Desert at Ion Final 1

8/7/2019 Desert at Ion Final 1

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Chapter 1

Primary health care is a vital function of a society acting as backbone. India was one of

the first countries to recognize the advantages of Primary Health Care (PHC). PHC was

conceptualized in 1946 when Sir Joseph Bhore committee made recommendations that

formed the foundation stone for health service in India.

Recommendations:-

Integration of preventive and curative services at all administrative levels.

Short term Primary Health Centers for every 40,000 population.

Long Term- Primary Health Centers per 10,000-20,000 population to have 75

beds.

Formation of Village health committee

Provision of Social Doctor

Three months training in preventive and social medicine to prepare social

physicians.

First Five Year plan (1951-1955)

Community Development Program launched, 1952 keeping in eye 80% population

lived in rural areas. Each Community Development Block (CDB) formation

approximately 100 villages with a total population of one lakh.

For one CDB, one Primary Health Centre was created.

Second Five Year plan (1956-61)

"Health Survey and Planning Committee", The Mudaliar Committee, had to review the

progress made in the health sector after submission of Bhore committee report. The major

recommendation:-

To limit the population served by primary health centres to 40,000

Improvement in the quality of health care provided by these centers.

Provision of one basic health worker per 10,000 populations was recommended.

The Jungalwalla Committee 1967


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Highlighted importance of integration of health services. Integrated health

services were defined as "a service with a unified approach for all problems

instead of a segmented approach for all different problems".

The committee recommended integration from the highest to lowest level in the

services, organization and personnel.

The Kartar Singh Committee on Multipurpose workers 1973

Laid down the norms about health workers ensuring proper coverage

one primary health centre to be established for every 50,000 population

Each primary health centre to be divided into 16 sub-centres each for a population

of 3,000 to 3,500.

Each sub-centre to be staffed by a team of one male and one female health

worker.

The work of 3-4 health workers to be supervised by one health assistant.

Major Goals to be achieved by National health Policy 2002

Eradicate Polio and Yaws

Eliminate Leprosy Eliminate Kala Azar

Eliminate Lymphatic Filariasis

Achieve zero level growth of HIV/AIDS

Reduce mortality by 50% on account of TB, Malaria, other vector and water

borne diseases

Reduce prevalence of blindness to 0.5%

Reduce IMR 30/1000 and MMR 100/lakh

Increase utilization of public health facilities from 75%

Establish an integrated system of surveillance, national health accounts and health

statistics

Increase health expenditure by Govt. as a % of GDP from existing 0.9% to 2%

Increase share of central grants to constitute at least 25% of total health spending


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Chapter 2: Legal Framework


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Insurance act, 1938 came into effect from 1st july 1939 (Amended in 1950, 1999).

Contains provision regarding licensing of agents and their remunerations, prohibition of

rebates and protection of policy holders interest.

IRDA Act 1999, IRDA responsible for the administration of the insurance act.

Power to register insurance companies.

Monitor and certify terms of business.

Inspect documents of insurers

Adjudicating disputes between insurers and intermediaries.

Decide on dipute related to settlement of claim.

Life Insurance Corporation Act, 1956 for LIC only which was later on ceased on

amendment of Insurance act 1999.

Consumer protection Act 1986 (COPA) ensures that consumers of policies can approach

any of the listed organization in the act for redress in case he is not satisfied with the

goods or services provided.

Income Tax Act : The premium paid is deducted under Section 80 D of the ITA.

MRTP Act 1969 (Monopoly and restrictive trade Practices act)

Controls concentration of economic power in one hand

Restricts monopoly in the market

Employees State insurance act, 1948

Treatment rcvd & benefits

Benefits not received


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Eligibility

Central Government health Scheme (CGHS) addresses consumer complaints.

Arbitration and Conciliation Act, 1996 addresses all complaints and demand for

compensation.

