Premila Shushir

NIT SCHOOL OF MANAGEMENT/
NAGPUR INSTITUDE OF TECHNOLOGY

Department Of Management Studies
PROJECT REPORT
ON
“A Study On Awareness Of Health Insurance Policyamong
Rural Citizen With The Reference Of Kalmeshwar”
Submitted to
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
for the award of degree of
Master of Business Administration
course specialization in
Finance Management
Prepared by:
Premila Ramaji Sushir
Guide:
Dr. Vaibhav Bhalerao
2018-2020
NIT Graduate School of Management
Survey No. 13/2, Mahurzari, Katol Road, Nagpur – 441 501
“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 1

CITIZEN WITH THE REFERENCE OF KALMESHWAR”
CERTIFICATE
This is to certify that the project report titled “A study on Awareness of Health Insurance Policy among
Rural Citizen with the reference of Kalmeshwar ”; is a bonafide work of Premila Ramaji Sushir who is
student of MBA (Second Year), N I T Graduate School of Management (Academic Session – 2018-2020).
This report is being submitted in partial fulfillment of requirement for the course of Post Graduate Degree of
Masters of Business Administration (MBA) of Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur.
Dr. Vaibhav Bhalerao Dr .Mukesh Patil
Project Guide I/c Director

APPROVAL OF PROJECT PROPOSAL
Name of Student : - Premila Ramaji Sushir
Enrollment Roll No : - 2015016600034293
College : - NIT Graduate School of Management,Nagpur
Address of Student : - Katol Road, Near by Regent School, Gajanan colony,

Bramhani,Kalmeshwar
Title of Project : - A study on Awareness of Health Insurance Policy among Rural Citizen
with the reference of Kalmeshwar
Subject Area : - Finance Management
Name of Guide : - Dr. Vaibhav Bhalerao
Prof. Dr. Vaibhav Bhalerao Dr Mukesh Patil
Faculty & Guide I/c Director

DECLARATION
I miss. Premila Ramaji Sushir hereby declare that the project report titled, “A study on awareness of
Health Insurance Policy among rural Citizen with the reference of Kalmeshwar” which is being
submitted by me in partial fulfillment of requirement for the Degree of Master of Business Administration
of Rashtrasant Tukadoji Maharaj Nagpur University, is a bonafide record of work exclusively carried out by
me. It is the result of my genuine efforts and the same has not been previously submitted towards
requirements of any course or examination of this or any other university.
The sources of material and information used in this research study has been duly acknowledged and
certified. I hereby further confirm that this project truly represents the bonafide work undertaken by me and
is the outcome of thorough and systematic research.

ACKNOWLEDGEMENT
“It is no possible to prepare a project report without the assistance & encouragement of other
people. This one is certainly no exception.”
On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards
all the person ages who have helped me in this endeavor. Without their active guidance, help,
cooperation & encouragement, I would not have made headway in the project.
I am ineffably indebted to Miss Premila Ramaji Sushir for conscientious guidance and
encouragement to accomplish this assignment.
I am extremely thankful and pay my gratitude to my faculty Dr. Vaibhav Bhalerao

for his valuable guidance and support on completion of this project in its presently.
I extend my gratitude to NIT Graduate School of Management for giving me this opportunities.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member
of my family, who has always supported me morally as well as economically.
At last but not least gratitude goes to all of my friends who directly or indirectly helped me to
complete this project report.

TABLE OF CONTENTS
Chapter
Contents Page No.
No.
1. Introduction 8
15
2. Literature Review
19
3. Research Methodology
34
4. Data Interpretation
49
5. Suggestions
51
6. Conclusions
54
7. Bibliography
Annexures 56

EXECUTIVE SUMMARY
The purpose of the study is to know the survey and findings on awareness of health
insurance policy in rural area (kalmeshwar). The need for the study arises to know about the
awareness of health insurance policy by the rural area klmeshwar for the knowledge of health
insurance policy. In the research methodology methods of data collection, sample size, limitation
of study and Hypothesis like null and alternative hypothesis. According to IRDA the statistical
data in India shows that the 14% of rural area has covered and 18% of urban area has covered of
health insurance policy. From the below data collected from respondents it is shows maximum
number of respondents are coming under age group of 21-40 years and while the minimum number
of respondents are H.S.C. Here we find out that maximum number of respondents are private
employee and less number of respondents are others among our target population, the maximum
respondents annual income is below 1 lakh..
In the rural area citizen are very low people aware about health insurance policy, there are
two reasons of that i.e. Lack of awareness and premium is high. It is concluded that in the
kalmeshwar rural area people awareness about health insurance policy is too less. I will suggest
should spread awareness about health and having about health insurance policy to have and
available local clinic and hospital nereby of rural area(kalmeshwar)

