“Factors Affecting Purchase Decision Of Health Insurance”

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

Master of Management Studies
(University of Mumbai)

2021-2023 Batch

Nadar Vaikundaraja Maharajan

Roll Number: V48

SUBMITTED TO:

DR. V. N. BEDEKAR INSTITUTE OF MANAGEMENT STUDIES,

THANE
 DECLARATION BY THE CANDIDATE

This is to certify project report entitled Factors Affecting Purchase Decision Of

Health Insurance, which is submitted by me in partial fulfillment of the requirement
for the award of Master of Management Studies, (University of Mumbai) Dr. V.N.
Bedekar Institute of Management Studies, comprises of my original work and due
acknowledgment has been made in the text to all other material used.

Wherever references have been made to intellectual properties of any individual /

Institution / Government / Private / Public Bodies / Universities, research paper, text
books, reference books, research monographs, archives of newspapers, corporate,
individuals, business / Government and any other source of intellectual properties
viz., speeches, quotations, conference proceedings, extracts from the website,
working paper, seminal work et al,they have been clearly indicated, duly
acknowledged and included in the Bibliography.

____________________________________
Date & Signature of Candidate

2
 CERTIFICATE BY THE GUIDE

This is to certify that project report entitled Factors Affecting Purchase Decision Of
Health Insurance, which is submitted by Nadar Vaikundaraja Maharajan in partial
fulfillment of the requirement for the award of Master of Management Studies,
(University of Mumbai) Dr. V.N. Bedekar Institute of Management Studies, is a
record of the candidate's own work carried out by him under my guidance. The
matter embodied in this report is original and due acknowledgment has been made in
the text to all other material used.

Name: - Mr. Pankaj Nandurkar

Authorized Signatory:
Date:

3
 ADITYABIRLACAPITAL
Subsidiary UnitAditya Birla Sun Life Insurance Company
Provisional Certificate

ToWhom It May Concern

This is to certify that candidate Nadar Vaikundaraja Maharajan has worked for a tenure
of 1 May2022to 30July2022 with our organization. He has undertaken the project
entitled Factors Affecting Purchase Decision Of Health Insurance under the supervision
of MrSubhajit Sengupta

Authorized Signature and Seal of the Company

Date

BranchAdd: - 101,1st floor, TrimurtiArcade LBS Marg, Near Sarvodaya Hospital, Ghatkopar(W)
Subhajit Sengupta Mob: -9324389234 / Email: -subhajisengupta1978@gmail.com

4
 INDEX
S. TITLE PAGE
NO. NUMBER
Chapter 1 Introduction

1.1 Declaration by Candidate 2

1.2 Certificate by the Guide 3
1.3 Certificate by the Organization 4
1.4 Executive Summary 6
Chapter 2 Industry Analysis 7

Chapter 3 About the company 10

3.1 Introduction to Aditya Birla Capital & Vision, Mission 12

3.2 Product of the company 16
3.3 SWOT Analysis 22

Chapter 4 On the Job Training 26

Chapter 5 Research & challenges faced by the company 32

5.1 Problem Identification 33

5.2 Data Analysis 34

Chapter 6 Results and Recommendation

6.1 Findings 47
6.2 Conclusion 48
6.3 Questionnaire 49
6.4 References/Bibliography 51

5
Executive summary

Now a day people are suffering with different health issues because of changing lifestyle
patterns. so, to take advantage of this grow business many more companies are establishing as
health insurance providers and a greater number of customers also show tendency coverts
purchasing health insurance as health sector is becoming more expensive. This study aims to find
the factors which affect the purchase decision or wait insurance from customer's point of view.
These studies will shed light on number of factors such as geographic factors, claims, premium
amount, other product features, promotional and referral mediums which influence the purchase
decision of insurance. This study will indicate what factors should be taken while designing
insurance policy, which factors should be focused while marketing health instance policy such
that if influences customer's mind. This study will be done by conducting online survey method
of 106 participants. Let’s see the obj of the study
OBJECTIVES
To find the factors customers consider while purchasing health insurance.
To study the Factors focused while designing of policy.
To study the relation between the factor and purchase decision of health insurance.
To study the relation between the factor and purchase decision of health insurance.

6
Chap 2 Industry analysis
Introduction

Aditya Birla
Capital Limited
is a listed public
company incorporated on 15 October, 2007. It is classified as a public limited company and is
located in Veraval, Gujarat. It's authorized share capital is INR 4,000.00 cr and the total paid-up
capital is INR 2,416.51 cr.

Aditya Birla Capital Limited's operating revenues range is INR 100 cr - 500 cr for the
financial year ending on 31 March, 2018. It's EBITDA has increased by 1,681.61 % over the
previous year. At the same time, it's book net worth has increased by 54.94 %. Other
performance and liquidity ratios are available here.

Description: The company provides end-to-end financial services to both retail and corporate
customers.

Products & Services: Home Finance, Personal Finance, SME Finance, Loan Against Securities,
Mortgage Finance.
Category: Financial services

The current status of Aditya Birla Capital Limited is - Active.