Indian Contract Act 1872 for

Breach of contract

Deficiency in services

Damages

Dispute of facts

Negligence

Drugs control act (1950) and Indian Medical council act (1956)

Chapter 1: Literature Review


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Health Policy Challenges of India: private health Insurance lessons from the International

Experience by Ajay Mahal

The research concentrates on Regular development of Health Services in India and

persisting challenges which are growing at the same pace. The are of study concentrateson United states, united Kingdom, Canada, Brazil, Germany, Israel. The research focuses

on the health care system in Canada and appreciates the control methods used for

services. The research findings are highlighted as:

Patient satisfaction and Quality of care

How to reconcile the need for choice among providers with cost containment.

Reconciliation of consumer choice with equity.

The study concentrates on the cost factor in the consumers mind and how the

governments of these countries are trying to achieve the balance. Too much specialties

and more supply of doctors may increase the cost of care. While conducting the study it

was not taken into account that Health services have a long term impact. The study

considers the short term impact which is seen by the consumer and drives him to the

product.

Health Insurance in India Prognosis and prospectus by Randall P Ellis, Moneer Alam,

Indrani Gupta.

Corroborating evidence that the system is disproportionately private is the estimate that

80 per cent of all registered allopathic physicians are private [Uplekar and George 1994,

p 10]. An even higher estimate for the private sector appears in a report of the Planning

Commissions Working Group on Health Management and Financing which estimated

that household expenditures on treatment may be as much as 8.4 per cent of GDP versus

public spending of only 1.1 per cent of GDP (Planning commission report 1996)

In recent years nominal user fees have been charged at government facilities in Andhra

Pradesh, West Bengal, Punjab and Karnataka. These fees remain low in comparison to

both private fees and the unofficial payments which are still made at most public facilities

in these states and in other parts of the country. Nonetheless, these efforts at cost


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recovery remain in important initiative for improving incentives, decentralizing some

spending authority and augmenting resources at public health facilities.

The life insurance companies in India have relied on actuarial methods and life tables forfixing premia. The employment of rigorous procedures for the fixation of premia was not

possible owing to paucity of the epidemiological data cross-classified by region and

major socioeconomic

class. The GIC and its subsidiaries do not have the option of estimating probabilities

associated with the vulnerability of individuals to various diseases. Hence, they have

relied mainly on simplified procedures based on the information available to them from

the policy documents and the claims register. Recently, however, the GIC introduced a

differential system for setting premia for its Mediclaim policies which adjusts for health

expenditure differences as between five age groups. Information has also been collected

for differences in claims rates by age, sex, rural/urban, habitat, occupation, and income

groups. The age dimension, however, remains the only criterion being used by the GIC

for adjusting premium.

Health Infrastructure in Rural India by Laveesh Bhandari and Siddhartha Dutta,

2007


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Figure 1

The above figure has the criteria for developing health care system.

In Plain area Community Health center is for areas which have population morethan 1,20,000. For Primary Health Center the population should be 30,000. For a

sub-center the population size should be 5000 and above.

In Hilly and tribal areas center is for areas which have population more than

80,000. For Primary Health Center the population should be 20,000. For a sub-

center the population size should be 3000 and above.

Figure 2

Figure 2 clearly shows the data about the type of Hospital providing facilities in Urban

and rural areas. There is a clear increase in Private sector and dependency on

Government has decreased in both the areas. It is also an indicator of improvement of

health services as more and more people are showing faith in private health care.


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Figure 3

The above figure has a great relevance to the psychology of the Indian mind. The data

shows reasons for untreated spells of Ailments.

12% of the rural population said they had no access to medical facility while in

1995-96 there were only 9% of such people. The gap is widening with increase in

population.

3% did not have faith in the care or services. It is down by 1% in Rural area and is

down by 3% in urban areas between 1995-2004. This indicates more and more

people are moving towards professional care.

In country of ours poverty is the biggest evil and it share 28% as most of the

people can not afford the medical services. With 32% of the population think that the Ailment is not serious and do not take

preventive care.

Others have a 24% space which covers the most important part, In India every

other person knows about medicine and will suggest you one.

Percentage distribution of Source of Finance for Hospitalization.


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Figure 4

The above data gives a insight of the expenditure incurred and it bifurcation. It also gives

Average expenditure per treated person (hospitalized in last 365 days.)

The data shows that out of every Rs.100 spent family spending is not more than 40% on

an average across all class.