CHAPTER 1
INTRODUCTION

INTRODUCTION
HEALTH INSURANCE
The concept of health insurance was proposed in 1694 by hugh the elder chamberlin from the peter
chamberlin family. In the late 19th century, ―accident insurance‖ began to be available, which
operated much like modern disability insurance. This payment model continued until the start of
the 20th century in some jurisdiction (like California), when all laws regulating health insurance
actually referred to disability insurance. Patients were expected to pay all other health care costs
out of their own pockets, under what is know as the fee-for-service business model. During the
middle to late 20th century, traditional disability insurance evolved into modern health insurance
program. Today, most comprehensive private health insurance program cover the cost of routine,
preventive, and emergency health care procedure, and also most prescription drugs, but this was
not always the case. Insurance may be described as a social device to reduce or eliminate risk of
life and property. Under the plan of insurance, a large number of people associate themselves by
sharing risk, attached to individual insurance plan that exclusively covers healthcare costs and is
called health insurance. Since the past two decades, there has been a phenomenal surge in
acceleration of healthcare costs. This has compelled individual to have a re-look on their actual
monthly expenditure, spending patterns and simultaneously allocate a proportion of their income
towards personal healthcare. This has resulted in individual availing healthcare insurance coverage
not only for themselves but also for there family members including their dependents. In short,
healthcare insurance provides a cushion against medical emergencies. The concept of insurance is
closely concerned with security. Insurance acts as a shield against risks and unforeseen
circumstances. In general, by and large, Indians are traditionally risk-averse rather than risk lovers
by nature.
Health insurance is a from of group insurance, where individual pay premiums or taxes in order
to help protect themselves from high or unexpected healthcare expenses. Health insurance works
by estimating the overall ― risk‖ of healthcare expenses and developing a routine finance
structure ( such as a monthly premium, or annual tax) that will ensure that money is available to
pay for the healthcare benefits specified in the insurance agreement. The healthcare benefits is
administered by a central organization, which is most often either a
government agency, or a private or not-for-profit entity operating a health plan.
How many accident need to realize that you need health cover? It takes just one visit to a
hospital to make us realize how vulnerable we are, every passing second. For the rich as well as
poor, male as well as female and young as well as old, being diagnosed with an illness and
having the need to be hospitalized can be tough ordeal. Heart problems, diabetes, stroke, renal
failure, cancer-the list of lifestyle diseases just seem to get longer and more common these day.
Thankfully there are more specialty hospitals and specialist doctors – but all that comes at a cost.
The super rich can afford such cost, but what about an average middle class person. For an
illness that requires hospitalization/ surgery, costs can easily run into five digit bills. A health
insurance policy can cover such expenses to a large extent. Read why health insurance is more
important these day compared to old days health is a human right, which has also been accepted
in the constitution. Its accessibility and affordability has to be insured. While the well-to-do
segment of the population both in rural and urban areas have acceptability and affordability
towards medical care, at the same time cannot be said about the people who belong to poor
segment of the society. It is well know that more than 75% of the population utilizes private
sectors for medical care unfortunately medical care becoming costlier day by day and it has
become almost out of reach of the poor people. Today there is need for injection of substantial
resource in the health sectors to ensure affordability of medical care to all. Health insurance is an
important option, which needs to be considered by the policy makers and planners. As mentioned
earlier, the cost of health insurance depends on the sum assured age, current health condition and
you previous medical history. Higher the sum assured, higher the premium.
So what is the ideal health insurance cover requirement? There is no standard answer or
thumb rule for this. If we agree that health insurance is important, one has to look at his/her own
lifestyle, health condition, age/ life stage, family history of illness and affordability. Keep in
mind that most insurance companies limit the sum assured to a maximum of 5 lakhs. Also note
that many health insurance policies –provide additional benefits|| such as daily allowances,
ambulance charges, etc. for hospitalization. Not only are such –benefits || superfluous , they tend
to drive the premiums higher. So it is best to avoid such plans and stick to something basics and
simple.

OBJECTIVE OF THE STUDY
 To assess the individual awareness about health insurance.

 To know the preference of individual regarding health insurance.
 To assess the effectiveness of company service.
 To find the awareness regarding health insurance and its source of information.
 To determine the willingness to join and pay for health insurance.

HYPOTHESIS
DEFINITION OF HYPOTHESIS
A hypothesis is a testable prediction which is expected to occur. It can be a false or a true