The last reported AGM (Annual General Meeting) of Aditya Birla Capital Limited, per our
records, was held on 20 August, 2021. Also, as per our records, its last balance sheet was
prepared for the period ending on 31 March, 2021.

Aditya Birla Capital Limited has eight directors - Kumar Mangalam Birla, SantruptMisra, and
others.
7
The Corporate Identification Number (CIN) of Aditya Birla Capital Limited is
L67120GJ2007PLC058890. The registered office of Aditya Birla Capital Limited is at INDIAN
RAYON COMPOUND VERAVAL, Gujarat.

The aim of the company is not just to provide insurance but also keeps an eye on being a helping
hand in the society

8
 Values of the company

Integrity: Acting and taking decisions in a manner that these are fair, honest, following the
highest standards of professionalism and are also perceived to be so. Integrity for us means not
only financial and intellectual integrity, but in all other forms as are commonly understood.

Commitment: On the foundation of Integrity, doing whatever it takes to deliver value to all
stakeholders. In the process, taking ownership for our own actions and decisions, those of our
team and that part of the organization that we are responsible for.

Passion: A missionary zeal arising out of emotional engagement with the organization that
makes work joyful and inspires each one to give his or her best. Relentless pursuit of goals and
objectives with the highest level of energy and enthusiasm, that is voluntary and spontaneous.

Seamlessness: Thinking and working together across functional silos, hierarchies, businesses
and geographies. Leveraging the available diversity to garner synergy benefits and promote
oneness through sharing and collaborative efforts.

Speed: Responding to internal and external customers with a sense of urgency. Continuously
seeking to crash timelines and choosing the right rhythm to optimize organization efficiencies

9
 Chap 3 About the company

About Kumar Mangalam Birla

There’s no way to tell how sure Kumar Mangalam Birla was about his journey when he took
over his father’s business empire at a young age of 28. In fact, very few people thought the low-
profile son of Aditya Birla could pull it off. When Birla took over the reins in 1995, the group’s
turnover was close to $2 billion and overseas operations made for a fraction of the same. Today,
the company is worth more than $40 billion, with operations in more than 40 countries and 60
per cent of the revenues come from foreign markets.

The industrial group has its fingers in almost all sectors – from textiles (Grasim), aluminum
(Hindalco and Novalis), yarn (Nuvo), cement (Ultratech), telecom (Idea Cellular), retail (Aditya
Birla Retail), chemicals (Aditya Birla Chemicals) and so on. Most of these companies are among
the top ten in their sector and while they continue to grow, the company’s garment names such as
Van Heusen, Peter England and Louis Philippe push the branding further.

Be it planning new ventures, acquiring firms, expanding existing companies or getting out of
businesses that don’t fit in with the brand’s philosophy, Birla has shown what it takes to be a
leader. From giving the Aditya Birla Group a brand identity to venturing into more foreign
markets, the strategy for the group has been to stay focused.

The man leading the group has made sure that there is a significant degree of managerial skills
and leadership acumen through the company. The group is known for its high-profile leaders and
managers who spearhead various arms. After the targets and strategy have been finalized, Birla
lets them have a free-hand of running the operations. As the result, the talented professionals not
only take ownership of the project but are also empowered to take decisions that help the
company.

Industry experts also admire the ways in which Birla infuses the company with fresh blood on a
regular basis and, at the same time, keeps trusted veterans close to him.

For 45-year-old Birla, whose favorite past times mean spending time with the family and

10
catching up with movies, handling business pressures comes with the territory. However, like a
true leader, not only does Birla delegate to the right people and communicate effectively within
and outside of the group, he also makes sure that there he leads by example. For, that’s what
leaders do.

Size of the industry

Aditya Birla Money is a Chennai based stockbroker with a strong presence across India. ABM
has been offering a range of financial service for over 25 years. The services offered by the
company include stock trading, currency trading, derivatives trading, Mutual Funds, depository
and e-insurance repository services. It also offers these services online as well as offline through
a network of branches and franchise offices.

Aditya Birla Money Key Facts

Aditya Birla Money is in the brokerage business since 1994 (25+ years of industry experience).

 Part of reputed Aditya Birla group

 Member of BSE, NSE, MCX, NSDL, CDSL, and SEBI.
 40+ branches and 800+ of franchise offices.
 A dedicated research team that regularly publishes reports
 Offline and Online Customer Support
 Provides access to good trading platforms and tools

Aditya Birla Money Branches

ABM has over 40 branch offices and 800 franchise offices across India. These branches also act
as a customer service point. To find an Aditya Birla Money branch near you, you can use the
branch locator available on the website.

Steps to find the branch:

1. Go to https://stocksandsecurities.adityabirlacapital.com website.
2. Click on 'Customer Services' link on the top right side of the page. It will take you to the
Customer Care page of Aditya Birla Capital. Click on 'Click to find an Aditya Birla
Capital branch near you'.

11
 3. Enter your location, city or state in the search box to get the list of branches. Please note
that the list will have branch details of all businesses of Aditya Birla Capital. Please click
on the 'Select All Business' tab available at the top right side and select 'Stocks and
Securities' to get details on ABM branches near you.