Borrowings take a major role with 45% and above in all the classes.

Friends and relatives come to a little help of 10-15% with ornament, land holdings etc

adding 6-10%.

This shows the lack of awareness or ignorance from the people about there health.

Percentage distribution for non- hospitalized treatment.


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Figure 5

The above data shows expenditure break up of patients in case of Out Patient

Department.

In this case Household contribution is maximum upto80%. The expenses are

directly from you earnings or savings.

Borrowings are at 15% on an average against class interval. Contribution fromfriends and relatives and other sources are the other means to get fund for hospital

care.

Figure 4 and Figure 5 clearly shows that people are spending more than what

actually they will pay for premium in there daily lives.

Inter Regional Inequality Facility Health Insurance for the poor, India by Rajeev

Ahuja, Senior Fellow Indian Council for Research on International Economic Relations

(ICRIER)

The series of Policy Briefs summarizes the experiences of Government initiatives aimed

at addressing inequality in Africa, Asia and Latin America.

The study concentrates on some of the initiatives and suggests some key learning for

success of health insurance for individuals and families on low- incomes.


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Provision of healthcare services of a reasonable quality;

Possibility of resource mobilization from the targeted population in order to

recover costs.

Presence of intermediary agency to overcome the informational disadvantages

and high transaction costs involved in providing insurance to low-income groups.

A Healthier future for India by Rajat Gupta (The McKinsey Quarterly, Jan 2008)

The report speaks about acting on three fronts:

A series of policy reforms needed to provide subsidized health insurance for the

country citizens.

Innovation in products. Today most of them offer only limited services.

Regulatory environment which recognizes health insurance as separate business

and not part of the insurance industry. It is essential for the growth of the sector.

Health Insurance in India by K. Sujatha Rao Secretary, National Commission on

Macroeconomics and Health, GOI.

The present system of financing and payment systems raise several important concerns

on the suitability of the structure to meet current day problems and future challenges. The

large size of out of pocket expenditures provides an opportunity to pool these resources

and facilitate spreading risk from households to government and employers on a shared

basis which will be a more equitable financial arrangement. The dimension of equity is of

particular concern as the inelasticitys of demand for acute care, are resulting in over 33

lakh persons being pushed below poverty line, every year. In short the social benefits of

instituting social insurance as a financial instrument to replace user fees, outweighs the

possible risks of moral hazard and increased costs, typical outcomes of prepaid insurance.How to minimize these two market failures are of concern and need to be addressed by

developing a well thought out strategy taking international evidence into account so we

build on existing knowledge and learn from others experiences. It is argued that it is not

advisable for governments to intervene in health insurance markets in a piecemeal

mannerinsurance for pensioners by the Department of Personnel; for weavers by the


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Department of Textiles, for fishermen by the Department of Agriculture, for farmers by

the Department of Cooperatives, poor women by the Department of Rural Development

etc., as such attempts fragment risk pools. In other words, resorting to insurance as a

financing instrument must be an act of a deliberate strategy that addresses the market

failures in order to ensure that inequities do not widen and the poor are not marginalized

two typical outcomes of private, fragmented insurance systems In conclusion it is

reiterated that given the fiscal constraints for government to provide universal access to

free health care, insurance can be an important means of mobilizing resources, providing

risk protection and achieving improved health outcomes. The critical need is to

experiment with the wide range of financing instruments available in different scenarios

and have adequate flexibility in the design features, the structures and processes,

institutional mechanisms and regulatory frameworks, so that a viable balance can be

achieved for minimizing market distortions so that the outcomes do not make the cure

worse than the disease (Enthoven 1983, 1993). Unregulated markets are inefficient and

inequitable, requiring governments to intervene to ensure no segmentation in the system

(Bloom, 2001). For this, the burden of building partnerships and managing change is on

the government, which in turn needs to base its strategy on sound research.