statement that is tested in the research to check its authenticity.
There are two major types of hypothesis are as follow:
1. Null hypothesis
2. Alternate hypothesis
1. Null hypothesis:-
A null hypothesis is a statistical hypothesis in which there is no significant difference exists
between the set of variables. It is the original or default statement, with no effect often
represented by Ho (H-zero) It is always the hypothesis that is tested. It denotes the certain
value of population parameters such as µ, s, p. A null hypothesis can be rejected, but
accepted just on the basis of a single test.
Ho:- There is no significant relationship or family not having health insurance policy in
rural area.
2. Alternate hypothesis
A statistical hypothesis used in hypothesis testing, which states that there is a significant
difference between the set of variables. It is often referred to as the hypothesis other than
the null hypothesis, often denoted by H1 (H-one). It is what the researcher seeks to prove
in an indirect way, by using the test. It refers to a certain value of sample statistic, e.g. x ,
s , p.
The acceptance of alternative hypothesis depends on the rejection of the null hypothesis
i.e. until and unless null hypothesis is rejected , an alternative hypothesis cannot be
accepted.
H1:- There is significant relationship or family which having health insurance policy in
rural area.
IMPORTANCE
Under RSBY, the insurance companies also create awareness programs about the importance of
health insurance in rural areas. Almost 130 million people are insured under this scheme and
approximately 36 million families have received smart cards for their free medical treatment.
 Many middle and lower socio economic class families are crushed under debts at the time of
hospitalization due to lack of health insurance. Health financing is an important part of
broader efforts to ensure social protection in health. However “health insurance” is still an
unknown word for most rural people. So this study was undertaken with the objective to assess
the awareness about health insurance in rural areas and to describe the socio demographic
characteristic of respondents.
 The rural population are more vulnerable to risks such as illness, injury, accident and death
because of their social and economic situation. There is need to provide financial protection to
poor families for the same reason. That’s why awareness of health insurance is most important
on rural areas.
 Health insurance could be a way of removing the financial barriers and improving
accessibility to quality medical care by the poor and also effective social security mechanism.
 Buying a health insurance policy for yourself and your family is important because medical
care is expensive, especially in the private sector.
 Hospitalization can burn a hole in your pocket and derail your finances. It will become even
tough, if the person who brings in the money, is now in a hospital bed. All this can be avoided
by just a paying a small annual premium which would lessen your stress in case of medical
emergencies.
 A good health insurance policy would usually cover expenses made towards doctor
consultation fees, costs towards medical tests, ambulance charges, hospitalization costs and
even post-hospitalization recovery costs to a certain extent.

SCOPE OF HEALTH INSURANCE
Rising healthcare costs and increasing longevity has created awareness about the
importance of created awareness about the importance of health insurance. At a
very rudimentary level, health insurance is an insurance, which covers for the
medical expenses incurred by you. Similar to other forms of insurance, you can
take a policy under which a fixed sum is covered to protect yourself against stated
healthcare risks as mentioned in the policy.
Like every other insurance policy, health plans too come with conditions.
Usually, to avail of any benefits under the health insurance policy, the
policyholder needs to be hospitalized for at least 24 hours. The policy typically
covers for room or boarding expenses, nursing expenses, surgeon fee,
physician, operation theater charges, medicines, medical tests and a lot many
other necessary expenses. Depending on the kind policy purchased it might also
cover pre and post hospitalization expenses and further help you with certain
amount of daily cash allowance during hospitalization under ‘hospital cash’
benefits.
In fact, most policies even have a waiting before certain medical conditions are
covered by them, also known as pre-existing diseases. Treatment related to pre-
existing diseases is usually excluded for a fixed period or waiting period, which
could be form two to four year depending on the policy type. As with every
insurance plan, there are exclusion when it comes to health insurance plans.
Among the exclusion that distinctly stand out include dental treatment and
prescription glasses in case of defect in eyesight.
Another important exclusion is sexually transmitted disease (STD). Treatment

cost for such infections are usually excluded under the permanent policy. For
you to benefits the most from your health insurance plan, it is recommended
you know what your policy covers and what is excluded.
CHAPTER 2
SURVEY OF
LITERATURE

LITERATURE REVIEW
The review of literature for health insurance in India is important as consumer behaviour changes
with passage of time and in order to have knowledge about the various authors review findings
and suggestions on the concerned topic. So, the review of literature for the study is as follows:
R. P. Ellis et al., (2000) in the article,―Health insurance in India- Prognosis and Prospects‖ tries to
review a variety of health insurance system in India, their limitation and role of the general
insurance corporation as an important insurance agency. They focused the need for a competitive
environment. This paper recommends improvement in delivery of health care and its financing,
efficient functioning of the ESIS and CGHS and amending the mediclaim system and alteration in
exclusion clause.
Ramesh Bhat and Falan Reuben (2001) in their article,―Analysis of claim and
reimbursements made under mediclaim policy of general insurance corporation of India‖ analyses
621 claims and reimbursements data relating to policy beginning year 1997-98 and 1998-99 of
Ahmadabad. They found that number of policies and premium collected have grown 30% during
1998- 00 and 50% during 1999-2000.
B.Reshmi et al. (2007) in their research stated that the middle and low socio-economic groups are
a potential market to be tapped as they are ready to spend a reasonable amount as premium payable.
The private insurance players should try to earn trust in the people as most of the respondents
preferred government health insurance schemes. And to develop a viable health insurance scheme,
it is important to understand people’s perceptions and develop a package that is accessible,
available, affordable and acceptable to all sections of the society.
P. Jain et al., (2010) in his paper,―Problems faced by the Health Insurance Policyholders of
Different Public and Private Health Insurance Companies for Settlements of their Claims‖ Measure
the problem faced by customers. The objectives were to study reason for refusal of claim,
satisfaction level of customer and problems faced by them in getting their claim.
Ravikant Sharma (2011) in his paper,―A Comparison of Health Insurance Segment- India vs.
China‖ seeks to compare both the economies India and China on health insurance aspect. Both
economies have huge potential of health insurance and 45% of world‟s population lives in both the
countries.
J. Jaypradha (2012) in the article, ―Problems and prospects of health insurance in India‖
highlighted that the health insurance sector in India has registered 30% growth rate in 2008- 09.
The penetration of health insurance in India had risen to 4.8%, in 2008 from 1.2% in ISSN: 2349-
5677 Volume 1, Issue 12, May 2015 24 1999-2000. The average medical expenditure of an Indian
household is 6.7% of the annual income.
JangatiYellaiah (2012) concluded in their study as the determinants of awareness of health

