COMPARATIVE ANALYSIS OF

INSURANCE POLICIES OF APOLLO MUNICH

PURVI VAISH

022161708

BBA Vth SEM.

Ansal Institute of Technology

(Guru Gobind Singh Indra Prastha University)

CERTIFICATE

This is to certify that the project titled “Comparative Analysis of the Health Insurance Policies of Apollo Munich” submitted by Purvi Vaish (022161708) of BBA (Vth Sem.) of Ansal Institute of Technology affiliated to GGSIP University, Delhi is original and authentic. This has been carried under my supervision and guidance.

Supervisor

EVALUATION OF THE PROJECT

This is to certify that the project “Comparative Analysis of the Health Insurance Policies of Apollo Munich” submitted by Purvi Vaish (0221061708) of BBA, Semester Vth of Ansal Institute of Technology affiliated to GGSIP University, Delhi has been examined by the following examiners.

Internal Examiner External Examiner

ACKNOWLEDGEMENT

The satisfaction of euphoria that accompany the successful completion of any task would be incomplete without mentioning the names of people whose constant guidance and encouragement has crowned all our efforts with success.

I take this opportunity to express my deep gratitude to “Mrs. Monika Bhatia”, Faculty WISDOM for providing us an opportunity to carry out a project and also for his encouragement and valuable guidance without which this report wouldn’t have been possible.

I would specially like to thank Mr.Shree Nivas, my corporate guide and mentor for helping me with the project and providing relevant information. He spared his valuable time for discussing and resolving various issues that came up from time to

time.

Last but not the least I am thankful to my family and friends who rendered their helpful advice wherever required and acted like a catalyst in the moments, when I felt lost while not getting the relevant matter for the report.

INTRODUCTION

This Report on Apollo Munich is done to find out certain objectives regarding strategic approach adopted by Apollo Munich to stand alone in the competitive Health Insurance market. The study aims to analyze that with the in the competition in the Health Insurance services, how is the company booming. Policies play a vital role in success of the any company therefore it becomes essential for any Health Insurance company to keep a check on the profitability given by every policy.

Further the company wants to be a hassle free and user friendly health insurance company.

Aims to make healthcare and health insurance easy and uncomplicated Apollo Munich insurance co. has tied up with a network of 4000+ hospitals in India Customers can avail the facility of cashless hospitalization by displaying the health

card issued to the policy holder Easy Health Plan offers coverage for healthcare needs of insured and also keeps a

check on the health of the customer. 3 variants of Easy Health plan: Standard Plan which has the lowest premium; then

Premium Plan and Exclusive Plan which has the highest premium. Their health insurance plan starts from just Rs. 3 per day and more depending upon

one’s needs

LITERARURE REVIEW

COMPANY’S PROFILE

Apollo Munich

Apollo Munich Health Insurance is a joint venture between The Apollo Hospitals Group, its associates and Munich Health, world leaders in health insurance, a company of the Munich Re Group. The company operates as a standalone health insurer and offers innovative Health, Accident and Travel insurance solutions on a PAN India basis

Chief Executive Officer

Mr. Antony Jacob

Staff Presently the headcount is over 600 across 39 offices.

Product portfolio

As a first step towards bringing in innovative insurance solutions, Apollo Munich has launched its first generation products such as: Easy Health Individual and Family Health Plans (In-Patient Hospitalization Covers) Easy Health for Groups Overseas Travel & Health Covers – individual, family and groups Personal Accident Cover – Corporate and Individual Insure Health – An over the counter health insurance Maxima – India’s first 360 degree health insurance Optima Cash – A daily hospital cash product with maximum benefits.

Apollo Munich promises to constantly engage itself in developing innovative health and travel insurance solutions catering to various insurance needs that may exist in the market. Distribution Network

Distribution Network

Apollo Munich uses the following distribution channels to map the country and make their insurance solutions available such as:

Agents Corporate Agents Strategic Partners Travel Agents Sales Associates and Direct Sales Force

Apollo Munich currently has a network of over 12,000 agents across

the country.

Apollo Munich also has exclusive tie-ups with NBFC’s for distributing their insurance solutions.

The other channels that Apollo Munich employs are database marketing, Internet etc. across the country; it has tied-up with travel portals for domestic travel insurance along with a tie-up with “www.Insurancemall.in” for selling its products through internet.

About Apollo Hospitals groups

Mr. Reddy started the Apollo Group of Hospitals to change the way medical care was perceived in India. The Group started with only 150 beds in a hospital in Chennai, in 1983. The number has currently gone up to 8065, world-over. At present the Apollo Group of Hospitals own and manage more than 42 hospitals, more than 600 retail pharmacies, 60 primary care clinics.

The supplementary interests of the healthcare group include, overall well-being and disease management, IT in health care, clinical research, holistic medicine, Medical BPO, Medical and paramedical education and third party administration of health insurance.re clinics.

About Munich Health

 Munich Health, which is a new business segment of Munich Re, has taken on the responsibility of making the world a healthier place, by providing easy healthcare solutions to one and all across the globe. Munich Re, a German based insurance and re-insurance company,is the world’s largest re-insurer.

Their vision is as follows: We are the first choice for health risk solutions worldwide.

Munich Health works towards the development of new means of alliances between insurance and medical care. The company supports public-private partnerships, the establishment and reform of public healthcare systems, new service and product portfolios for both, primary insurance and consulting services.

About Apollo Munich

Apollo Munich Health Insurance Co. Ltd., erstwhile called Apollo DKV Insurance Company, is a joint venture between Apollo Hospitals Group and Munich Health. The joint venture is poised to make good the conviction of both the partners that Indian health insurance market is on the brink of explosive growth. Apollo Hospitals Group is the largest integrated health provider in Asia and Munich Health is the new business segment of Munich Re, a Germany based Reinsurance Company.