Community Health Insurance in India- An overview byN Devadasan, Kent Ranson,

Wim Van Damme, Bart Criel

The objectives range from providing low cost health care to protecting the households

from high hospitalisation costs. BAIF, DHAN, Navsarjan Trust and RAHA explicitly

state that the health in surance scheme was developed to prevent the individual member

from bearing the financial burden of hospitalisation. Healthinsurance was also seen by

some organisations as a method of encouraging participation by the community in their

own healthcare. And finally, especially the more activist organizations (ACCORD,

RAHA) used community health insurance as a measure to increase solidarity among its

members one for all and all for one.


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Figure 6

The above figure shows the types of Community Health Insurance schemes in India.

The community health Insurance is divided into three parts

Type I which is direct community program.

Type II which has NGO acting as premium collector and paying to Provider.

Type III which is NGO paying premium to Insurance company and insurance

company paying to provider.

Health Care in India Emerging market report, 2007 (PWC)

A growing healthcare sector

Healthcare is one of Indias largest sectors, in terms of revenue and employment, and the

sector is expanding rapidly. During the 1990s, Indian healthcare grew at a compound

annual rate of 16%. Today the total value of the sector is more than $34 billion. This

translates to $34 per capita or roughly 6% of GDP. By 2012, Indias healthcare sector is

projected to grow to nearly $40 billion. The private sector accounts for more than 80% of

total healthcare spending in India. Unless there is a decline in the combined federal andstate government deficit, which currently stands at roughly 9%, the opportunity for

significantly higher public health spending will be limited.

One driver of growth in the healthcare sector is Indias booming population, currently 1.1

billion and increasing at a 2% annual rate. By 2030, India is expected to surpass China as

the worlds most populous nation. By 2050, the population is projected to reach 1.6


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billion.

Figure 7

The above graph shows the population growth in BRIC nations and estimates it to be 5%

constant for India for coming 50 years.

By 2010-2015 India will take over China in terms of population growth and will

remain highest for the coming 40 years.

Increase in population has direct relation with demand and social security. This

will in turn increase the demand side of Health Insurance.

Figure 8


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The data represents the middle class growth estimates by the end of year 2010.

It shows an increase of middle class population from 50.53% to 62.955 of the total

population which is again an added advantage as middle class represents the highest

demand generating class for the Indian economy.

Government Health Expenditure of India: A benchmark study by Economic

Research foundation, 2006

Health expenditure in India is dominated by Private spending. The study covers Pattern

of health expenditure in India.

House holds- 68.8 %

External funding 14.4%

Central Government 7.2%

Firms 5.1%

Others 4.7%

Source: National Health account for India, 2001-2002

Health care spending in India, 2004-05

St

ate

Per capitaexpenditure

(Rs.)

Per cent spent by

Household Public Other

AndhraPradeshArunachalPradesh

11184365

73.486.5

19.413.5

7.20

Assam 1347 80.8 17.8 1.4

Bihar Delhi Goa Gujarat Haryan


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aHimachalPradeshJammu&KashmirKarnatakaKeralaMadhyaPradeshMaharashtraManipurMeghalaya

14971177456411871786392720829972952120015762068664

90.256.479.277.58586

77.370.486.383.473.381.236.5

8.340.517.515.810.612.420.723.210.813.622.117.258.4

1.53.13.36.74.41.62

6.42.93

4.61.65.2

Mizoram 1027 39.4 60.6 0

Nagaland

OrissaPunjabRajasthan

5338

9951813808

91.7

79.176.170

7.6

1818

24.5

0.7

2.95.95.5

Sikkim 2240 56.9 43.1 0

Tamil Nadu 933 60.7 26.6 12.7

TripuraUttar PradeshWest BengalUnionTerritories

All India

.110111521188598

1377

6984.378.485.1

73.5

27.413

17.38.8

22

3.62.74.36.1

4.5


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Absolute levels of total government spending on health, family welfare and child

development are absurdly low by international standards, not only in per capita terms but

also as share of GDP. Government spending on health amounts to less than 1 per cent of

GDP. This has meant that a disproportionately large and growing share of the burden of

health care has been borne by households in India, such that they account for an

increasing share of total expenditure (nearly three-quarters in the most recent year for

which data are available). Unlike many other countries, this is completely in the form of

Out-of-pocket expenses, which are inherently regressive. Also, the share of household

consumption expenditure devoted to health care has also been increasing over time,

especially in rural areas where it now accounts for nearly 7 per cent of the household

budget on average.

