Health Insurance: A Study on Customer’s Satisfaction and Awareness

 

Dr. Vijeta Chaudhary

Ph.D. M.Phil. (Economics), Faculty of General Management, N. L. Dalmia Institute of Management Studies and Research, Srishti, Sector-1 Mira Road (East) Mumbai, 401104

*Corresponding Author Email: Vijeta.chaudhary@nldalmia.edu.in

 

ABSTRACT:

Insurance is a contract (policy) that helps an individual to reduce the financial loss or hardship by getting a reimbursement against from an insurance company. According to Lloyds of London “Insurance is the main way for businesses and individuals to reduce the financial impact of a risk occurring” insurance is social device which has become a driving pillar of a nation’s risk management system. It is broadly categorized into life and non-life insurance. Life insurance provides financial support to a family in case of death of a family member. Non-life insurance is contracts that do not come under the ambit of life insurance are called general insurance. The different forms of general insurance are fire, marine, motor, accident, health and others.

 

KEYWORDS: Health Insurance, Life Insurance, Financial, Reimburses.

 

 


INTRODUCTION:

Health is an important indicator in present world to estimate socio as well as economic development of the country UNDP also include an indicator in their human development index (HDI) i.e. life expectancy. United nations have also been taken health indicators in their millennium development goals such as infant mortality rate (IMR), Under 5 child mortality rate and maternal mortality rate.

 

Health Insurance:

Health insurance is a medical insurance given by an insurance company, wherein it reimburses the medical expenses incurred for a valid hospitalization. The individual has to pay a certain amount (subject to conditions) once each year, known as premium to keep the health insurance policy active. Health insurance in India is considered same as hospitalization where the policy covers the hospitalization expenses.

 

 

The expenses for hospital bed, nursing, surgeon’s fees, consultant doctor’s fees cost of blood, operation theatre charges are all covered. Certain diseases which are mentioned in the policy’s terms and conditions shall be excluded from coverage or may be covered only after one or two years of the policy issue date.

 

Figure.1 No. of Indians with health insurance from 2011-12 to 2016-17, (in millions)

Source: www.statista.com/statistics/657244/number-of-people-with-health-insurance-india/

 

The world health report 2000 highlighted the fact that the performance of a health system affects people lives and livelihood. The challenges of the health care system are to make health care equitable and sustainable with an efficient use of resources. Increasing utilization of health services is the prime goal of developing countries like India.

 

In Indian content health is a very important issue. Health status in India is very poor. In India, the high levels of fertility and mortality is contributed mostly by a group of states now treated termed as empowered action group (EAG) states formerly referred to as BIMARU states. These eight states are Bihar Jharkhand, Uttar Pradesh Uttarakhand, Madhya Pradesh, Chhattisgarh Orissa and Rajasthan. These eight states constitute 46% of the total population of India and account for 59% to the total poor in India. These states alone contributes to more than half (55%) to the estimated life birth, 66% of infant death and 80% of maternal deaths in India.

 

Public health is a primarily the responsibility of the state government. The central government, however guides and supports major schemes for improving the health status of the people. Public health expenditure has an important enhance the utilization of health services, especially by the vulnerable population who cannot utilize other source due to the condition of cost. Expenditure on health, as on any other good is worthwhile as long as the benefits it brings exceed those that could be obtained by other form of expenditure. My study aimed at to expenditure. My study at to examine the trends of public expenditure and health indicators in India.

 

Awareness is Necessary:

Conception of awareness on insurance products among the customers is a vital task to all the insurance companies. The customers always purchase the products those which are aware by him. Insurance products are not such as other products in the market. The consumer can easily identify and know about the products and its benefits in other than insurance market, but it is very difficult to know about the products and its benefits without proper explanation by the insurance agents or detailed advertisement. So that insurance companies have to pay special attention regarding to create the awareness on the products which are introducing into insurance market.