Apollo Munich has its headquarters in Gurgaon, Haryana.  Apollo Munich India came into being because of their re-branding purpose.  This is also the first time that a leading hospital group has entered into a completely different entity, namely health insurance.

The name change from Apollo DKV Insurance to Apollo Munich Health Insurance is seen as a re-branding exercise, since in peoples mind Apollo name was very popular and synonymous with quality health care but the same could not be said about DKV. The company has strong growth plans and with their expertise in the industry, they are planning to penetrate deeper in the retail insurance market.

“Let’s Uncomplicate” is the new motto for Apollo Munich Medical Insurance and the company wants to simplify all aspects of health insurance for clients; whether it is buying, understanding the contingencies, or making claims.

Vision

Company’s vision is to be a trusted leader in the health insurance sector by providing innovative solutions to the citizens of India Our VISION is to constantly introduce innovative health insurance and wellness solutions that meet customer needs. Our product philosophy emphasizes the incorporation of wellness and prevention components into health insurance with the goal of moving the current market, which is largely addressing "curative" needs, to a "preventive" focus.

Mission

Company’s mission is to constantly introduce innovative Health Insurance and Wellness solutions that meet customer needs.

Build an organization on the principles of transparency, trust and integrity. Create opportunities for our employees to learn and grow in an enjoyable work

culture. Constantly deliver on our commitments to all the stakeholders.

Values

Inspiring passion Delivering on our promises Being responsive to our customers Thinking and acting transparently

Apollo Munich Health Insurance Co Ltd. (Apollo Munich), the comprehensive health insurance company, today announced the launch of its new advertising campaign titled “Let’s Uncomplicate”. Beginning on January 5, 2010, the mass media campaign aims to simply communicate health insurance – from buying it, to understanding what will be covered, to making claims for Indians across the country.

The new campaign focuses on the easy process that Apollo Munich offers for people seeking comprehensive health insurance for themselves and their loved ones. A series of four commercials will showcase Apollo Munich as a user-friendly and hassle-free health insurance company. The advertisements will be aired across all news and entertainment channels and will tackle the general concerns faced by people when it comes to healthcare.

Speaking about the new campaign, Mr Antony Jacob, Chief Executive Officer of Apollo Munich, said “As a niche player in the health insurance sector, Apollo Munich in interested in simplifying the insurance process for every Indian citizen who is interested in taking care of their family’s future. With this new advertising campaign, we want to show how easy and friendly insuring your health can be. All our policies are comprehensive and cover almost every gamut of the health needs of individuals. As the campaign states, we wish to take the fear out of faces, the jargon out of words, the bitter out of medicine and trouble out of

treatment. Apollo Munich aims to uncomplicate health insurance in India.”

Management Profile

SNO Name of the person Role/Designation1. Dr. Pratap C. Reddy Chairman2. Ms. Shobana Kamineni Whole Time Director

3. Ms. Suneeta Reddy Director4. Dr. Wolfgang Strassl Director5. Dr. Wolfgang Diels Director6. Mr. Antony Jacob Whole Time Director & CEO7. Mr. K. Srikanth CFO & Company Secretary8. Mr. Ravi Vishwanath CMO9. Mr. Krishnan Ramachandran CIO10. Mr. Herbert Meister Consultant Actuary

Dr. Prathap C.Reddy, Chairman, Apollo Hospitals Group

Two and a half decades ago, Dr. Prathap C Reddy lost a patient who could not make it to Texas for an open-heart surgery. This was the turning point in the Indian Healthcare Industry. Today, people in the Indian subcontinent have the opportunity to receive the best that healthcare has to offer worldwide.

Driven by a deep urge to provide affordable world-class medical infrastructure in India, Dr. Reddy opted to give up his successful practice in the United States of America and returned to India in the seventies.

In order to provide improved, accessible and affordable healthcare for the millions in the country, Padma Bhushan Dr. Reddy campaigned relentlessly for privatization of Health Insurance in India. He has been instrumental in the amendment of various legislations including amendment of the legislation for cadaver transplants in the country. Over the last decade, Apollo under the stewardship of Dr. Reddy has demonstrated that Indian skills are equivalent to the best in the world.

He is a much feted person and his awards include:

The Harvard Business School had published a case study on the achievements of Apollo Hospitals in the year 1996. Late Mother Teresa awarded Dr. Reddy the Citizen of the Year award for the year 1993-94

The Royal College of Surgeons, Edinburgh awarded him with Fellowship to The Royal College of Surgeons.

Dr. Prathap C Reddy was also presented with the Sir Nilrattan Sircar Memorial Oration Award for medical excellence by JIMA in the year 1998. The same year, he was nominated by Business India as one of the Top Fifty personalities who have made a difference to the country in the fifty years since Independence.

The Ernst & Young Entrepreneur of the Year Award was conferred on Dr. Reddy on 27th September 2001 at Mumbai.

The Lifetime Achievement Award was conferred on Dr. Reddy by HOSPIMEDICA International on 19th February 2002 at Delhi

Dr. Reddy was also invited by the Government of India to become a member of the working group on health financing and management constituted by the steering committee for the 8th Five Year plan in the planning commission.

Dr. Reddy has also been awarded by the Government of India with  Padma Vibhushan, India’s second highest civilian honor.

Ms. Shobana Kamineni, Director of new initiatives

Ms. Shobana Kamineni has a degree in Economics and 20 years experience in the healthcare industry. She was employee number 3 at Apollo Hospitals and is part of the founding family.

Ms. Suneeta Reddy, Director

Ms. Suneeta Reddy received her Bachelor of Arts degree in Economics and Marketing. She holds a diploma in Financial Management from the Institute of Financial Management and Research.

