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CUSTOMER PERCEPTION OF HEALTH INSURANCE _HI_ PRODUCTS A STUDY IN

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					 INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
  International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
  6510(Online), Volume 4, Issue 3, May- June (2013)

ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)                                                        IJM
Volume 4, Issue 3, (May - June 2013), pp. 82-95
© IAEME: www.iaeme.com/ijm.asp                                           ©IAEME
Journal Impact Factor (2013): 6.9071 (Calculated by GISI)
www.jifactor.com




         CUSTOMER PERCEPTION OF HEALTH INSURANCE (HI)
        PRODUCTS: A STUDY IN IMPHAL CITY, MANIPUR (INDIA)

     Rajesh Singh Kumabam*, Dr. Ch. Ibohal Meitei**, S. Sureshkumar Singh*** and
                                K. Birjit Singh****
   *Rajesh Singh Kumabam is a Research Scholar in Manipur Institute of Management Studies
                                             (MIMS),
               Manipur University (A Central University), Imphal – 795003, India.
    **Dr. Ch. Ibohal Meitei is Professor in Manipur Institute of Management Studies (MIMS),
               Manipur University (A Central University), Imphal – 795003, India.
   ***S. Sureshkumar Singh is a Research Scholar in Manipur Institute of Management Studies
                                             (MIMS),
               Manipur University (A Central University), Imphal – 795003, India.
      ****K. Birjit Singh is a Research Scholar in Manipur Institute of Management Studies
                                             (MIMS),
               Manipur University (A Central University), Imphal – 795003, India.



  ABSTRACT

           Health is a major concern for each and every individual. However, there is less debate
  on Health Insurance (HI). This paper attempts to shed light on the existing business
  environment of Health Insurance (HI) in Manipur and study customer perception of Health
  Insurance (HI) in Awareness Level, Schemes, Claim Procedure, Premium and Exclusions of
  Diseases covered under Health Insurance Scheme etc. Further it tries to find out the factors
  that influence buying behavior while opting for a Health Insurance Product. This paper
  concludes with precise concluding remark on the role of all stakeholders including existing
  clients, raising the level of awareness of Health Insurance (HI) and making all understand the
  finer points about the features of it for drawing the full benefits of Health Insurance (HI).
  These findings may be of some use to Decision Makers of Health Insurance Service provider
  in Imphal City, Manipur (India).

  Keywords: Health Insurance, Awareness, Perception and Buying Behavior


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1. INTRODUCTION

         Even in the healthiest of families, if one member has an accident (or falls sick) the
resulting medical expenses can affect the financial and economic stability of the whole
family. The impact depends, in part, on whether the injured person was insured, the size of
the bills, and the family’s income and other resources (Uninsurance, 2002). With Healthcare
financing still a vex issue; the burden of health care spending is passed on to the individual
concern. Financial constraint is a bottle neck for funding Universal Healthcare. Tax-payers’
money can’t pay for healthcare as life expectancy is increasing (Shetty, 2012).
         Insufficient public health provision has compelled the population to turn to private
health providers pushing out of pocket (OOP) spending higher. In India OOP spending is
over four times higher than the public spending on health care (Choudhury, 2012). OOP
spending by households occupies about 72% of the total health expenditure (WHR, 2006) and
it pushes 2.2 percent of the population below the poverty line each year (Peters, A S, R S, G
N V, L H, & A, 2002). OOP expenditures aggravate poverty for those living in both rural and
urban, with more severity (though the impact is felt more) in rural areas (Garg & Karan,
2009). Alternate financing strategy through health insurance (HI) can be an effective option
(Churchill, 2007). Health insurance coverage can give a cushion to impeding financial and
economic burden of a family.
         WHO (World Health Organization) considers health insurance a promising means for
achieving universal health-care coverage (WHO, 2010). In India, only 10 percent Indian has
some form of health insurance, mostly inadequate. In terms of the market share, the size of
the commercial insurance is barely 1% of the total health spending in the country. The Indian
health insurance scenario is a mix of mandatory social health insurance (SHI), voluntary
private health insurance and community-based health insurance (CBHI). Health insurance is
thus really a minor player in the health ecosystem (Dhar, 2012).
         With the enactment of the Insurance Regulatory Development Authority of India
(IRDA), the industry now has a regulatory framework to protect the interests of policy
holders. Stricter regulatory framework is required as is evident in countries where Health
Insurance (HI) plays a dominant role in financing of health expenditures (IRDA, 2003). New
initiatives like Health Insurance (HI) portability can make it more users friendly. Further
reforms like increasing the FDI cap to 49% and reducing capital requirement for health
insurers from the present Rs. 100 to Rs. 50 crores may invite more players in Health
Insurance (HI) and increase the level of Health Insurance (HI) penetration (TOI, 2012).

2. PURPOSE OF THE STUDY

       Consumerism, Changes in the Demographic Profile of the consumers, Changes in
Life Style etc, all these factors will have an impact on the overall demand for better health
care services including Health Insurance (HI). The ultimate burden for these health care
services will be passed on to the general public. If the general public is aware of Health
Insurance (HI), it can play a bigger role in reducing this impeding burden of Health care
expenses. In this perspective this paper “Customer perception of Health Insurance (HI)
Products: A study in Imphal City, Manipur (India)” was carried out.