Origin and Evolution of Primary Health care in India

The study is about history of Health insurance in India Post-Independence. The paper

starts with the Bhore committee report and follows on with major findings and

suggestions of all the reports. The report also places some light on National Rural Health

mission and its strategies.

FICCI Health Insurance Report - 2010

The report covers areas:-

Promoting Quality Healthcare through Health Insurance

Suggested standard format for provider bills

Suggested discharge summary contents

TPA/Insurer contract and concept on standardization of TPA hospital contract

The report covers US healthcare industry and lay guideline for development of Indian

healthcare industry on same patterns.

Rise of health insurance in India Whats driving your revolution, Health conference,

International Finance Corporation, April 20th 2007.

The report covers the areas of healthcare financing in the country. It differentiates the


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growth factors and gives a 35% growth figure for last 5 years from the report date. It

gives the 75-25 ratio of private and public health services.

Research Objective

a) To find out various factors influencing buying behavior towards health insurance


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product.

b) To find out which of these factors are most effective means of advertising health

insurance?

Major Hypothesis

H0 = Word of mouth is not the most effective advertisement for sale of health insurance

products.

H = Word of mouth is the most effective advertisement for sale of health insurance

products.

Research Methodology

Descriptive method is used as research design. The research included Survey method as

data collection tool.

Sample Design: - 1. Target population

a) Delhi working population in IT sector.

b) Lower middle class

c) Rural people who are employed as daily wages labor

2. Sample Size: 140

3. Sample Selection Simple random sampling


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The target population has been intentionally selected with a view to get data from a mix

population. It will help in identifying the behavior of people from different economic

class.

Delhi NCR represents population from various regions as people for all parts of India can

be seen here. The sample size was selected as 150 out of which only 140 respondents

entered data correctly and rest denied sharing any information.

The area in which the survey was conducted was Mehrauli, Vasant Kunj and Kishangarh

as this area has a high concentration of population and a mix which was essential for the

study.

The population mix was intentionally selected as health is basic necessity for all the

population and a survey with the mix gives an in idea of the expenses incurring at various

different social classes.

Data Collection

Secondary data source:

1. Government bodies (National Health care report, Rural Health

Policies, Budgetary provisions, UID program, etc)

2. Private research bodies (McKenzie report on health insurance


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in India, PWC report, FICCI health insurance group report)

3. Research paper published and presented in international

seminars, journals and conferences.

Primary data collection was done through filling up of questionnaire which was designed

to bring out the essentials necessary for completing the survey.

Analysis : This part of the research was done by maintaining a database and later on

processing the database with the help of Statistical softwares.

SPSS which helped in processing of the result for Hypothesis testing.

MS Excel which was used for processing of data other than Hypothesis.

DATA ANALYSIS

1. No of respondents 70 and their distribution on the basis of yearly earnings.

Figure 9

From the readings we have following findings:


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a) No. of Respondents in salary range less than 1lakh is of those people who are

labours, daily wages workers, hawkers etc.

b) No. of Respondents in salary range less than 2lakhs is of those people who are

freshers, some old people who are working as Guards.

c) No. of Respondents in salary range less than 3lakhs is of those people who are in

IT enabled services and small time freelancers.

d) No. of Respondents in salary range less than 4lakhs is of those people who are in

IT field, BPO.

e) No. of Respondents in salary range less than 5lakhs is of those people who are in

IT field and Government employees.

f) No. of Respondents in salary range less than 9lakhs but more than 5lakhs is of

those people who are in IT field, Government service, Self employed.

Do you have an Insurance Policy?

Insurance Policy

Figure 10

The question was asked for General insurance policy and not specific to Health insuranceonly.

The finding suggested that out of 70 respondents

55(79%) have insurance policy,

15 (21%) do not have insurance policy.

Out of those people who do not have insurance policy there are few who have health

coverage from their office.


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Market Share of the organizations providing coverage on the basis of Respondents.

Figure 11

The result is based on insurance policy owned by the respondents.

Out of 70 respondents

LIC has a share of 45%.