insurance were: religion, type of the family, education, occupation, annual income. Higher
education and higher annual income increase awareness of health insurance. The health insurance
companies should come out with clear cut policy details, as many of the respondents had vague
ideas about the various benefits and risks involved in a policy. It is important to understand
people’s perceptions and develop a package that is accessible, available, affordable and acceptable
to all sections of the society.
K. Selva Kumar and Dr. S. Vijay Kumar (2013) in their article, ―Attitude of policy holders in
the direction of administration of general insurance companies with orientation to Madurai region‖
The study reveals that 23% policy holders belongs to low level of attitude, 46% to medium level
of attitude and 31% to high level of attitude. There is an important relationship between ages, sex,
education, and marital status, type of family, community and level of their attitude headed for
administration of services of public sector general insurance companies holds good.
R. Amsaveni and S. Gomathi (2013) made an attempt to find out mediclaim policy holder
satisfaction, to recognize the reason for preferring mediclaim policy to safe guard themselves and
stay away from future risk, majority of the respondents have taken personal scheme to employees.
The major problems faced by the respondents are lack of timely communication and limited list of
hospitals covered by the health insurance providers.
Maheshkumar L choudhar et al. (2013) in their research highlighted that awareness regarding
health insurance is poor (57.25%); therefore awareness creation is needed. Education, socio-
economical status and occupation were favourable determinants for opting health insurance.

Reason for opting for health insurance was mainly related to medical care and financial aspects.
Media seemed to have played an important role in dissemination of information. This calls for
effective information, education, and communication activities which will improve understanding
of insurance by the public.
B. Muthukrishnan et al. (2013) in their report mentioned that there is an immense need for
massive propaganda to develop consciousness among the people regarding the need for financing
health care in context of high out-of-pocket expenses on health. If we can successfully use
insurance in covering our health hazards we might create a headway in front of the entire south-
east Asia to come up with a solution to this formidable challenge to the society.
B.RamakrishnaGoud et al. (2014) in their study highlighted awareness regarding health

insurance is low among households of rural India. The prevalence of Health Insurance among rural
India is so and is dominated by Community Based Health Insurance. Most Popular Health
Insurance Scheme was Yeshaswini insurance scheme. Effective information, education and
communication activities will improve understanding of insurance by the public and hence help in
developing a market for health insurance.

CHAPTER 3
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
DEFINITION OF RESEARCH
D. Slesinger and M. Stephenson in the Encyclopedia of social science define the research as ―the
manipulation of things, concepts or symbols for purpose of generalizing to extend, correct and
verify knowledge, weather that knowledge aids in construction of theory or in the practice of an
art.‖ Inshort, there search for knowledge through objective and systematic method of finding
solution to a problem is research. The systematic approach concerning generalization and the
formulation of a theory is also research.
1) METHODS OF DATA COLLECTION:
There are two methods of collection of data
1. Primary
2. Secondary
PRIMARY DATA
The main purpose of collection of primary data was to prepared questionnaire. The researcher
tried to find out the awareness and buying pattern of health insurance through:
Personal Approach
 Surveys
 Questionnaire
SECONDARY DATA
Consists of published data collection through
 Websites
 Newspapers
 Publish research papers
SAMPLE SIZE:-
 The sample size of the survey was 100 from different family of the area kalmeshwar dist
Nagpur.
 The respondents were ensured complete confidentiality of their opinion and view.
 Data use of 100 people live in the kalmeshwar nere by area (rural).