Dr. Wolfgang Strassl, Director

He was born in Munich in 1956. He obtained a bachelor’s degree and doctorate in economics at the University of Munich and the degree of Master of Philosophy in economic sciences at the University of Cambridge in the UK.

Mr. Wolfgang Diels, Head of Munich Health/Global Markets 2

Wolfgang Diels was born on 7 December 1954 in Goeppingen/Northern Wuerttemberg, Germany. He obtained his degree in law from Tuebingen and Munich in 1983.

Mr. Antony Jacob, Chief Executive Officer

Antony brings on board 24 years of rich experience with corporates such as ITC, the Continental Grain (now part of Cargill) and RSA group having worked in major Indian metros and in Europe, Middle East, Asia and Australia.

Mr. Krishnan Ramachandran, Chief Operating Officer

Mr. Krishnan Ramachandran was born in Chennai, India. As Chief Operating Officer he handles Underwriting, Actuarial, Claims & Provider Management, Customer Service and Technology.

Mr.Ravi Vishwanath, Chief Marketing Officer

Ravi Vishwanath has over 13 years of global experience in Insurance sector. He has worked with different economies worldwide like Mid East, Africa, and Asia.

Mr. Srikanth K, Chief Financial Officer and Company Secretary

Mr. Srikanth anchors the finance functions of the company. He is a versatile finance professional with over 18 years experience in BFSI space. He handled several intricate assignments spanning across finance, accounting

Dr. Sriharsha A Achar, Chief People Officer

Dr. Sriharsha A. Achar (Achar) brings in experience spanning 23 years and his vast experience covers several industries, such as Manufacturing, Pharmaceuticals and Electronics. Apart from this, he had also worked with BPO/ ITES.

Company’s partners

Muthoot Pappachan Group (MPG)

The beginnings of the Muthoot Pappachan Group can be traced back to Kozhencherry – a small town in the Southern state of Kerala, India. In 1887, Ninan Mathai Muthoot started a retail business which was later diversified into a finance business by his sons. With their youthful vision and combined strengths business soon flourished. In 1939, the brothers established the Muthoot Chit Fund Enterprises that provided small and medium loans to farmers and merchants.

Within a short span of 10 years Muthoot Chit Fund Enterprises became the largest business house of its kind in Kerala and a household name. The brothers soon moved into full fledged banking operations. They specialised in gold loans and advances to small enterprises and individuals on quick and easy terms.The brothers then decided it was time to part ways in business and, Ninan Mathai Muthoot’s younger son, Mathew M. Thomas or Muthoot Pappachan, as he is fondly known, founded the Muthoot Pappachan Group.

The Muthoot Pappachan Group is today a significant Pan-India financial services provider, with branches throughout the Nation. The focus has not changed, however. Tradition, transparency, reliability, innovation through experience and good standing in the community remain embedded in the Group.

The Group has over 5,000 people serving more than one million loyal customers at offices and establishments across the Nation. In addition to finance and insurance, the Muthoot Pappachan Group has significant presence in other sectors of business, such as hospitality, IT infrastructure, automotive and renewable energy

INDUSTRIAL REVIEW

INDUSTRIAL REVIEW

INSURANCE

MEANING

In law and economics, Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate(indemnify the insured in the case of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated.

History of Insurance

In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: money economies (with markets, money, financial instruments and so on) and non-money or natural economies (without money, markets, financial instruments and so on). The second type is a more ancient form than the first. In such an economy and community, we can see insurance in the form of people helping each other. For example, if a house burns down, the members of the community helps build a new one. Should the same thing happen to one’s neighbor, the other neighbors must help. Otherwise, neighbors will not receive help in the future.

Turning to insurance in the modern sense (i.e., insurance ina modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as 3 rd and 2nd millennia BC. A thousand years later, the inhabitants of Rhodes invented the concept of the ‘general average’. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinkage.

Insurance as we know it today can be traced to the Great Fire of London. The devastating effects of the fire converted the development of insurance “from a matter of convenience into one of the urgency”. A number of attempted fire insurance schemes came to nothing, but in 1681 Nicholas Barbon, and eleven associates, established England’s first fire insurance company, the ‘Insurance Office for Houses’. Initially, 5000 homes were insured by Barbon’s Insurance Office.

Insurance classification

Insurance companies may be classified into two groups Life insurance companies, which sell life insurance, annuities and pensions products. Non- life insurance, General, or property/Casualty insurance companies, which sell

other types of insurance.

GENERAL INSURANCE

General insurance: A form of insurance mainly concerned with protecting the policy holder from loss or damage caused by specific risks. Example includes Property/Casualty Insurance, Health/Disability, Business/ Commercial Insurance.

General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance.

General Insurance companies can be further divided into these sub categories.

Standard lines Excess Lines

Standardline insurance companies are “mainstream” insurers. These are the companies that typically insure auto, homes or business. They usually have lower premiums tan excess lines and can sell directly to individuals. They are regulated by state laws that can restrict the amount they can chargefor insurance policies.

INSURANCE

NON LIFE INSURANCE

EXCESS LINES

STANDARD LINES

LIFE INSURANCE

Excess lines insurance companies (also know as Excess and surplus typically insure risks not covered by the standard libes market. These companies have more flexibility and can react faster than standard insurance companies because they are not required to file rates and forms as the “admitted” carriers do. However, they still have substantial regulatory placed upon them.

In most countries, Life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules. The main reason for the distinction between the two types of company is that life, annuity, and pension business is very long-term in nature- coverage for life assurance or a pension can cover risks over many decades. By contrast, non-life insurance cover usually covers a shorter period, such as one year.