Vision of the company

To be a premium global conglomerate with a clear focus on each of the businesses.

Mission of the company

To deliver superior value to our customers, shareholders, employees and society at large

12
Major players in the industry

13
 3.2

Types of pension Plans

1. NPS
Regulated by Pension Fund Regulatory and Development Authority (PFRDA), the National
Pension Scheme or NPS is a popular option if you want to receive a regular pension after
retirement. With NPS, you can contribute to a pension account during your working life.Your
funds are invested in a mix of debt and equity markets as per your choice. Once you are 60 years
old, you can withdraw one part of the investment as a lump sum amount and use the remaining
for purchasing an annuity which will guarantee a regular income.

2.PENSION FUNDS
PFRDA has authorized as many as six companies to offer pension funds in India. But what is a
pension fund? Pension funds require you to invest a fixed amount for a fixed duration in a fund
of your choice. The fund providers generally offer many different types of funds to suit different
investors. As the value of the fund increases, so does your investment in them. After retirement,
you can withdraw the entire amount or remain invested and receive regular income.

3.ANNUITY PLANS
An annuity pension plan is of two types- immediate and deferred. In immediate annuity plans,
you pay a lump sum amount and instantly start receiving an annual or monthly annuity. With
deferred plans, you invest a lump sum amount or make regular payments for a fixed duration.
The annual or monthly annuity is only received after a particular term. The annuity payment can
be either for a fixed period or for a lifetime in both the plans.

14
4.PENSION PLANS WITH LIFE COVER
These plans offer the dual benefits of life insurance and investment. One part of your premium is
reserved for life insurance, and the remaining is invested in a fund of your choice. On maturity,
you can withdraw the entire corpus at once or receive regular payments. If you die during the
policy term, your nominee will receive the death benefit.

Try to know more about the types of pension plans listed above and go with one that offers a
dynamic combination of savings, safety, and guaranteed income post retirement.

15
 Industry Financials
2019-20

It has been several months since the pandemic engulfed the world and yet there is a lot of
uncertainty with respect to the extent of the economic contraction due to this crisis, and the
subsequent pace of recovery. This year will see an economic contraction, but the ‘2020
recession’ is turning out very different from the past recessions. It has been too sudden – almost
off the cliff; its spread has been all-encompassing – affecting almost every economy and sector;
and the plunge in economic activity levels and employment has been unprecedented. On the
positive side, this recession is likely to be one of the shortest, assuming no second wave of the
pandemic recurs. As present lockdowns around the world get lifted, and businesses reopen,
economic activity is likely to bounce back fairly quickly. Around US$9-trillion stimulus from
different governments globally will help to support this recovery, along with the monetary
actions by central banks. These policies will also help to restrict the second-order effects like
defaults and bankruptcies. Some scars of the crisis will remain in the form of subdued consumer
and business confidence. Some sectors like airlines and hospitality will take time to recover
fully. And some supply chain disruption effects will linger. The International Monetary Fund
(IMF) and other agencies are predicting that it could take about five to six quarters for global
GDP to inch back to pre-crisis levels, and the global economic trajectory thereafter will be below
the pre-COVID trajectory for the next few years. As the world emerges from the current crisis,
the next few years are likely to be marked by the lack of buoyancy in growth, subdued
commodity prices and inflation, a cautious trend in project investments, heightened risks of de-
globalization and political uncertainty; and increased dependence of financial systems on ultra-
loose monetary policy conditions. We will KUMAR MANGALAM BIRLA Chairman, Aditya
Birla Group CHAIRMAN’S LETTER TO SHAREHOLDERS also have to watch out for
potential post-COVID changes in consumer behavior (such as more virtual engagements) and of
operating models of organizations (such as work-from home norms, diversification of supply
chain risks, more use of e-commerce).

16
COVID-19 struck India at a time when the underlying economic conditions were subdued on
account of heightened global uncertainty and stress in the domestic financial system. Against this
backdrop, a stringent national lockdown to slow the spread of the pandemic started in the last
week of FY 20 and remained active to varying degrees in different geographies through most of
the Q1 FY 21. It is estimated that ~80% of India’s GDP originates from districts which were
classified under the red and orange zones during the lockdown, where economic activity
remained severely constrained. Correspondingly, India’s GDP is likely to contract in FY 21,
which would be the first such instance in over four decades. The contraction is estimated to be
particularly severe during Q1. Responding to this challenge, both the Reserve Bank of India
(RBI) and the Government of India announced several policy measures to provide relief to the
affected sections of the economy, to reduce the possibility of business failures and to support the
process of recovery. The government has already initiated some remarkable reforms in
agriculture, mining and public sector enterprises. Such pragmatic policies along with the
ambitious National Infrastructure Pipeline programme that the government had announced in
December 2019 will support India’s medium-term growth rebound. In the interim, however, the
Indian economy, like the global economy will need to navigate through some difficult quarters.