ICICI Prudential & Lombard has a share of 13%

Kotak life has share of 6% followed by Max New York Life & HDFC at 4% each.

TATA AIG has a share of 3% & Birla Sun Life has 2 %.

Bajaj Allianz has 1%.

21% of the respondents do not have an insurance policy.

Reason for buying Insurance Policy.

Figure 12

The result is based on insurance policy and not health insurance policy in specific. The

respondents were asked for the reason for buying policy when the bought it first time.


Tax saving 43%

Security 23%

Investment 10%

Other 3%


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Figure 14

The Question was asked in order to find out if word of mouth (Office/Family/Referrals)

has a major share in insurance policy sales.

The data is based on survey of 70 respondents.

21% of the respondents were influenced by Advertisement (Newspaper,

Magazines, Internet, and Hoardings).

40% of the respondents were influenced by the Insurance Advisor.

Family, friends, referrals have 12%.

6 % of the respondents were influenced by Kiosk, Directly from insurance office,

direct calling, and Website sales.

4% of the respondents have other reasons.

21% of the respondents do not have insurance so they did not participate in the

question.

Factors influencing the purchase decision of the policy.

Figure 15

The question was asked for the first insurance policy owned.

The data is based on survey of 70 respondents.

33% of the respondents opted insurance for Savings(Tax Benefit)

17% of the respondents were influenced by advisors.

13% of the respondents have faith in there family, friend, relatives, colleagues.

6% of the respondents were influenced by advertisements.

9% of the respondents have taken policy as an investment option for long time.


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The Question was asked to find, what these other sources are.

Out of 70 respondents surveyed

37% of the respondents have medical coverage from there office.

7% of the respondents are availing medical care and facilities through NGOs

working in the area.

4% of the respondents use the charitable hospital or medicine shops(trust owned)

to get the medical facilities.

19% of the respondents have others which is Government health insurance

schemes at state level and Central level.

33% of the respondents did not had health insurance.

If you buy a Second policy what are the factors which will influence your purchase

decision.

Figure 18

The question was asked to only 55 respondents and the data represents the same.

31 % of the respondents said they will look for new policy.

25% of the respondents said they will look for better services from there

insurance provider.

9% of the respondents said that they would like to fill the gap left by there current

policy.

15% of the respondents will depend on the inputs from there friends, relatives,

colleagues, etc.

Others have 20% of the share with different views.


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Technical factors responsible for effecting purchase decision

Figure 19

The Question was asked to find out factors related to policy which influence buyers

decision.


48% of the respondents will look for Benefits from the Policy cover.

30% of the respondents will look for returns as they think it as safe investment.

20% of the respondents will look for the premium as per their pocket size.

2% of the respondents have other reasons.

Hypothesis Testing


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Table 1

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

WORD OF MOUTH 70 2.9000 1.19358 .14266TV advertisment 70 2.6857 1.44004 .17212

Print Media 70 2.8286 1.39327 .16653

Electronic Service 70 2.2571 1.34795 .16111

Advisor 70 4.3143 .67121 .08022

Table 2

One-Sample Test

Test Value = 3

95% Confidence Interval of

the Difference

t df

Sig. (2-

tailed)

Mean

Difference Lower Upper

WORD OFMOUTH

-.701 69 .486 -.10000 -.3846 .1846

TV advertisment -1.826 69 .072 -.31429 -.6577 .0291

Print Media -1.029 69 .307 -.17143 -.5036 .1608

Electronic Service -4.611 69 .000 -.74286 -1.0643 -.4214

Advisor 16.383 69 .000 1.31429 1.1542 1.4743

Interpretation


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In statistical hypothesis testing, the p-value is the probability of obtaining a test statistic

at least as extreme as the one that was actually observed, assuming that the null

hypothesis is true.

At 95 % level of significance, the p value is .000 and the value of is .95.

Since p < (Electronic Services, Advisor)

p> (Word of Mouth)

Null is accepted and alternate is rejected

Advisor (Insurance) is the most important factor influencing buying behavior.

While testing the hypothesis we also got result were

p< (Advisor)

Hence for this case we can say that Advisors are most effective means of advertisement.