Types of Non Life Insurance

o Auto insurance

o Home insurance

o Business insurance

o Marine Insurance

o Health Insurance

o Accident, Sickness, Unemployment Insurance

o Casualty

o Property

o Liability

o Credit

o Other type (Pet insurance, Kidnap insurance and Ransom insurance, Legal expences

insurance, etc.)o Insurance financing vehicles

o Closed community self insurance

Growth of Non Life Insurance in India

India’s non- life insurance sector is on an upswing. The industry witnessed growth of 8% in the first half of 2009-10. There iis vast untapped business potential, especially in non-metro cities and semi- urban areas. However, it CAGR from 2001-09 has been 15%.

2007-08 2008-09 2009-106500

7000

7500

8000

8500

9000

Performance in first quater(in crore)

years

The total premium underwritten by the general insurance companies in the first half of 209-10 was Rs. 16819.95 crore as compared to Rs. 15571.72 crore in the year ago period. This it can be seen that it has been showing the increasing trend.

The general insurance sector rose at a rate of 13%per cent 2009-10, but according to the General Insurance council of India, it is expected to grow at a massive rate of 18% this year. This is a remarkable growth and various factors have added to achieve such impressive results. The value of general insurance sector insurance in India is around Rs 29000 crore and it is expected to cross Rs 35000 by the end of this year.

Health Insurance

Health Insurance, like other forms of insurance, is a form of collectivism by means of which people collectively pool their risk, in this case the risk of incurring medical expenses. There are currently 17 General Insurance/Non life insurance companies in India offering various Health insurance products and Services.

The major health insurance companies in India are

National Insurance Company New India Assurance United India Insurance ICICI Lombard Tata AIG Royal Sundaram Star Allied Health Insurance Cholamandalam DBS Bajaj Allianz Apollo AG Health Insurance Company

Growth of Health Insurance Sector

The health insurance market represents one the fastest growing and second largest no n- life insurance segment in the country. The Indian health insurance market has posted growth in the last two fiscals (2008-09 and 2009-10).

Health Insurance is emerging at a rapid clip. According to C.S Rao, ex chairman, Insurance Regulatory and Development Authority (IRDA), the gradual removal of tariffs would give a boost to health insurance. “The premium from the fire insurance is likely to drop while the

premium from health will increase following the removal of tariffs,” he says. Moreover, as per the report, the health insurance premium is expected to grow at a CAGR of over 25 per cent for the period spanning from 2009-10 to 213-14. The health segment recorded the highest growth (49.67 per cent) in the first quarter of the 2008-2009 over the corresponding quarter of 2007-08. Health insurance premium collections touched US$ 1.31 billion in the previous year, the Insurance Regulatory and Development Authority (IRDA) said in its annual report for 2008-09.

Health Insurance Premium 2004-2009

(rs. Crore)

Insurers 2004-05 2005-06 2006-07 2007-08 2008-09Non-Life Public 1366 1683 1974 3136 3824Non-Life Private 304 539 1224 1832 2266Standalone health Insurers 11 156 535Total 1670 2222 3209 5125 6625

2004-05 2005-06 2006-07 2007-08 2008-090

1000

2000

3000

4000

5000

6000

7000

Performance of Health Insurance

performance of health insurance

Contribution of Health Insurance in General Insurance

As per the reports of IRDA the contribution of health sector in general insurance has shown an increasing trend. According to the report general insurance increased 13 per cent in 2009-2010 which was mainly due to the health insurance sector which increased 57 per cent last year.

PREMIUM (WITHIN INDIA) UNDERWRITTEN BY

NON-LIFE INSURERS-SEGMENT-WISE

SEGMENT PREMIUM IN CRORE(2007-08) PERCENTAGE(2007-08)

FIRE 3459 12.43MARINE 1799 6.47MOTOR 12685 45.59HEALTH 4894 17.59OTHERS 4986 17.92TOTAL PREMIUM

27824 100

SEGMENT PREMIUM IN CRORES(2008-09)

PERCENTAGE(2008-09)

FIRE 3383 11.14MARINE 1957 6.45MOTOR 13336 43.94HEALTH 6088 20.06OTHERS 5588 18.41TOTAL PREMIUM 30352 100

FIRE MARINE MOTOR HEALTH OTHERS0

5

10

15

20

25

30

35

40

45

50

12.43

6.47

45.59

17.59 17.92

11.14

6.45

43.94

20.06 18.41

2008-092007-08

Thus we can see that the premium contribution of health sector in general insurance was 17.59 in 207-08 which has increased to 20.02% in 2008-09.

Future prospects of Health Sector

In general prediction about future health – of individuals and population – can be notoriously uncertain. However all projections of health care in India must in the end rest on the overall changes in its political economy.

On progress made in poverty mitigation (health care to the poor) Reduction of inequalities (health inequalities affecting access/quality) In generation of employment/ income streams (to facilitate capacity to pay and to

accept individual responsibility for one’s health). In public information and development communication (to promote preventive self

care and risk reduction by conducive life styles.) In personal life style changes (often directly resulting from social changes and global

influences.) Progress in reducing mortality and the likely disease load, efficient and fair delivery

and financing systems in private and public sector.

These changes will in return effect the health sector.

Growth drivers of Health Insurance

1. A series of policy reforms will be needed to provide subsidized for the country’s poorest citizens.

2. Efforts to encourage competition among health services and to extend to lower income citizens will also be beneficial.

3. Innovation in the product is essential. Today, most them offer only limited services, limited reimbursements, or both and don’t cover preexisting conditions or outpatient expenses.

4. To cover more people insurance firms need to design products that cater to several income classes and health groups, cover alternative therapies, and provide more comprehensive coverage.

5. A regulatory environment that regulated health insurance as distinct from other lines of insurance is necessary to boost the sectors growth.

6. The intense competition brought about by deregulation has encouraged the industry to innovation all areas; from underwriting, marketing, policy holder servicing to record- keeping.