2021-22 GLOBAL ECONOMY: THE STORM BEFORE THE CALM? The global
economy recovered from the pandemic shock in 2022 on the back of supportive fiscal and
monetary policies and mass vaccination programmes. However, at the end of FY 2021-22, the
war in Ukraine and the subsequent economic sanctions on Russia posed a large shock. It
disrupted energy markets and supply chains and added to the already evolving inflationary
pressures and concerns over consumer demand. Consequently, growth forecasts have been
slashed. The International Monetary Fund (IMF) now expects the world economy to grow by
3.6% in CY22, which is 0.8 percentage points lower than its pre-war projections.

17
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7.5% - 2-year policy, 10% - 3-year policy, 5% - 2-3 member Multi Individual Policy, 10% - 4 or
more members Multi Individual Policy

Aditya Birla Health Insurance may break even in next fiscal year on strong growth
trajectory
The company's gross written premium during April-June 2021 rose 50 per cent to Rs 368 crore.
However, there was a loss of Rs 128 crore during the first quarter, due to COVID-19 claims of
Rs 112 crore.

Aditya Birla Health Insurance Company (ABHICL) is likely to break even in the next financial
year as the company is growing at a "good rate", a top company official said. The Aditya Birla
Group's health insurance company commenced its operations in October 2016.

"We are focused on break-even; we want to break even in the next financial year. We are
growing at a good rate, and creating a good business. ABHICL grew close to 50 per cent last
year and we want to maintain this kind of growth," ABHICL Chief Executive Officer Mayank
Bathwal told PTI in an interaction.

He said the company would like to grow at a similar rate of around 50 per cent in the current
financial year as well.

The company's gross written premium during April-June 2021 rose 50 per cent to Rs 368 crore.
However, there was a loss of Rs 128 crore during the first quarter, due to COVID-19 claims of
Rs 112 crore.

During the April-July period of the current financial year 2021-22, the company's gross direct
premium income grew about 43 per cent to Rs 493 crore.

At the end of the March 2021 quarter, ABHICL recorded a gross written premium (GWP) of Rs
1,301 crore and covered more than 13.4 million (1.34 crore) lives.

Bathwal said the insurer has seen good traction across categories as customers are now realising
the importance of health insurance as the coronavirus pandemic has hit them hard.

19
"Good thing is that from the regulatory perspective, there have been a lot of enablers. However,
there are challenges in terms of the initial impact of COVID-19 cases as the claims have been
high," he added.

The company's unique and differentiated health-first business model, such as 100 per cent return
of premium, is contributing to more than 50 per cent of retail health new business.

The insurance company's products also incentivize policyholders for maintaining a good health
record, Bathwal said.

He said the company's Rs 1-crore policy cover that was launched a one-and-a-half year ago has
also become a successful product.

The pandemic has come as an unexpected event, though it has helped in increasing the awareness
level of consumers. They are realizing why it is critical to have an insurance cover, said the
official.

Now, people have started buying insurance at an early age. Besides, the value of the sum assured
has also gone up. The sum assured amount has now gone up to Rs 5-10 lakh, which was in the
range of Rs 3-4 lakh earlier, he said.

Also, people are finding that their corporate insurance cover may not be enough to cover for any
eventuality, so they are looking for top-up and additional insurance coverage also, the official
added.

On being asked about the company's capital requirements, he said, "We are in a growth mode,
we are still having our losses. But, as I said that we will be breaking even next year, so we will
continue to seek some capital. But we are at the fag end of that requirement".

"So, our capital requirements will not be there after that," he said without specifying any amount.

On growth opportunities, he said there is a lot of potential in tier-III and IV cities. It will also
help create better healthcare facilities.

"If you have more health insurance in smaller towns, then automatically it will create more
demand for healthcare facilities because the insurance product will fund it.

20
 Why to choose Aditya Birla insurance

Aditya Birla Capital provides you to the lower amount to the amount which you can afford.

Aditya Birla Health Insurance offers a range of health insurance plans that meet varied health
insurance requirements of the individuals. It offers individual health insurance plans, family
health insurance plans, senior citizen health insurance plans, COVID-19 health insurance plans,
etc. that provide the insured with a wide scope of coverage as well as wellness-oriented benefits
that promote healthy living, all of it at affordable premiums. The insurer also offers an
assessment tool, with the help of which one can find the best health insurance plans as per their
requirements and budget.

21
 3.3SWOT analysis of the company

Strengths of Aditya Birla Group

Strengths are an organization’s unique abilities, these abilities help them to capture a large
market share, attract more customers and maximize profits. Following are Aditya Birla Group’s
strengths:

 Online Sales: With all these actors working with brands, the Aditya Birla Group’s online
presence is quite well. Customers can get hands-on with any products of the group easily
through their website, also the fashion brands are available on the e-commerce sites like
Flipkart, Amazon, etc.
 Technological Superiority: Managing a multinational corporation, with a wide range of
products, the company needs to be well structured physically as well as virtually. And
when it comes to technical stability the Aditya Birla Group provides 100% online support
24/7, with a good track record of clients, customers can get their years ago information
with a single click from the group’s online portal.