HEALTH INSURANCE IN INDIA
Health insurance in India is a growing segment of India's economy. In 2011, 3.9% of India's
gross domestic product was spent in the health sector. According to the World Health Organization
, this is among the lowest of the BRICS (Brazil, Russia, India, China, South Africa) economies.
Policies are available that offer both individual and family cover. Out of this 3.9%, health insurance
accounts for 5-10% of expenditure, employers account for around 9% while personal expenditure
amounts to an astounding 82%.In the year 2016, the NSSO released the report ―Key Indicators
of Social Consumption in India: Health‖ based on its 71st round of surveys. The survey carried
out in the year 2014 found out that, more than 80% of Indians are not covered under any health
insurance plan, and only 18% (government funded 12%) of the urban population and 14%
(government funded 13%) of the rural population was covered under any form of health insurance.
For the financial year 2014-15, Health Insurance premium was 20,440 crores

HISTORY OF HEALTH INSURANCE

Launched in 1986, the health insurance industry has grown significantly mainly due to
liberalization of economy and general awareness. According to the World Bank, by 2010, more
than 25% of India’s population had access to some form of health insurance. There are standalone
health insurers along with government sponsored health insurance providers. Until recently, to
improve the awareness and reduce the procrastination for buying health insurance, the General
Insurance Corporation of India and the Insurance Regulatory and Development Authority (IRDA)
had launched an awareness campaign for all segments of the population.
In India insurance has a deep rooted history; it is mentioned in writings of Manu (Manusmithi),
Yagnavalkya (Dharmashastra) and Kautilya (Arthasastra). It has discussed the pooling of
resources that could be shared during the calamities such as fire, floods, epidemics and famine.
The fossils of Insurance can be traced in the form of marine trade loans and carrier’s contracts.
Insurance in India has evolved over time from other countries especially from England. The year
1818 saw the life insurance business in India with the establishment of Oriental life insurance
Company in Calcutta, this company however failed in 1834. In 1829, the Madras Equitable had
begun transacting life insurance business in the Madras presidency. British insurance act (1870),
the Bombay Mutual (1871), Oriental (1874) and empire of India (1897) were started in Bombay
presidency. This era was dominated by foreign insurance offices. Indian life Assurance act (1912)
was the first statutory measure to regulate life business. In (1928) the Indian insurance companies
act was enacted to enable the government to collect statistical information about life and non-life
business transacted in India by Indian and foreign, insurers. In 1938 with a view to protect the
interest of insured public, the earlier legislation was consolidated and amended by the insurance
act, 1938 with a effective monitoring and control over various activities ofinsurers . The Insurance
Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of
insurance companies and the level of competition was high. There were also allegations of unfair
trade practices, therefore Government of India, decided to nationalize insurance business, initially
the life insurance business in 1956, and followed by the nationalization of the General insurance
inl973. Accordingly, the Life Insurance Corporation of India and the General Insurance
Corporation of India, with its four subsidiaries, namely, the National Insurance Company Ltd.,
the New India Insurance Company Ltd., the Oriental
Insurance Company Ltd., and the United India Insurance Company Ltd., were formed. The LIC
absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign
insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the
private sector to increase the penetration of insurance, to improve customer service, to enhance the
efficiency of insurance industry and to bring down the cost through fair competition. In 1993, the
government set up a committee under the chairmanship of Mr. R.N. Malhotra to propose
recommendations for the desirable reforms in Insurance sector. The history of general insurance
dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and
commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance
in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in
Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first
company to transact all classes of general insurance business. 1957 saw the formation of the General
Insurance Council, a wing of the Insurance Association of India. The General Insurance Council
framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the
Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff
Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business
(Nationalization) Act, general insurance business was nationalized with effect from 1st January,
1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and
the United India Insurance Company Ltd. The General Insurance Corporation of India was
incorporated as a company in 1971 and it commence business on January 1st 1973. Malhotra
committee submitted its report in 1994 wherein, it recommended that private sector be permitted to
enter the insurance industry. They stated that foreign companies be allowed to enter by floating
Indian companies, preferably a joint venture with Indian partners. Following the recommendations
of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority
(IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The
IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include
promotion of competition so as to enhance customer satisfaction through increased consumer choice
and lower premiums, while ensuring the financial security of the insurance market. The IRDA
opened up the market in August 2000 with the invitation for application for registrations.

Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame
regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed
various regulations ranging from registration of companies for carrying on insurance business to
protection of policyholders’ interests. Today there are 24 general insurance companies including the
ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in
the country. History of health insurance in India began with inception of the Employees state
insurance act, 1948. It was introduced as a social security blanket for workers working in organized
sector.. Employee’s state insurance scheme (ESIS) provides comprehensive health services through
a network of its own dispensaries and hospitals, supplemented by authorized medical attendants and
private hospitals to serve needs which cannot be met by its own networks. The coverage includes
OPD and IPD services, and a large variety of cash benefits to compensate for loss of pay and other
eventualities. The scheme is largely financed through contribution from employers and employees,
which is supplemented by the central and state governments. The ESIS covered about 55 million
beneficiaries in 2009- 2010. The ESIS was soon followed by a scheme for central government health
schemes (CGHS), which was introduced in 1954 as a contributory health scheme to provide
comprehensive medical care to the central government employees and their families. CGHS has
over 44 lakh beneficiaries including current and former central government employees, members of
parliament, Supreme Court and high court judges. CGHS is largely financed by the government of
India budget, while the government employees also contribute a nominal amount ranging from Rs
15 to Rs 150 per month from their salaries based on the scale of pay. Here also, the coverage is
comprehensive and includes both outpatient care and hospitalization. Outpatient care is provided
through CGHS dispensaries and also utilizes the facilities of the government and approved private
hospitals to provide inpatient care. Long before nationalization of non-life insurers were providing
health cover, particularly on group basis with varied terms and conditions. The first attempt to
standardize the terms and conditions of health insurance was made by GIC in 1986 with the launch
of Mediclaim policy. Mediclaim is a voluntary health insurance scheme and covers for
hospitalization with certain exclusions like pre-existing diseases, pregnancy and child birth, HIV-
AIDS, etc. It is an indemnity cover, where reimbursement of expenses is provided to the insured or
more recently, directly through the mechanism of third party administrators. The maximum sum
insured available under mediclaim,