 

REVIEW OF LITERATURE:

S. Kamalaveni and B. Suganya (2017) the study conclude used to analyse the star health insurance brand awareness level among consumers and it also highlights the efficiency of the different marketing or promotional tools used for the purpose. The objectives of most marketing campaign are to create and maintain brand preference. The analysis was done with the help of the data collected through questionnaire taking the sample size of 124 in an around Coimbatore. The collected data is analyzed using analytical tools like simple percentage, rank correlation and chi-square test. As per the findings, suggestions are given to the company to take initiation to fulfil the consumer needs.

 

V. Sini and Dr. C. R. Karpagam (2016) Health insurance is insurance against the risk of acquiring medical expenses among individuals. By estimating the overall risk of health care and health system expenses, among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The main objective of the study is to study about the awareness towards health insurance policies of different companies and to study about the factors that influence health insurance premium among the policy holders. For this purpose a sample of 150 was collected and percentage analysis, chi-Square tests, weighted average were used as tools to analyse the data and the conclusion.

 

Nilay Panchal (2013) as social beings, we are at, all times disposed to falling sick or receiving a disease. Sometimes even an alteration in the environment causes illness. Health care is very costly these days. Additional than the disease itself, it is regularly the cost of treatment that takes its toll. Health insurance policy covers medical expenses incurred during pre and post hospitalization stages. In present study, it was found that because of minor awareness people are not have health policy and some time because of lack of financial tools people not buying health insurance or they are not have enough money because of high premium by the view point of them.

 

Aanchal Aggarwal and Nupur Kapoor (2013) the study concluded that the Indian health insurance scenario today is a mix of governmental insurance schemes, social health insurance voluntary private health insurance and community- based health insurance (CBHI). The government is actively encouraging new infrastructure, expanding the reach of healthcare to remote areas via ICT and providing novel medical equipment explanations.

 

Dileep Mavalankar and Ramesh Bhat (2002) the researcher concludes that India has limited experience of health insurance and is going to develop rapidly in future. He is also suggested that the India should proactively make efforts to develop social health insurance patterned after the German model where there is universal coverage, equal access to all and cost controlling measures such as prospective per capita payment to providers.

 

OBJECTIVES OF THE STUDY:

Objective of the study is to know the awareness of health insurance between the consumers. The study targets at the following specific objectives-

·       To examine the awareness and consummation level of consumers towards health insurance.

·       To examine the customers purpose for purchasing health insurance.

·       To identify how many people are aware about insurance and investment.

 

RESEARCH METHODOLOGY:

Fred Kerlinger “Research is an organized enquiry designed and carried out to provide information for solving problems”.

 

“Research can be classified according to purpose or stage in the decision making process, it is claimed that the research purpose or stage in the decision making process, determines the characteristics desired in the research design.” (Silverman, 2005).

 

In this study the researcher used convenience sampling. The sample was selected according to the convenience of the researcher this is an empirical study based on survey method. Tonk district has been purposely selected for the study. Tonk District is a district of the state of Rajasthan in western India. The city of Tonk is the administrative headquarters of the district.  In this Research, We have taken Sample size of 124respondents. The primary data has been collected with the help of structured interview schedule questionnaire. The study was conducted in Tonkarea were only limited population was chosen on random basis. Due to time constraint, the sample size is limited to 124 and the study area is restricted to Tonk. In this study the researchers sample size is 124

 

Data Analysis and Interpretation:

Table. 1 Age of the Respondents

Age

No. of Respondents

Percentage (%)

0-20

29

23.39

21-40

51

41.13

41-60

44

35.48

 

The above table shows that 23.39 % of the respondents

Are Below 20 years, 41.13% of the respondents are 21to 40 years, and 35.48 % of the respondents are 41-60 years.

 

Figure. 2 Age of the Respondents

Table. 2 Gender of the Respondents

Gender

No. of Respondents

Percentage (%)

Male

66

53.23

Female

58

46.77

 

The above table shows that 53.23% of the respondents

are male and 46.77Female.