Also, when it comes to online reputation management on social media platforms, Aditya Birla
Group is always ahead of its competitors and this is the reason, today Aditya Birla Group is one

22
of the biggest conglomerates in the world. So, when the question comes to how to make your
business successful digitally then social media marketing, online reputation management &
content strategy are some of the ways to achieve so. You can learn all these digital marketing
skills from digital industry experts under one roof, course by course, as per your speed and time,
within a week or less than that.

 Brand Recognition is High: Aditya Birla Group is one the largest apparel brand in
India, owning over 10 clothing brands like Allen Solly, Peter England, Pantaloons, Louis
Philippe, Van Heusen, etc. also the group is also recognised for producing cement,
carbon black, textiles, chemicals, etc. It is one of the oldest telecom service providers in
India.
 Increasing International Visibility: As we all know, it is a multinational corporation,
working in over 30 countries. The group is always trying to expand more, providing
employment, trying to capture markets with their products.
 Product Innovation Skills: Aditya Birla Group provides a wide range of newly created
products, every year. With being one of the biggest financial institutes in India, the group
always comes with attractive loan plans, attractive return on investment plans with their
mutual funds & FD’s.
 Weaknesses of Aditya Birla Group

Weaknesses are the points that every brand or company needs to improve or get rid of.
Weaknesses of Aditya Birla Group are as followers:

 Operational Complexity: With an increasing audience, the group is providing a large

number of consumer goods as much as they can. While making adjustments, a small
change can make an unexpected impact on operational complexity. Providing a variety of
products is causing operational complexity to the group.
 The Processing Chain is Quite Long: Having a huge customer following delays the
process of ongoing functions like maintaining a large scale of client records & keeping
them up to date every time takes time and while doing all the work simultaneously it
delays the ongoing processes.

Opportunities for Aditya Birla Group

23
Like weaknesses, opportunities are the areas where a company needs to focus, on improving
results, increasing sales, and, ultimately, profits.

 E-commerce: Many of us are now making our purchases online. The Aditya Birla Group
is the leading fashion brand in India, but while having its products on different e-
commerce sites, the company doesn’t have their e-commerce site where customers can
explore only Aditya Birla Group’s products. Having their e-commerce site can generate
revenue & will increase customer following to the company.

Useful Tip: Along with selling your products on big e-commerce sites such as Amazon, Flipkart
etc., you can also create a separate e-commerce website through WordPress website planning &
development or you can create your own e-commerce website on Shopify with this Online E-
Commerce Training Course.

With this, you will be able to pick the right e-commerce platform for your product and choose
appropriate shipping, packaging, and payment partners. Also, you can personally get in touch
with your customers to solve their queries.

 Rising Urbanization: With the increase in the rate of urbanization, the company needs to
fulfil the demands of the customers, especially those who are from the non-urban area &
wants to explore the brand. The study predicts that by the end of 2050 the two-third of the
world will be in urban areas. Multinational brands like Aditya Birla Group need to
provide the services in baby-urban cities.

Threats to Aditya Birla Group

Threats are the factors that can be harmful to the company’s growth. The following are some of
the Aditya Birla Group’s threats:

 Substitution Effect: Due to owning expensive brands like Van Heusen, etc. the target
audience of the company is limited. And with competitors giving cheaper products with
the same quality, the company can lose market share. If a brand increases its price,
customers can choose an alternative brand with a cheaper price.

24
  Currency Fluctuation Effect: Being a multinational company requires heavy export &
import. And with a weaker currency make exports more expensive, while making
products cheaper for overseas customers.

For huge corporations like Aditya Birla Group, a SWOT analysis is a great way to break down
their complex procedure into simple to understand managerial risks and rewards. This ends our
detailed SWOT analysis of Aditya Birla Group. Let us conclude our learning below.

25
 Chap-4

On the job training

Set up with the objective of creating learning synergy between business units and bringing the
best learning opportunities to our people. The ABC University goes a long way in helping our
talent hone existing skills or acquire new ones as per the requirements of their job role. It brings
together some of the top learning and development professionals from across our businesses to
identify common learning needs so as to design and execute high impact learning interventions
to meet those needs.

Talent Council

The ABC Talent Council comprises our Group Chief Executive, Deputy Group Chief Executive,
Chief Human Resource Officer, and on a rotational basis, the CEOs or HR Heads of business
units. The Council invests a significant amount of time identifying key talent in senior leadership
positions, developmental goals and cross-business career moves to create a robust yet fungible
senior leadership team.

ABC Talent Development Initiatives

The ABC Leadership Talent Development Program (LTDP) was conceptualized to groom key
talent across levels. Comprising 3 intensive talent programs, the LTDP allows for intensive
leadership training and mentoring across all management levels.

Employee Engagement

It’s not all work and no play at ABC. Our spirit of integration and One team philosophy allows
for greater employee connect and engagement across teams and businesses at regular levels.
From an effective Intranet Let’s Connect where employees access important updates across
Aditya Birla Capital to our quarterly in-house newsletter, we encourage free exchange of
information, inspiration and innovation.

26
Other Engagement Initiatives include –

The Doer’s Club that hosts three individual platforms - The Innovation Portal, The Speed
Portal and The Kaizen Portal.