which used to be Rs 86000 in 1986, became 1 Lakh in 1996 and finally it is 5 Lakhs presently. A
major Innovation in the post - 2000 period, is the availability of cashless facility through the agency
of TPAs or through direct tie-ups of insurers with hospitals, where the insured need not make any
payments to the hospitals and the same is settled directly by the insurer or through TPA with the
hospital. The insurance industry also innovated and launched certain other health insurance related
products, to fill in the gaps which were not addressed by the mediclaim policy. Even prior to the
opening up of insurance sector a number of products like Jan Arogya, BhavisyaArogya, senior citizen
unit plan, LIC Asha Deep, Jeevan Asha and NavPrabhat etc. the speed of innovations increased with
the entry of standalone private health insurance companies in the market since 2006.

IRDA ANNUAL REPORT
IRDAI (Obligations of Insurers to Rural and Social Sectors) Regulations, 2015 have been notified
on 24th August, 2015 and shall supersede the IRDA (obligations of Insurers to Rural and Social
Sectors) Regulations, 2002. The obligations stated in these regulations shall be applicable from
F.Y 2016-17.
The obligations of the insurers as per regulatory provisions are as under:
Rural sector
(a) In respect of a Life Insurer, the following percentages of the total number of policies written
in the respective years shown below:
(b) In respect of a General Insurer, the percentage of gross premium income written direct in the
respective years is shown below: -

(C) In respect of Standalone Health Insurers, 50% of the obligations specified for General Insurers.

2016-17 2017-18 2018-19
SOURCE:- PUBLISH ANNUAL REPORT OF IRDA


2017-18 2018-19


Notes:
This information and chart has been shown and taken for this project to revel nation vise
current information about Health insurance policy taken by citizen of India and still there is need
of spreading awareness about the same among people.
In Comparison with other developed and developing countries, Indian peoples are not
much aware of Health Insurance and the reason might be due to lack of awareness and financial
unavailability. Especially those who work under private organization and unorganized sector
including rural areas people etc.
Major population of the country still not able to afford medical and hospital related bill for their
family members and this is the only reason that government and private sector companies including
social agencies should spread importance of it among rural and urban people. Although
government of India providing and launched various scheme in this direction but still there is a
few problems either in their implementation of policy or management that rural areas people are
not so much aware about the same and they are not go for purchasing such policy .

CHAPTER 4
DATA
INTERPRETATION

DATA ANALYSIS AND

INTERPRETATION
Data collected from respondents:
1. General information ( Personal and family information)
Table 1: General Information
Sr. No. Parameters Variables Percentage
1 Age Below 20 0
21-40 55
41-60 6
Above 60 39
2 Gender Male 82
Female 18
3 Married status Married 96
Unmarried 4
4 Educational status SSC 61
HSC 27
Graduate 12
Post Graduate 0
5 Occupation type Govt. Employee 1
Corporate Employee 3
Private Employee 51
Business 45
Man/Farmer
6 Income PA Below 1Lakh 92
1 to 3 Lakh 6
3 to 5 Lakh 2
Above 5 Lakh 0

DATA ANALYSIS
survey has been done to know the awareness, preference and consumption pattern of health
insurance. By using questionnaire method.
SAMPLE SIZE:- 100
Percentage of having awareness among the people about health insurance policy
at kalmeshwar.
Parameters Percentage
Yes 48%
No 52%
52
%
51
Percentage(
50
%
49
%
48
%
Ye No
Responden
Figure 2.1
INTERPRETATION:-
Respondents were asked about their awareness of health insurance obtained results
shown in figure 2.1 It is clear from figure 2.1 that 48% of people are aware about health
insurance and 52% people not have any idea about health insurance policy.

Percentage of people to have health insurance policy.
Yes 19%
No 81%
percentage(
Ye No
Responden
Figure 2.2
INTERPRETATION:-
The analysis figure 2.2 shows that the 19% respondent having the health insurance
policy and 81% respondents don’t have any kind of insurance policy.

Having any health insurance policy for you and your family member?
Yes 19%
No 81%
percentage(
Ye No
Responden
Figure 2.3
INTERPRETATION:-
Respondents were asked about having any health insurance policy or not , obtained
results shown in figure 2.3 19 % respondents having health insurance policy in their
family and 81% respondents don’t have any kind of insurance policy.