7. Allowing insurers to issue their own policy wordings and set their own rates will enable underwriters to tailor products to meet client needs.

8. Aggressive marketing strategies by private sector insurers will buoy consumers’ awareness of risk and expand the markets for products.

Analysis

Health insurance has shown a rising trend and gradual removal of tariffs would give a boost to health insurance. But, the growth rate of the premium fell down sharply in 2008-09. Health insurance sector recorded the growth of 59% in 2007-08 which fell to 29% in 2008-09.

With the removal of tariff health insurance sector is expected to grow. Removal of tariff has led to the increase in the premium collection of health sector. Until December 206 a very large proportion of premium income (64.4%) came from tariff segments. Post- January 2007, this portion declined sharply, and was 14.5%. The discounting of fire rates also reduced its premium contribution. But, health sector saw the growth, its share increased from 12%in 2006-07 to 16% in 2007-08. Before the removal of tariff health contributed a much greater proportion of business for private players that were the case for public firms, but after the removal of tariff public sector took the lead.If we talk about the overall business of Nonlife Insurance (within and outside India), it has shown irregular pattern of growth.

Gross Direct Premium of Non Life Insurance (within and outside India)

Years Premium(crore) Growth%2001-02 12724 2002-03 15245 20

2003-04 173572004-05 19522 12

2005-06 224722006-07 27135 21

2007-08 304802008-09 33565 10

In the first segment was 20% which fell by 8% in next segment. In 2005-07, it showed a sharp increase of 21% which again fell sharply to 10% in 2007-09 The penetration of insurance Market in India as compared to the other Asian markets has been very low. In 2008 the penetration of non life insurance sector was 60% where as in South Korea it was 3.70% in the same period.Some of the weaknesses of insurance sector in India arePublic and Private sector insurers’ greater reliance on their investment portfolios to generate sufficient income and gains for net profits would subject them to the volatility of the financial markets.Private insurers need to raise more capital, otherwise growth could be constrained since reliance on reinsurance for capital relief is not always viable or available.Traditional distribution channels, especially tied agents, need to be improved to match the new product offerings.There is general lack of transparency as financial and operational data for insurers are not readily available as none of India’s insurers are directly listed on stock exchange.

PRODUCTS OFFERED BY THE COMPANY

Products offered by the company

Apollo Munich, offer a broad range of health insurance products to facilitate quality healthcare protection. The company has its branches in almost all the major cities of the country. Our products are offered on a 'cashless basis' in more than 4000 hospitals across India and on 'Reimbursement basis' across all hospitals in the country.

There is an array of products that fits the lifestyle of the common man. Easy Health, Easy Travel, and Personal Accident Plan have been carefully designed keeping in mind the needs of individuals, families and groups.

In addition to these products, there are value added services for all our clients. These are cashless hospitalization, Healthline and Health Risk AssessmentThese value added services simply make sure that the customer is able to cover the preventive aspect of healthcare with ease.

Since the main aim of the company is to ‘Uncomplicate’ healthcare solutions for customers, there are a number of steps that have been taken in the same direction. The plans and the value added services provide customers with several benefits that are meant to enable the customer to get complete healthcare without having to undergo any fiscal blow. The health insurance plans provide benefits such as coverage for pre- and post-hospitalization expenses, day-care procedures coverage, and several other such benefits.

The Personal Accident Plan also provides lump sum amounts for the family in case if death or disability of the insured individual by an accident. Similarly, Easy Travel provides customers with more than just coverage in times of medical problems. The plan provides customers with access to the company’s helpline where customers can gain assistance (referrals for embassies, interpreters, medical centers, etc.) with any kind of problem.

However, all the plans come with Great customer service, 100% lifelong renewal, clear policy wordings and conditions, cashless access to the best 10,000 doctors and 4500 hospitals in over 800 cities, tax deduction under Section 80D, our healthcare and health insurance expertise and one of the fastest claims settlement in the Industry. 

To make it simpler for the customer to choose, the plans have been divided into

Individual Plans Family Plans

Individual Plans include

Easy Health Standard Easy Health Exclusive Easy Health Premium Insure Health Maxima Personal Accident Plan

Family Plans include

Easy Health Standard Easy Health Exclusive Easy Health Premium Maxima Optima Cash

Individual Plans

Easy Health Standard

Comprehensive coverage for hospitalization Coverage offered for Pre & Post-Hospitalization Coverage for specific 140 day-care procedures 10% cumulative bonus for every claim-free year accumulating upto 50% Daily cash for choosing shared accommodation (Rs. 500 per day, maximum Rs. 3000) Expenses for Organ donor Emergency Ambulance - upto Rs. 2000

Easy Health Exclusive

Comprehensive coverage for hospitalization Coverage offered for Pre & Post-Hospitalization Coverage for specific 140 day-care procedures 10% cumulative bonus for every claim-free year accumulating upto 50% Daily cash for choosing shared accommodation (For Sum Insured 3.00, 4.00, 5.00 lacs:

Rs.500 per day, maximum Rs. 3,000; For Sum Insured 7.50 lacs: Rs. 800 per day maximum Rs. 4,800)

Expenses covered for Organ donor. Emergency Ambulance - Upto Rs. 2000

Daily cash for accompanying an insured child (For Sum Insured 3.00, 4.00, 5.00 lacs: Rs.300 per day, maximum Rs.9,000; For Sum Insured 7.50 lacs: Rs. 500 per day maximum Rs.15,000).

Additional coverage for Critical Illness Coverage for Maternity expenses Coverage for new born baby

Easy Health Premium

Comprehensive coverage for hospitalization Coverage offered for Pre & Post-Hospitalization Coverage for specific 140 day-care procedures 10% cumulative bonus for every claim-free year accumulating upto 50% Daily cash for accompanying an insured child (For Sum Insured 4.00, 5.00 lacs: Rs.300 per

day, maximum Rs.9,000; For Sum Insured 7.50 lacs,10.00 lacs: Rs. 500 per day maximum Rs.15,000).