 

Figure. 3Gender of the Respondent

 

Table. 3 Qualifications of the Respondents

Qualification

No. of Respondents

Percentage (%)

Illiterate

-

-

Primary

6

4.34

High school

45

36.29

Intermediate

39

31.45

Graduate and above

34

27.42

 

The above table shows that all the respondents were Educated. Maximum number of respondents (31.45%) 27.42% was graduate or intermediate, 36.29%  respondents were high school pass and only 4.34% respondents had education up to primary level.

 

Figure. 4 Qualifications of the Respondents

 

Table.4 Locality of the Respondents

Locality

No. of Respondents

Percentage (%)

Urban

27

21.77

Semi Urban

38

30.65

Rural

59

47.58

 

The data shows that 21.77% respondents belonged to urban area. And the 47.58% respondents belonged

to rural area.

 

Figure. 5 Locality of the Respondents

Table.5 Occupation of the Respondents

Occupation

No. of Respondents

Percentage (%)

Govt. Service

10

8.06

Private Service

23

18.55

Business

34

27.43

House wives

14

11.29

Farmer

43

34.67

 

Table 5 shows that maximum respondent 34.67% were belonged to agriculture Class, 18.55% belonged to private service, 8.06% belonged to government service,  11.29% belonged to house wives.

 

Figure. 6 Occupation of the Respondents

 

Table.6 Source of Health Policy Awareness

Source

No. of Respondents

Percentage (%)

Television

21

16.94

Newspaper

16

12.90

Friends and Relatives

25

20.16

Doctors

23

18.55

Policy Agent

39

31.45

 

The above table discloses that 16.94% respondents aware by television, 12.90% respondents aware by newspaper, 20.16% respondents aware by Friends and Relatives, and The 31.45% of the respondents aware by policy agent.

 

Figure. 7 Source of Health Policy Awareness

 

Table.7 Knowledge about Health Insurance Company’s Terms and Conditions

Response

No. of Respondents

Percentage (%)

Yes

55

44.35

No

69

55.65

 

The above table reveals that 44.35% of the Respondentsare aware of health insurance and 55.65% of the respondents are not aware of star health insurance.

 

Figure. 8 Knowledgeabout Health Insurance

 

Company’s Terms and Conditions

Table.8 Health Insurance Policies Purchased by Respondents

Responses

No. of Respondents

Percentage (%)

Yes

46

37.09

No

79

63.71

 

The above table 8 reveals that 37.09% of thepolicy

Purchased by respondents.

 

Figure. 9 Health Insurance Policies Purchased by Respondents

 

Table.9Are you Satisfied with the Policy Provided by Company/ Agent?

Responses

No. of Respondents

Percentage (%)

Yes

51

41.13

No

73

58.87

 

The above table 9 reveals that 41.13 % of the

Respondents satisfied with the policy.

 

Figure. 10 Satisfied with the Policy Provided by Company/ Agent?

 

Table.10 Health Insurance Companies are Transparent

Responses

No. of Respondents

Percentage (%)

Yes

41

33.06

No

83

66.94

 

The above table shows that 67% respondents were agreed for that health insurance companies are not transparent because to maximize their business is only aim for them.

 

Figure. 10 Transparency of Health Insurance Companies

 

Chi-Square Test:

Chi-Square test is a non-parametric test of statistical significance for bi-variant tabular analysis. A non-parametric test, like chi square, is a rough estimate of confidence. Chi-square is used most frequently to test the statistical significance of results reported in bi-variant tables.

 

Association between Age and Satisfaction on Service Delivered:

 

Ho: There is no association betweenage and satisfaction on service delivered.

 

H1: There is association between age and satisfaction on service delivered

Chi square calculated = 6.812

Chi square table value = 15.507

 

Table.11 Chi-Square Test

Test

Value

D. f

Asymp. Sig (2-sided)

Pearson Chi-Square

6.812

8

.351

 

The above table shows about the relationship between age and satisfaction on service provided were the significance level is at 0.351 which is greater than 0.05 which shows that there is no significant relationship between age and satisfaction on service provided and age need not be taken while taking satisfaction of service in to attention.