Reason for not having health insurance policy in family.
Sr. No Responses Percentage

1 Lack of awareness 51%
2 Premium is High 42%
3 No need 7%
50
%
percentage(
40
%
30
%
20
%
lack of premium is no
high
Figure 2.4
INTERPRETATION:-
The above figure 2.4 shows that the 51% respondents didn’t take any health
insurance policy because of lack of awareness, 42% respondents didn’t take
insurance because of premium is high and 7% respondent is no need.

Number of year, people took policy.

1 Below 1 year 0%
2 1-5 year 33%
3 5-10 year 31%
4 Above 10 year 36%
40
%
percentage(
Below 1 1-5 5-10 Above 10

Responden
Figure 2.5
INTERPRETATION:-
The above figure 2.5 it is observed that the maximum people took their policy above 10 year.
33% people took their policy 1-5 year and 31% people took their policy 5-10 year. For acquiring
policy for number of years is always beneficial for family/policy holder in terms of low premium
continuous service and safety.

Weather you policy has covered all family member?
Yes 19%
No 81%
percentage(
Ye No
Responden
Figure 2.6
INTERPRETATION:-
From above observation (19% people who said their they have purchase health insurance
policy for their family) only covered all family members remaining 81% people don’t have
purchase any kind of policy.

What is your annual premium?

1 Below 5000 3%
2 5000-10000 10%
3 10000-25000 6%
4 Above 25000 0%
10
%
9
%
8
percentage(
%
7
%
6
%
5
%
4
below 5000- 10000- above
Responden
Figure 2.7
INTERPRETATION:-
The above figure 2.7 observed that the policy taken by 19% people out of 19 people said
out of 19% people said due to financial stress and status they acquired moderate level
premium policy and only 6% people out of 19% people purchase or spend more amount
for premium.

Do you think coverage of your policy is enough for you?
Yes 16% (Out of 19 person)
No 84%
percentage(
Ye No
Responden
Figure 2.8
INTERPRETATION:-
From the above figure 2.8analyse that the 16% respondent said that they are satisfied in
the coverage of policy for their family is enough out of 19 (those who are purchased policy)
84% people don’t have purchase any kind of policy.

Do you have free health checkup in your policy?
Yes 19%
No 81%
Percentage(
Ye No
Responden
Figure 2.9
INTERPRETATION:-
The above figure 2.9 it is observed that 19% people (Those who have purchase policy)
have include in their policy free health checkup.

Do you wish to take low premium policies with limited benefits high premium policies with
more benefits?
Low premium policies with limited benefits. 92%

High premium policies with more benefits. 8%
Percentage(
0%
low premium policies high premium policies with
with more
Responden
Figure 2.10
INTERPRETATION:-
From the above figure 2.10 this is observed that maximum respondents choose low
premium policies with limited benefits(92%) policy with the wish of purchasing health
insurance policy due to their financial condition and only 8% respondents said that they
are ready to purchase policy with high premium with more benefit(8%).

Are hospital network available in your nearby area as per you policy detailed?
Yes 0%
No 100%
Percentage(
0%
Ye No
Responden
Figure 2.11
INTERPRETATION:-
From the above figure 2.11 as this project/study was done in the area of kalmeshwar
(rural) they don’t have any multispecialty or hospital in nearby area so respondent have
only one option to find out hospital available in the Nagpur.

How is the service offered by health insurance company?

1 Poor 3%
2 Average 10%
3 Good 6%
4 Can’t say 81%
90
%
80
%
70
Percentage(
%
60
%
50
%
40
%
poor average goo can't

Responden
Figure 2.12
INTERPRETATION:-
The above figure 2.12 it is observed that policy taken by 19% people (i.e.19 out of) only 10%
people said that whatever services they got from health insurance company, that is an average &
only 6% people said good and remaining 3% people said poor.

FINDINGS
1. Awareness about health insurance policy among kalmeshwar rural area people are too
less.
2. Due to having low financial condition respondents not purchase any health insurance
policy for them and their family.
3. But if having offered low premium policy by the company with proper guidance
customer are ready to purchase.

CHAPTER 5
SUGGESTIONS

SUGGESTIONS
1. Introduction of common pool for terminally people who do not have access to any kind of
health insurance
2. Life insurance companies to develop underwriting guidelines and sell health insurance
policies because of their wide distribution network.
3. Multiple health insurance products should be offered at various price points to the
customers.
4. Local clinic and hospital nearby of kalmeshwar area and including ―swasth aarogya
Kendra‖ should spread awareness about health and having about health insurance policy
to people.
5. They have number of policy issued by central government on health/medical policy so
people should go for buy it for minimizing risk of costly medical bills.