Daily cash for choosing shared accommodation (For Sum Insured 4.00, 5.00 lacs: Rs.500 per day, maximum Rs. 3,000; For Sum Insured 7.50 lacs, 10.00 lacs: Rs. 800 per day maximum Rs. 4,800)

Expenses covered for Organ donor Emergency Ambulance - Upto Rs. 2000 Additional coverage for Critical Illness Coverage for Maternity expenses Coverage for new born baby E-Opinion for Critical Illness. Coverage for Outpatient Dental Treatment Coverage for Spectacles, Contact Lenses, Hearing Aid

Insure Health

Coverage of all hospitalization expenses. Simple to buy: fill the proposal form and get the policy. No medical examination required. Comprehensive and affordable. Loyalty Discount of 5% on the renewal premium of the Insure Health Policy can be availed at

the time of renewal, as a cross selling credit to buy any other Apollo Munich product within 365 days from the renewal date.

Coverage for inpatient Ayurveda, Unani, Sidha and Homeopathy treatment up to 10% of the Sum Insured

Maxima Health

We all visit hospitals more often for small problems than the big ones. But most health plans work only when you’re hospitalised or undergo major treatment. That’s why the

new Maxima, a plan with unique out-patient features to take care of your regular illnesses and little niggles. Here’s what it covers: 

Doctor Consultations: 4/6/8 consultations as per plan opted for you and your family anywhere

Pharmacy Expenses: Your pharmacy bills are covered as well

Diagnostics: Cost of diagnostic tests taken by you or anyone covered in your family will also be paid

Specialist Services: Dental treatment, Spectacles and Contact lenses are all taken care of up to a certain limit

Health Check-ups: Any person above 18 years of age is provided with an annual health check-up. (person above 45 years can avail this benefit from second year)

Pre-existing illnesses under OPD Benefits, covered: If you need medicines or a Doctor’s consultation for any pre-existing illness, it’ll be covered without any waiting period

Flexibility: Enjoy freedom from sublimits. Use the OPD vouchers as per your needs and requirements without worrying about any sublimits

Tax benefits: You have the advantage of saving an optimum amount under Section 80D of Income Tax Act

Individual Personal Accident Plan

Affordable insurance plan with premium based on occupation Coverage for injuries sustained anywhere in the world Lump sum payment for death due to an accident 10% discount for two or more members covered Cumulative discount of 5% for every claim - free year upto 50% of the accidental death sum

insured In case of Accidental Death or Permanent Total Disablement get 50% of Sum Insured per

Dependent Child up to a maximum of two Dependent Children for pursuing an educational course.*

*Provided that such dependent child is pursuing an educational course as a full time student in an educational institution

Weekly allowance in case of Temporary Total Disablement

Family Plans

Easy Health Standard

Comprehensive coverage for hospitalization Coverage offered for Pre & Post-Hospitalization Coverage for specific 140 day-care procedures 10% cumulative bonus for every claim-free year accumulating upto 50% Daily cash for choosing shared accommodation (Rs. 500 per day, maximum Rs. 3000) Expenses for Organ donor Emergency Ambulance - Upto Rs. 2000

Easy Health Exclusive

Comprehensive coverage for hospitalization Coverage offered for Pre & Post-Hospitalization Coverage for specific 140 day-care procedures 10% cumulative bonus for every claim-free year accumulating upto 50% Daily cash for accompanying an insured child (For Sum Insured 3.00, 4.00, 5.00 lacs: Rs.300

per day, maximum Rs.9,000; For Sum Insured 7.50 lacs: Rs. 500 per day maximum Rs.15,000).

Daily cash for choosing shared accommodation (For Sum Insured 3.00, 4.00, 5.00 lacs: Rs.500 per day, maximum Rs. 3,000; For Sum Insured 7.50 lacs: Rs. 800 per day maximum Rs. 4,800)

Expenses covered for Organ donor. Emergency Ambulance - Upto Rs. 2000 Daily cash allowance for accompanying an insured child. Additional coverage for Critical Illness Coverage for Maternity expenses Coverage for new born baby

Easy Health Premium

Comprehensive coverage for hospitalization Coverage offered for Pre & Post-Hospitalization Coverage for specific 140 day-care procedures 10% cumulative bonus for every claim-free year accumulating upto 50% Daily cash allowance for accompanying an insured child.

Daily cash for accompanying an insured child (For Sum Insured 4.00, 5.00 lacs: Rs.300 per day, maximum Rs.9,000; For Sum Insured 7.50, 10.00 lacs: Rs. 500 per day maximum Rs.15,000).

Daily cash for choosing shared accommodation (For Sum Insured 4.00, 5.00 lacs: Rs.500 per day, maximum Rs. 3,000; For Sum Insured 7.50, 10.00 lacs: Rs. 800 per day maximum Rs. 4,800)

Expenses covered for Organ donor Emergency Ambulance- Upto Rs. 2000 Additional coverage for Critical Illness Coverage for Maternity expenses Coverage for new born baby E-Opinion for Critical Illness. Coverage for outpatient Dental Treatment Coverage for Spectacles, Contact Lenses, Hearing Aid

Optima Cash

Upto 25% discount for online customers Coverage for Hospitalization due to Illness/Accident Daily cash benefit for hospitalization Double Daily Cash benefit for ICU and Joint hospitalization 50% Daily Cash amount for 10 identified Day-Care procedures Option to choose Policy period of 1 or 2 Years No medical tests required Convalescence Cash- Lump sum amount for hospitalization beyond 7 days Coverage for additional expenses like attendant’s food, travel and accommodation No medical bills required for claim

METHODOLGY

METHODOLOGY

The study is done by gaining practical experience of 30 days at APOLLO MUNICH HEALTH INSURANCE COMPANY LIMITED. Working in any organization is a beautiful experience and it adds to my knowledge.. I have been able to learn many things during this period.