Table 3



Advisor 70 4.3143 .67121 .08022

Table 4



Advisor 70 4.3143 .67121 .08022

FINDINGS

i. The Health Insurance sector in India is facing a tough challenge from Life


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insurance. Life insurance policies are being offered with very low premium

and long term growth prospects. Where as premium for Health insurance plan

seems to be a little on higher side but if we see it in terms of monthly

installment it is very less.

ii. The Priority list of the respondents indicate that insurance is at 5th place. If my

need is in the 5th place then how can I think it over first. It shows a clear lack

of awareness. As most of the population is young(60%) therefore the need

again is suppressed as young people are less prone to health issues.

iii. The type of Insurance graph shows that people are more inclined towards

General insurance or ULIP plans. From the data it is clear that Health

Insurance further has a competition within the insurance sector. Coming of

ULIP plans took the market with a storm and was distributed with every

insurance policy.

iv. When health insurance was replaced with medical benefits or coverage then

number of respondents having health Coverage was 66%. The idea was to

know if the respondents had any type of coverage.

v. Health insurance has a major input from the Govt. of India as still the daily

wages labor depend on these schemes for there basic healthcare fulfillment.

Findings related to Consumer Behavior towards Health Insurance Products.

i. Consumer priority list shows the approach of the consumers. It reflects that

when spending the earnings consumer priority is Food, Clothing, Housing and

then others.

ii. Consumers inclination towards insurance policy and not health insurance

policy was mainly because the need for health expenditure is minimum in

short term and that is being fulfilled by Group insurance programs offered by

Work Place, government bodies, Charitable Hospital and trusts.

iii. Once need is being satisfied the ranking system changes and health insurance

goes down. Other necessities arise which are still there for a never ending

process.


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iv. Factors effecting buying behavior suggests that 44% of the policy holders are

influenced by Advisor followed by Advertisement and word of mouth. It is a

clear indicator of Hypothesis being rejected and null hypothesis being

established.

RECOMMENDATION

1. Health Insurance policy should be designed to cover maximum benefits.

2. Priority list suggests that more informative advertisements on Health Insurance

should be designed and consumer knowledge be enhanced.


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3. Steps should be taken to improve the ranking of health insurance in consumer

listing.

4. The IRDA should look into regulations of current insurance sector and should

work to separate Health insurance from general Insurance.

5. United States has a mandatory health insurance policy and all the states abide to

it. The American model could be followed with modification which suits our

geography and demographics.

6. UID project is an ambitious project of Government of India. It could be used to

give health insurance to all as health is a basic necessity and right to healthy life is

recognized by United Nations and country Governments as Social Security.

LIMITATIONS

1. The Health insurance sector in India is still part of the insurance industry and is

not a separate entity.

2. There is no statistical data available for Health Sector in India. This leads to a

problem were a nation does not have records. Mortality rate and birth rate are


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indicators of life but not Health.

3. In a Metropolitan were basic amenities are necessary, health insurance is mainly

from group insurance provided by offices. These offices deny to share the

knowledge or the data.

4. The study of the Health Insurance sector is a vast field and needs a lot of time and

resources as it touches every aspect of an individuals life. A lot of time and

resources is required to complete an effective research.

REFRENCES

WORKING PAPER NO. 162 MICRO-INSURANCE IN INDIA: TRENDS ANDSTRATEGIES FOR FURTHER EXTENSION Rajeev Ahuja Basudeb Guha-Khasnobis,Jan 2005, pp. 07- 54.

WORKING PAPER NO. 123 HEALTH INSURANCE FOR THE POOR IN INDIARAJEEV AHUJA March 2004, INDIAN COUNCIL FOR RESEARCH ONINTERNATIONAL ECONOMIC RELATIONS


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Covering treatment for HIV and AIDS in India A feasibility study, Indrani Gupta,Mayur Trivedi (Institute of Economic Growth), Christopher Skill, Ashok Rau (FreedomFoundation), Alka Narang, Hari Mohan (United Nations Development Program)

World Health Organization (2002), World Health Report 2002: Reducing risks,promoting healthy life, WHO: Geneva.Report by WHO.Ellis Randal et al (2000), Health Insurance in India: Prognosis & Prospectus,Economic& Political Weekly, January 22, pp. 207-216

Social Health Insurance Health Insurance In India: Current Scenario, Government ofIndia Report 2003.