The Innovation Portal

A portal to encourage employee innovation, this is a platform where employees can voice their
ideas. Reviewed periodically by Senior Management, these ideas are regularly implemented
basis the value-add to the business

The Speed Portal

This portal gives all employees the liberty to identify processes that need to be sped up.
Employees are also encouraged to suggest improved process ideas that can decrease turnaround
times and increase efficiency. Outlined issues are reported and then forwarded to the appropriate
business unit for resolution

The Kaizen Portal

To ensure continuous improvement, employees are provided individual dashboards to track how
many Kaizen, Innovation and Speed suggestions have been shared with the Senior Management
and how many have been implemented.

Across Aditya Birla Capital, there are multiple platforms at a group or business unit level which
promote and encourage dialogue between employees and Senior Management.

These platforms also serve as sources of rich data for us to understand the pulse of our
employees

27
 Work responsibilities assigned
1. During the internship we used to study the policies of the company and the types of
insurance so that we can introduce those insurance policy to the people who are not
aware about insurance policy or the people who are in need for a policy
2. Trainer used to teach us the detailed information about each and every policy of the
insurance
3. There were different insurance based on health of may be child or adults and every
insurance policy differ from each other

28
 Task Accomplished

1. The task of mine was to attract people to buy the insurance policy
2. I have sold 2 policies

Award winning products

Aditya Birla Capital wins the India CSR Award for Innovation and Leadership for project
Saksham. Birla Cellulose is ranked number one globally, for its work on the conservation of
ancient and endangered forests, by the NGO Canopy in its Hot Button Report.

Reasons to choose Aditya Birla Capital

Comprehensive Health Cover

 Modern Treatment methods covered.

 Avail cashless Home Treatment.
 Get Premium Waiver in case of detection of critical illness.
 Modern Treatment methods covered.
 Avail cashless Home Treatment.

Chronic Management Program

 Day 1 cover for chronic illnesses such as Asthma, High Blood Pressure, High cholesterol,
and Diabetes.
 Covers costs for tests and diagnostics.

Health Benefits

 Stay active and earn up to 100% of premium as Health Returns

 Double your Sum Insured in 2 claim free years.

Access To Expert Health Coaches

29
 Coaching on nutrition, fitness and mental health
 Mental wellness counselling, Homeopathy tele-consultation.

30
Titles of Aditya Birla Capital

IN 2019

 Most Effective Recruitment and Retention Strategy Award

 Six Sigma Projects - Improvement in TAT Adherence for Legal Risk Mitigation
Processes BSG UAT Automation
 2nd Runner-Up: Six Sigma Project - DM Persistency.

IN 2018

 Best Fraud Intelligence Company of the Year

 Silver in Innovation - Contract Management Process
 Best Use of Innovation to Enhance Customer Experience.

IN 2017

 Four Gold for Kaizen Implementation Five Silver for Six Sigma Yellow Belt and
Kaizens
 Best Risk Management Team
 Best Practices on Risk and Compliance.

31
 Chap-5 Research & challenges faced by the company

There's no way to tell how sure Kumar Mangalam Birla was about his excursion when he
assumed control over his dad's business realm very early on of 28. Truth be told, a couple of
individuals figured the position of safety child of Aditya Birla could pull it off. At the point when
Birla assumed control over the reins in 1995, the gathering's turnover was close $2 billion and
abroad tasks made for a small part of the indistinguishable. Today, the corporate is worth more
than $40 billion, with tasks in extra than 40 nations and 60 percent of the incomes come from
unfamiliar business sectors.

With a rising crowd, the gathering is giving a curiously large number of exchange products the
most extreme sum as they'll. While making changes, a minuscule low change can have a
surprising effect on functional intricacy. Giving a spread of items is making functional intricacy
the gathering.

Having a huge client following defers the strategy for progressing capabilities like keeping a
curiously large size of client records and keeping them up to now at whatever point takes time
and keeping in mind that accomplishing basically everything all the while it postpones the
proceeded with processes.

Aditya Birla Group: Of challenges and opportunities

There’s no way to tell how sure Kumar Mangalam Birla was about his journey when he took
over his father’s business empire at a young age of 28. In fact, very few people thought the low-
profile son of Aditya Birla could pull it off. When Birla took over the reins in 1995, the group’s
turnover was close to $2 billion and overseas operations made for a fraction of the same. Today,
the company is worth more than $40 billion, with operations in more than 40 countries and 60
per cent of the revenues come from foreign markets.

The industrial group has its fingers in almost all sectors – from textiles (Grasim), aluminum
(Hindalco and Novelis), yarn (Nuvo), cement (Ultratech), telecom (Idea Cellular), retail (Aditya
Birla Retail), chemicals (Aditya Birla Chemicals) and so on. Most of these companies are among
the top ten in their sector and while they continue to grow, the company’s garment names such as
Van Heusen, Peter England and Louis Philippe push the branding further.