Method of collecting data

I have made use of both primary and secondary data. The collection of material for study has been done through continuous queries from the project guide and the employees of the firm. I also scrutinized the employees and the customers closely. The sources of secondary data were Internet, the application forms, the brochures and the software tutorials. After collection the matter has been analyzed and worked upon.

Method of collecting data

Primary data

Observation of employees

Querying with employees

Observation of customers

Secondary data

Internet

Brochures

Application forms

FINDINGS

I worked under Mr. SHREE NIVAS who gave us the project on health insurance products of the company. I did a detailed study of company’s health insurance product and found out –

HEALTH INSURANCE PRODUCT

EASY HEALTH INSURANCE

Easy Health Insurance Plans are designed in a way to suit your need and fit your pocket. They will not only guard you against the spiraling medical costs but will also guide you on the path of wellness, providing you a double protection of prevention and cover. The Easy Health Insurance Plans are available for Individuals (Easy Health Individual Health Insurance Plan) and Families' (Easy Health Family Health Insurance Plan). These Plans manage you and your families health-related needs right from consultation and hospitalization to the post-hospitalization.

These policies are available on a cashless basis in over 4000 network hospitals thus managing your expenses and providing hassle-free transactions. To let you decide the right policy that suits your needs, we have made three variants available, which give you a choice and freedom to decide your premium.

The Easy Health Insurance policies are power-packed with unique features like cash credited on daily basis on choosing shared accommodation, daily cash for accompanying an insured child, maternity expenses, health check-up, spectacles, contact lenses, etc. and out-patient dental treatment.

With Best in class benefits

Wide options  Choose from the wide choices of the sum insured starting from Rs 1 lac to 10 lacs.

Portability-A customer-friendly policy that ensures that you avail most of the accrued benefits when you opt for Apollo Munich Health’s Easy Health Insurance Plans.

Pre-Hospitalization and Post-Hospitalization cover Takes care of medical expenses incurred before and after the hospitalization.

Cumulative Bonus-Get special incentives on every renewal after a claim-free year.

Tax Benefits Get tax  benefits for the premium amount under Section 80D of the Income Tax Act.

With Value Added Services

Health Risk AssessmentWe offer our customers maximum health benefits with minimum efforts. The globally validated online health risk assessment is provided to all our customers. This helps them to profile their health status, and will also offer personalized wellness recommendations on diet, lifestyle, nutrition, etc.

Cashless HospitalizationOur policies, in addition to reimbursement of claims at all hospitals, are valid on a cashless basis in over 4000 hospitals.

All insured members can call the Healthline and quote their unique customer ID (provided with the policy) to reach our experts and avail primary consultation, health-related consultation, individual referrals, health information, nutrition and diet, at no extra cost.

With Wide Choices

We offer three plan variants, to help you choose what’s best for your needs. The cover amount ranges from Rs. 1,00,000 to Rs. 10,00,000 according to the product variant you choose.

Standard Plan A plan that is tailor-made especially to fit every one’s pocket. Starting at just Rs. 3/day. Health insurance was never so accessible before…

Exclusive Plan This plans covers maternity, which makes it unique in its class. Starting at Rs500 Per day….

Premium Plan Take e-opinion from our expert panel of doctors who will guide you through this critical time starting at …..Rs. 5000 per annum.

Terms of Renewal

We offer life-long renewal unless the Insured Person or any one acting on behalf of an Insured Person has acted in a dishonest or fraudulent manner or any misrepresentation under or in relation to this policy or the Policy poses a moral hazard.

Maximum Age –There is no maximum cover ceasing age in this policy. For Additional cover of Critical Illness maximum cover ceasing age in this policy would be 70 yrs.

Waiting Period - The Waiting Periods mentioned in the policy wording will get reduced by 1 year on every continuous renewal of your Easy Health Insurance Plan.

Renewal Premium- Renewal premium are subject to change with prior approval

from IRDA. Sum Insured Enhancement – Sum Insured can be enhanced only at the time of

renewal subject to no claim have been lodged/ paid under the policy. If the insured increases the sum insured one grid up, no fresh medicals shall be required. In cases where the sum insured increase is more than one grid up, the case shall be subject to medicals. In case of increase in the Sum Insured waiting period will apply afresh in relation to the amount by which the Sum Insured has been enhanced.

INSURE HEALTH

Insure Health is an inpatient EASY TO BUY Health Insurance product that is specifically designed for you who understand the need for good health and would opt for a health insurance cover that is easy to buy and use.  Insure Health brings you the simplest buying process devoid of any lengthy procedures such as medical examination etc. You can buy Insure Health from any of the Apollo Munich Health counters by filling a simple proposal form* and getting it authorized and activated at the counter itself. Insure Health comes with various Sum Insured options to suit your budget and suffice your health insurance needs.

*Policy would be issued at the point of sale for accept cases and any adverse declaration will result in rejection.

Who all can opt for Insure Health?

1. The policy can be issued to an individual and/or family for the period of 1 year. 2. The family includes spouse, dependent children and dependent parents. 3. The policy covers individuals from the age of 5 years onwards. A child

dependent can be covered from the 91st day if both parents are covered under this policy. The maximum entry age is 50 years.