Overview of Health Insurance Market in India by Dr Somil Nagpal, ICAS (SpecialOfficer, Health Insurance IRDA, Hyderabad).

USAID Report on Private Health Insurance in India: Promise & Reality, February 2008

prepared by Baring Point Inc. for United States Agency for International Devlopment.

Health Status and Attitudes Towards Health in Medical Expenditure Panel Survey(MEPS) Sample Population by Pramit Nadpara, M.S. B.Pharm, West Virginia University

India Vision 2020 Chairman Dr. S.P. Gupta, Planning Commision Government of India,December 2002

Asia-Pacific Regional High-Level Meeting on Socially-Inclusive Strategies to ExtendSocial Security Coverage New Delhi, India, 19 20 May 2008COUNTRY PAPERS INDIA RASHTRIYA SWASTHYA BIMA YOJANA Providinghealth insurance cover to the poor by Anil SwarupMinistry of Labour and EmploymentGovernment of India

General Insurance Industry in India 2009 Casualty Loss Reserve Seminar September 14,2009, By Anita Sathe FCAS, FSA, MAAA

India Life Insurance 2012: Fortune favors the Bold A report by Anu Madgavkar,Tilman Ehrbeck, Nigel Andrade, Ramnath Balasubramanian for McKinsey & Company.

Health Insurance in India Opportunities, Challenges and Concerns

Dileep Mavalankar Ramesh Bhat Indian Institute of Management Ahmedabad

India Pharma 2015- Unlocking the potential of the Indian Pharmaceuticals Market,Gautam Kumra, Palas Mitra Chandrika Pasricha for Mckeinsey & Company

Rise of health Insurance in India : What is driving the revolution, Paper presented atHealth Conference 2007, International Finance Corporation, Washington DC by DeepakMendiratta


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FICCI Health Insurance Report 2010

Government Health Expenditure in India: A Benchmark Study Undertaken for theMacArthur Foundation, India by Economic Research Foundation New Delhi August2006

Healthcare in India Emerging market report 2007 Price Water house Coopers, PCW.

Community Health Insurance in India by N Deadasan, Kent Ranson, Wim Van Damme,Bart Criel

Tables and Figures


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Figure 1

Figure 2


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Figure 3


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Figure 4


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Figure 5

Figure 6


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Figure 7

Figure 8

Figure 9

Figure 10

Figure 11


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Occupation:

Yearly Income:

Q1. Expenditure Priority list. (Rank in ascending order of priority from 1 to 7)

- House rent/Maintenance

- Grocery/Daily needs

- Transportation

- Schooling/Education

- Insurance/Health Insurance

- Bank savings/Mutual funds/equity

- Dinning/vacation/accessories

Q2. Do you have an insurance policy?

If yes, company name.

Q3. Reason for buying policy?

Investment

Tax Saving

Security

Others

Q4. Which type of Policy do you have?

Traditional plan

ULIP

Health Insurance

Pension Plan


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Others

Q5. How did you come to know about the policy?

Advertisement/TV/Newspaper/Magazine/Internet

Advisors

Relatives/Office

Direct selling

Others

Q6. Factors influencing the purchase decision of the policy.

Advertisement

Savings

Return

Advisor

Family/ friends

Q7. Do you have health benefit policy?

Yes

No

Q8. Name of the Source providing medical facilities.

Office Medical coverage/reimbursement policy

NGOs

Charitable Hospital/Trust

Others

Q9. If you buy a Second policy what are the factors which will influence your purchase

decision.

Services offered

New policy in the market

Word of mouth

To fill in the Gaps from first policy.


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Others

Q10. Advertisement mode which influenced your purchase decision

Television advertisement

Newspaper/Magazine

Internet

Word of mouth

Others

Q11. Technical factors responsible for effecting purchase decision

Policy coverage

Premium

Returns

Others

Desert at Ion Final 1

Documents

Transcript of Desert at Ion Final 1