32
Be it planning new ventures, acquiring firms, expanding existing companies or getting out of
businesses that don’t fit in with the brand’s philosophy, Birla has shown what it takes to be a
leader. From giving the Aditya Birla Group a brand identity to venturing into more foreign
markets, the strategy for the group has been to stay focused.
The man leading the group has made sure that there is a significant degree of managerial skills
and leadership acumen through the company. The group is known for its high-profile leaders and
managers who spearhead various arms. After the targets and strategy have been finalized, Birla
lets them have a free-hand of running the operations. As the result, the talented professionals not
only take ownership of the project but are also empowered to take decisions that help the
company.
Industry experts also admire the ways in which Birla infuses the company with fresh blood on a
regular basis and, at the same time, keeps trusted veterans close to him.
For 45-year-old Birla, whose favourite past times mean spending time with the family and
catching up with movies, handling business pressures comes with the territory. However, like a
true leader, not only does Birla delegate to the right people and communicate effectively
withinand outside of the group, he also makes sure that there he leads by example. For, that’s
what leaders do.

33
Data Analysis

Gender

Gender No. of respondents Percentage%

Male 21 57.1
Female 15 42.9

In the above image, we can see that 57.1% (21) respondents were Male and 42.9% (15) were
Female.

Income

34
 Income No. of respondents Percentage%
Below 25k 18 52.9
25k to 35k 6 14.7
35k to 45k 6 17.6
55 above 5 14.7

In the above figure, 52.9% (18) respondents were in the income group below 25k, 14.7% (6)
respondents were in the income range of 25k to 35k, 17.6% (6) respondents were in the income
range of 35k to 45k and 14.7% (5) were in the income range of 55k and above.

Age

Age No. of respondents Percentage

Below 25 22 62.9
25 to 35 6 14.3

35
 35 to 45 4 11.4
45 to 55 2 5.6
Above 55 2 5.6

In the above figure, 62.9% (22) respondents were in the age group below 25, 14.3% (6)
respondents were in the age group of 25 to 35, 11.4% (4) respondents were in the age group of
35 to 45, 5.6% (2) respondents were in the age group of 45 to 55, 5.6 (2) respondents were in the
age group of 55 and above

Marital status No. of respondents Percentage%

Single 28 77.1
Married 8 22.9

In the above image, 77.1% (28) respondents were single and 22.9% (8) respondents were
married

36
Occupation

Occupation No. of respondents Percentage%

Employed 14 37.1
Business 9 25.7
Unemployed 9 25.7
Housewife 2 5.6
Occupation 2 5.6

In the above image, 37.1% (14) respondents were employed, 25.7% (9) respondents were
business person, 25.7% (9) respondents were unemployed, 5.6% (2) respondents were
housewife, 5.6% (2) respondents were doing occupation.

Purchasing Health insurance No. of respondents Percentage%

Agree 24 65.7
Disagree 6 17.1
Neutral 6 17.1

In the above image, 65.7% (24) respondents did agree with the claim, 17.1% (6) respondents
disagreed, 17.1% (6) respondents were neutral.

37
 Preference No. of respondents Percentage%
Collecting fund 29 80
20Claim Insurance 7 20

In the above image, 80% (29) respondents selected the way of claiming insurance and 20% (7)
respondents selected the way of collecting funds.

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 Attention to no. of claims No. of respondents Percentage%
settled
Agree 23 62.9
Disagree 7 20
Neutral 6 17.1

In the above image, 62.9% (23) respondents agreed to paying attention to the claim settled by
date, 20% (7) respondents disagreed, 17.1% (6) were neutral.

Claim settlement No. of respondents Percentage%

Agree 24 65.7
Disagree 6 17.1
Neutral 6 17.1

In the above image, 65.7% (24) respondents agreed with the terms and conditions while
purchasing insurance, 17.1% (6) respondents disagreed and 17.1% (6) stayed neutral

39
 Claim should be assessed No. of respondents Percentage%
promptly
Agree 23 62.9
Disagree 4 11.4
Neutral 9 25.7

In the above image, 62.9% (23) agreed with the claim should be promptly assessed in health
insurance policy, 11.4% (4) disagreed and 25.7% (9) stayed neutral.

40
 Paying attention to the ratio No of respondents Percentage%
of insurance premium
Agree 18 50
8.3Disagree 3 8.3
Ne41.7utral 15 41.7

In the above image, 50% (18) agreed with paying attention towards the ratio of premiums
possible on insurance coverage, 8.3% (3) disagreed and 41.7% (15) stayed neutral.

Encouragement to purchase No. of respondents Percentage%

health insurance on the basis
of premiums
41
 Agree 20 55.6
Disagree 6 16.7
Neutral 10 27.8

In the above image, 55.6% (20) agreed with the benefits of premiums od for insurance,
16.7% (6) disagreed and 27.8% (10) were neutral

Fluctuation in premium No. of respondents Percentage%

amount may change the
perception of buying
insurance
Agree 19 52.8
Disagree 4 11.1
Neutral 13 36.1

In the above image, 52.8% (19) respondents agreed with fluctuation in premium while buying a
premium, 11.1% (4) respondents disagreed and 36.1% (13) were neutral

42
 Paying attention to capping No. of respondents Percentage%
while evaluating health
insurance
Agree 15 41.7
Disagree 8 22.2
Neutral 13 36.1

In the above image, 41.7% (15) respondents did agreed with the capping percentage of change in
claim, 22.2% (8) respondents disagreed and 36.1% (13) were neutral.
43
44
Chapter 6- Results and Recommendation
6.1

Findings

 Single people purchase more health policies than single people.