Premium Table (In Rs.) (Excluding Service Tax)

Age Group(In Yrs)

SI-25,000 SI-50,000 SI-75,000 SI-100,000 SI-200,000

91days-35 530 743 902 1,061 1,593

36-45 849 1,168 1,433 1,646 2,12446-50 1,380 1,911 2,336 2,708 3,98351-55* 1,540 2,336 2,655 2,974 4,568

56-60* 1,805 2,496 3,080 3,505 5,046

61-65* 2,974 4,143 5,152 5,843 8,552

66-70* 3,930 5,524 6,852 7,755 10,996

71-75* 4,515 6,268 7,808 8,871 12,218

Benefits

Benefits you can access through Apollo Munich Health’s Insure Health are:

1. In-patient treatment: This includes all hospitalization expenses. 2. Pre-hospitalization: Through this the insured is eligible for lump sum amount

equivalent to 1% of admissible claim amount towards pre-hospitalization expenses.  3. Post-hospitalization: Through this the Insured is eligible for lump sum amount

equivalent to 1% of admissible claim amount towards post-hospitalization expenses. 4. Day-Care procedures: This provides the insured with the cover for the medical

expenses for 140 Day-care procedures which do not require 24 hours hospitalization due to technological advancement.

5. Organ Donor: This entitles the insured for the medical expenses incurred for an organ donor’s treatment for the harvesting of the organ donated.

Discounts

a. A family discount of 10% can be availed if 2 or more members of a family are covered under the same policy on Individual sum Insured basis.

b. Loyalty Discount of 5% on the renewal premium of the Insure Health Policy can be availed at the time of renewal, as a cross selling credit to buy any other Apollo Munich product within 365 days from the renewal date.

Terms of Renewal

We offer renewal unless the Insured Person or any one acting on behalf of an Insured Person has acted in a dishonest or fraudulent manner or any misrepresentation under or in relation to this policy or the Policy poses a moral hazard.

Maximum Age – Maximum cover ceasing age in this policy would be 75 years. Cumulative Bonus – No cumulative bonus is offered under this policy. Waiting Period - The Waiting Periods mentioned in the policy wording will get

reduced by 1 year on every continuous renewal of your Insure Health policy. Renewal Premium- Renewal premium are subject to change with prior approval

from IRDA.

Sum Insured Enhancement – Sum Insured can be enhanced only at the time of renewal subject to no claim have been lodged/ paid under the policy. If the Insured increases the Sum Insured, no Pre Policy Check-up will be required but the case will be subject to medical underwriting. In case of increase in the Sum Insured waiting period will apply afresh in relation to the amount by which the Sum Insured has been enhanced. However the quantum of increase shall be at the discretion of the company.

MAXIMA HEALTH

MAXIMA UNIQUE

Doctor Consultations: 4/6/8 consultations as per plan opted for you and your family anywhere

Pharmacy Expenses: Your pharmacy bills are covered as well

Diagnostics: Cost of diagnostic tests taken by you or anyone covered in your family will also be paid

Specialist Services: Dental treatment, Spectacles and Contact lenses are all taken care of up to a certain limit

Health Check-ups: Any person above 18 years of age is provided with an annual health check-up. (person above 45 years can avail this benefit from second year)

Pre-existing illnesses under OPD Benefits, covered: If you need medicines or a Doctor’s consultation for any pre-existing illness, it’ll be covered without any waiting period

Flexibility: Enjoy freedom from sublimits. Use the OPD vouchers as per your needs and requirements without worrying about any sublimits

Tax benefits: You have the advantage of saving an optimum amount under Section 80D of Income Tax Act

MAXIMA COMPLETE

Wide in-patient cover: Maxima offers   300,000 cover for in-patient treatment, pre and post hospitalisation, daycare procedures, domiciliary treatment, daily cash for choosing shared accommodation. We also pay for expenses for organ donor, emergency ambulance charges, daily cash for accompanying an insured child, maternity expenses and care for a new born

Wide out-patient cover: An out-patient benefit up to the limit covering expenses for doctor consultations, pharmacy expenses, spectacles, health check-up and diagnostic tests. All these are available throughout the Apollo Munich network on cashless basis and on reimbursement basis any where else in India

Cashless Hospitalisation: Cashless transactions across the Apollo Munich network of over 4000 hospitals across 800 cities in case you need hospitalisation

Life Long Renewal benefit: The good thing is, once you are covered under Maxima, you can renew your cover life long. So there’s no cover ceasing age

Additional critical illness cover: You have the option to choose an additional critical illness cover as per your needs. This provides for additional coverage against 8 specified critical illnesses and is always paid as a lump sum benefit in addition to any medical expenses you may incur for hospitalisation

Renewal Benefits: For in-patient treatment : Maxima offers a cumulative bonus of 10% for every claim free year accumulating to a maximum of 50% of your in-patient sum insured. In the event of a claim, the cumulative bonus is reduced by 20% on the next renewal

For out-patient benefits: Maxima offers the advantage of carrying forward 50% of any unutilized entitlement certificates to the next policy year. This excludes the Annual Health Check-up

Benefits of Apollo Munich Maxima health insurance plan Some of the benefits of Apollo Munich Maxima health plan are as follows: Offers wide in-patient hospitalization coverage benefits.

Offers OPD benefits which covers outpatient treatment that do not require hospitalization.

Offers excellent flexibility for using OPD vouchers without the need to worry about sub-limits. Also, offers the flexibility to choose an optional Critical Illness Cover based on requirement.

Offers critical illness cover.

Offers comprehensive health check-up.

Offers life-long renewal policy

Offers tax benefits as per the section 80 (D) of the Income Tax act.

Offers cumulative bonus for claim-free year.

New born and maternity benefit is offered but with a waiting period.

Premium: For an adult the premium for the Maxima Premium is Rs. 15,216 and while for the two adults it is Rs. 21,105!  While the tax benefits, OPD entitlement certificates will pay for themselves and according to them the actual effective premium is Rs. 480 and Rs. 1570 for one adult and two adults respectively.  This is for the sum assured of Rs. 3 Lakhs.