 

Association between Qualification and Health Insurance Policies:

Ho: There is no association between qualification and health insurance policies purchased by respondents

 

H1: There is association between qualification and health insurance policies purchased by respondents

Chi square calculated = 9.136

Chi square table value = 16.919

 

Table. 12 Chi Square Test

Test

Value

D. f

Asymp. Sig (2-sided)

Pearson Chi-Square

9.136

9

.0358

 

The above table shows about the relationship between qualification and health insurance policies purchased by respondents were the significance level is at 0.358 which is greater than 0.05 which shows that there is no significant relationship between qualification and Health insurance policies purchased by the respondents.

 

CONCLUSION:

Health insurance is a medical insurance given by an insurance company, wherein it reimburses the medical expenses incurred for a valid hospitalization. The Indian health insurance industry is increasing at a wild bound and so are the issues and challenges related to carrying in interaction with in the system. With growing health care cost, increasing non-refundable income and high out of pocket expenditure for funding healthcare, the only way forward for financing healthcare in a country like India is through health insurance mechanism. Respondents’ knowledge and confidence about health insurance is good. Further research indicates that awareness about the existence of health insurance is fine but preference is average.

 

REFERENCE:

1.      Panchal, N. (2013). Customer’s perception towards health insurance. An empirical study in Bardoli and Mandhvi Region. Indian Journal of Applied Research3(4), 62-64.

2.      Kamalaveni, S., and Suganya, B. (2017). A Study of Work Life Balance of Women Employees with Reference to Garment Sectors in Tirupur. Asian Journal of Management8(2), 127-131. http://www.indianjournals.com/ijor.aspx?target=ijor:ajm&volume=8&issue=2&article=002

3.      Kundu S. (2009). Health Insurance-An Alternative Healthcare Financing Mechanism in Rural India. Indian Journal of Human Development, 3(2).

4.      LadusinghLaishram and Pandey Anamika, “Health Expenditure and Impoverishment in India”, 2013 Journal of Health Management, 2013, pp.57-74.

5.      Agarwala Amar Narain, “Health insurance in India”, east End Publishers, the University of California, 13 Dec 2007, p 4.

6.      Amsavani, R. and Gomathi,S. (2013), “A study on satisfaction of mediclaim policyholders with special reference to Coimbatore City”, RVS Journal on Management ,Volume 6 ,No 1,pp.10-23.

7.      Bhat, Ramesh and Reuban, Elan (2001), “Management of claim and reimbursements: the case of mediclaim insurance policy”, Helponet, Vol 27, No 4, pp.16-28.

8.      Ali Sajid, Mohammad Riyaz and Ahmad Masharique, “Insurance in India: Development, Reforms, Risk Management, Performance”, Regal Publications, New Delhi, 2007, p 35

9.      Ellis,R.P., Alam ,L. and Gupta ,Indrani (2000), “Health Insurance In India-Prognosis and Prospectus” Economic and Political Weekly ,Vol 5,No 2, pp.207-217.

10.   Kundu S. (2009). Health Insurance–An Alternative Healthcare Financing Mechanism in Rural India. Indian Journal of Human Development, 3(2).

11.   LadusinghLaishram and Pandey Anamika, “Health Expenditure and Impoverishment in India”, 2013 Journal of Health Management, 2013, pp.57-74.

12.   Panchal, N. (2013). Customer’s Perception towards Health Insurance. An Indian journal of applied research, 3(4), 62-64.

13.   Vijay Kumar and Dr. J. ShanmuganandaVadivel (2016) “A Study on Awareness towards Motor Vehicle Insurance Based on Credit Policy With Reference to Coimbatore” International Journal of Current Research and Modern Education, Vol-I, Issue-I, 2016.P.No.457-462. http://rdmodernresearch.org/wp-content/uploads/2016/12/319.pdf

 

 

 

 

Received on 05.02.2019         Modified on 04.03.2019

Accepted on 18.04.2019      ©AandV Publications All right reserved

Res.  J. Humanities and Social Sciences. 2019; 10(2):371-375  

DOI: 10.5958/2321-5828.2019.00063.9