 Employed and people in risky occupations have belief about purchasing health plan may
be the reason is as they can afford large premium amount.
 If the family size is large that is more than 5 members then those families prefer to
purchase health insurance maybe they are seeing it as health investment.
 This report also compared the factors of top five policies in India which gives broad idea
about how these factors contribute while designing the policies
 Factors related to claim which is very crucial process in health policy like number of
claims settled by the company till date. terms and conditions regarding that prompt
service or time required for claim settlement has impact on purchase decision. Among
these factors Number of claim settled is more important for customer may be it is
building trust in customer's mind.
 When you think about promotional and referral factors which are service support by
company, Suggestion given by family and friends, Terms and conditions stated at the
time of policy renew, agent's suggestion. internet advertisements, attitude towards online
renewal of policy has impact on purchase decision. So marketers have to use these
promotional factors innovatively

45
6.2

Conclusion

Insurance is an important form of life and essential for every individual. Insurance penetration
in India is very low as compare to developed nation where almost all the lives are covered and
stage of saturation has been reached. Customers are the real pillar of the success of life
insurance business and thus it’s important for insurers to keep their policy holders satisfied and
retained as long as possible and also get new business out of it by offering need based
innovative products. There are many factors which affect customers investment decision in
insurance and from the study it has been concluded that demographic factors of the
people play a major and pivotal role in deciding the purchase of insurance policies

46
Questionnaire
Factors affecting purchase decision of health insurance.
Required
1. Gender Mark only one oval. 1) Male 2) Female
2. Income (per month) Mark only one oval. 1)below 25k 2)25k-35k 3)35k-45k 4)45k-55k 5)55
above
3. Age Mark only one oval.1) Below 25 years 2) 25-35 years 3)35-45 years 4)45-55 years 5)55
above
4. Marital status Mark only one oval. 1) Single 2) Married
5. Occupation * Mark only one oval. 1) Employed 2) Business 3) Unemployed 4) Housewife 5)
occupation (driver, police, construction workers)
6. Family size * Mark only one oval. 1) Single 2)3 3)4 4)5 5) more than5
7. In case of any family member’s health emergency, what would you prefer in regards to ease.
1)Collecting funds 2)Claim insurance
8. Al) The flow of claim regulation and settlement is the criterion worth of one's attention
purchasing health insurance. * Mark only one oval.
12345
Strongly agree strongly disagree
9. A2) when evaluating health insurance service, I pay attention to the number of claim settled by
till date.* Mark only one oval.
12345
strongly agree-strongly disagree
10. A3) Terms and conditions regarding claim settlement are important for me while purchasing
insurance. * Mark only one oval.
12345
strongly agree -strongly disagree
11. A4) claim should be assessed promptly on intimation in health insurance policy. * Mark only
one 12345
strongly agree- strongly disagree
12. B1) when evaluating an insurance service, I pay attention to the ratio of insurance premiums
possible insurance coverage. * Mark only one oval

47
strongly agree -strongly disagree
13. B2) the expected investment benefits on the premiums paid for insurance, would encourage
me to
purchase health insurance. * Mark only one oval.
12345
strongly agree -strongly disagree
14. B3) Fluctuation in premium amount change my perception about purchasing health
insurance. * only one oval.
12345
strongly agree -strongly disagree

48
6.3 Reference

[1]. William S. Cartwrighta, Teh-wei Hub & Lien-fu Huang (1992), Impact of varying Medigap
insurance coverage on the use of medical services of the elderly, Applied Economics, Volume
24, Issue 5,

pages 529-539

[2]. Keith Mueller & Joseph Blankenau (1999), Losing and Acquiring Health
insuranceConsequences for Health Care

, Journal of Health & Social Policy, Volume 11, Issue 3, pages 1-15

[3]. Robin Pearson (2002), Growth, crisis and change in the insurance industry: a retrospect,
Accounting, Business & Financial History, Volume 12, Issue 3,

pages 487-504

49
 Summer Internship Progress Report

Name of the Student: Nadar Vaikundaraja Maharajan

Name of the Organization: Aditya Birla Capital

(Placed for summer internship)

Area of Specialization: Finance

Reporting Head/ Mentor in the Organization: Mr. Subhajit Sen Gupta

Name of the Internal Guide (Institute): Mr. Pankaj Nandurkar

Title of the project: Factors Affecting Purchase Decision Of Health Insurance.

Duration of the project: 1 May 2022 to 31 July 2022

Progress Report:

Sr. No Date Particulars/ Progress Guide’s Student’s

Signature Signature
1 15-06-22 Objective
2 28-06-22 Executive Summary
3 02-07-22 Fundamental & Technical Analysis
4 08-07-22 Data Analysis
5 12-07-22 Findings

50
Authorized Signatory Student’s Signature

51