CHAPTER 6
CONCLUSION

CONCLUSION
This paper makes an attempt to understand the awareness, preference and consumption
pattern of health insurance plan.
 The result of study shows that the annual premium is the most important factor
that influence the decision or choice of health insurance plan.
 Those who have purchase health insurance policy out of that maximum
percentage of people are satisfied with services provide by the company.
 In the kalmeshwar rural area people awareness about health insurance policy is
too less.

LIMITATIONS OF RESEARCH
 The research was based on primary collection of data, there may be chances of
human error and bias.
 The research was dependent on the information provided by the respondent who
were every reluctant in providing right information and were careless.
 As associated with every project, time and money were the major limitations with
project.
 Due to unwillingness of providing any information, the respondents filled the
questionnaire casually.
 The project is purely based on verbal meetings with the respondents.
 Non-co-operative behavior of respondent was a big problem in this survey.

CHAPTER 7
REFERENCES

BIBLIOGHRAPHY
www.mediindia.net
www.healthinsuranceindia.org
www.policymantra.com

ANNEXURE
Name :
Status: a) Married b) Unmarried
Gender : a) Male b) Female
Age :
a) Below 20yr b) 21-40yr
c) 41-60yr d) Above 60yr
Occupation :
a) Govt. Employee b) Corporate Employee
c) Private Employee d) Business Man/Famer
Educational Qualification :
a) SSC b) HSC
c) Graduate d) Post Graduate or Above
Income PA :
a) Below 1Lakh b) 1 to 3 Lakh
c) 3 to 5 Lakh d) Above 5 Lakh
1) Are you aware about Health Insurance products?
a) Yes b) No
2) Do you have it?
a) Yes b) No
3) Do you have any Health Insurance policy for you or your family member?
a) Yes b) No
4) Why you didn’t take any Health Insurance Policy for you and your family fill the now?
a) Lack of awareness b) Premium is high c) No need

5) For how many years you took policy for your family?
a) Below 1yr b) 1-5yr
c) 5-10yr d) Above 10yr
6) Weather your policy has covered all family member?
a) Yes b) No
7) What is your Annual Premium?
a) Below 5000 b) 5000-10000
c) 10000-25000 d) Above 25000
8) Do you think coverage of your policy is enough for you?
a) Yes b) No
9) Do you have Free Health Checkup in your policy?
a) Yes b) No
10) Do you wish to take low premium policies with limited benefits high premium policies with
more benefits?
a) Low premium policies with limited benefits
b) High premium policies with more benefits
11) Are Hospital Network available in your nearby area as per your policy details?
a) Yes b) No
12) How is the service offered by the Heath Insurance company?
a) Poor b) Average c) Good d) Excellence





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NIT SCHOOL OF MANAGEMENT/

NAGPUR INSTITUDE OF TECHNOLOGY

Survey No. 13/2, Mahurzari, Katol Road, Nagpur – 441 501

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 1

Dr. Vaibhav Bhalerao Dr .Mukesh Patil

Project Guide I/c Director

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 2

APPROVAL OF PROJECT PROPOSAL

Name of Student : - Premila Ramaji Sushir

Enrollment Roll No : - 2015016600034293

College : - NIT Graduate School of Management,Nagpur

Address of Student : - Katol Road, Near by Regent School, Gajanan colony,

Subject Area : - Finance Management

Name of Guide : - Dr. Vaibhav Bhalerao

Prof. Dr. Vaibhav Bhalerao Dr Mukesh Patil

Faculty & Guide I/c Director

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 3

Premila Ramaji Sushir

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 4

I am extremely thankful and pay my gratitude to my faculty Dr. Vaibhav Bhalerao

Premila Ramaji Sushir

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 5

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 6

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 7

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 8

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 10

OBJECTIVE OF THE STUDY

 To assess the individual awareness about health insurance.

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 11

A hypothesis is a testable prediction which is expected to occur. It can be a false or a true

There are two major types of hypothesis are as follow:

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 13

SCOPE OF HEALTH INSURANCE

Another important exclusion is sexually transmitted disease (STD). Treatment

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 15

JangatiYellaiah (2012) concluded in their study as the determinants of awareness of health

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 17

B.RamakrishnaGoud et al. (2014) in their study highlighted awareness regarding health

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 18

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 19

1) METHODS OF DATA COLLECTION:

There are two methods of collection of data

Consists of published data collection through

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 21

HEALTH INSURANCE IN INDIA

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 22

HISTORY OF HEALTH INSURANCE

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 24

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 25

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 26

IRDA ANNUAL REPORT

The obligations of the insurers as per regulatory provisions are as under:

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 27

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 28

2016-17 2017-18 2018-19

SOURCE:- PUBLISH ANNUAL REPORT OF IRDA

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 29

SOURCE:- PUBLISH ANNUAL REPORT OF IRDA

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 30

SOURCE:- PUBLISH ANNUAL REPORT OF IRDA

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 31

SOURCE:- PUBLISH ANNUAL REPORT OF IRDA

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 32

“A STUDY ON AWARENESS OF HEALTH INSURANCE POLICYAMONG RURAL 33