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3. REVIEW OF LITERATURE

Awareness and Perception: Many studies have been carried out to understand the awareness
and perception of Health Insurance. For a consumer to be interested in an offering, the
consumer must have awareness of the offering and find it acceptable, available at the right
time and place, and affordable (J.N. Seth, R.S. Sisodia, 2008). A study conducted in Bahraich
District, Uttar Pradesh has clearly highlighted that respondent’s perception towards insurance
and savings and their understanding of the benefits are still nascent. Out of all types of
insurance, awareness for Life insurance (38 percent) is by far, the highest followed by vehicle
insurance (15%) and property insurance (10%) (Constella, 2008). It is estimated that only
about 3% to 5% of Indians are covered under any form of health insurance (Rao, 2005). In
their study found out that the need for education for rural and urban population was alike on
the concept of health information which is a crucial aspect on extending awareness about
health insurance on a large-scale (Gumber A, 2000).
         Bhatt, Professor, Finance and Accounting at IIM, Ahmadabad writes that the
penetration of insurance critically depends on the availability of insurance products and
services (Bhatt & Jain, 2006). Almost 79 per cent of health expenditure is borne by private
bodies and the rest by the public. Authors argue that to stimulate private health insurance
growth, the Indian government should recognize health insurance as a separate line of
business and distinguish it from other non-life insurance (Gupta, 2007). If Parliament
approves the recent increase in FDI cap of 49%, the change in law is expected to come as a
huge boon for the health insurance business (TOI, 2012).
         With entry of Private players in Insurance Industry in India, aggressive promotion has
resulted in growth of this sector. However, no one in the industry is taking responsibility to
develop knowledge and awareness of health insurance among the public nor is specific
expertise in health insurance being developed within the private sector, an expertise that is
essential to dealing effectively with providers of health care services. Because of this absence
of specific capacity, Indian companies writing health insurance seem to have focused on
controlling claims payout by following strategies designed to minimize the insured person’s
ability to collect on claims. Because of these practices health insurance has become one of the
largest litigation areas for insurers, exceeded only by motor third party cases (Mathur, Vol
VIII No. 1 January - March 2011). Spread of awareness of all information for health policies
and claim settlement procedure thereof must be ensured by service providers (USAID, 2008).
Also more knowledge about health insurance will help them in making an informed choice
about their purchase (Bhatt & Jain, 2006).

Service Industry: Health Insurance is a service industry. A person taking up a policy is
going to be a customer for 15/20 years, any good or bad experience echoes good and bad
messages to other probable customers. For most first time buyers it is the brand of the
company which acts a catalyst for buying any product/service. Blackshaw identifies six
drivers to brand credibility as trust, authenticity, transparency, listening, responsiveness and
affirmation (Blackshaw, 2008). Health Insurance (HI) falls under the ambit of Service Sector.
A glimpse of 7Ps of marketing mix for service industry is represented in the Figure below.




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                                        Figure 2
                                   The Marketing Mix
  Product management, New product development,             }               Product
  Branding ,Packaging
  Pricing ,Discount structures, Terms of business          }                 Price
  Advertising , Sales promotion, Public relations,
                                                           }              Promotion
  Personal selling , Merchandising
  Channel management, Customer service,
                                                           }                Place
  Physical distribution
  Employee selection, Employee training,
                                                           }                People
  Employee motivation
  Layout, Décor, Ease of access, Forms of
                                                           }          Physical Evidence
  presentation
  How customers are handled and managed from
  the point of very first contact with the
                                                           }        Process Management
  organization through to the point of very last
  contact
                                             Source: Adapted from (Wilson & Gilligan, 2001)

Agents: Private Health Insurance (HI) in India is based on the partner – agent model and
insurance agents are important stakeholder between the Insurer and the Clients. Insurance
agents are the main source of information about HI schemes (Vellakkal, 2009).

4. OBJECTIVE OF THE STUDY

       The main objective of this study is to determine the customer perception of Health
Insurance (HI) Products in Imphal City. In doing so, the article aims to study

   (i) The major source of money to finance the bill in case a family member falls ill.
   (ii). The choice of Company from which Health Insurance (HI) policies are bought.
   (iii). Whether agents are actively selling Health Insurance (HI) products.
   (iv). Major reasons why people who are aware of Health Insurance (HI) intends to stay
          away from buying a Health Insurance (HI) Product.
         Under these objectives following null hypotheses are framed.

    Null Hypotheses:
   (i). H01: There is no relationship between Occupation and Source of Money to finance
   the bill for treatment.
   (ii). H02: There is no difference in the awareness level of Health Insurance (HI) between
   males and females (Gender), Age, Education Qualification, Income and Occupation.
   (iii). H03: There is no difference in opinion among respondents with different Gender,
   Educational Qualification and Occupation that agents are actively selling Health
   Insurance (HI) products.




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5. RESEARCH METHODOLOGY

5.1 Methods of Data Collection, Sample Size and Statistical tools used
       Population could not be determined conclusively. Initially, random sampling sizes of
280 respondents are taken for this study. Out of these 16 samples are rejected. So, Random
sampling size of 264 is taken for the final analysis. Information is collected by using
questionnaire.

5.2 Schematic Representation of all steps of how the analysis has been done:

   Figure 1: Flow Chart showing the schematic stepwise analysis of the questionnaire




                                                        Source: Primary Data


5.3 Data Analysis

         Data collected through structured questionnaire were analyzed using SPSS. The
statistical techniques namely descriptive statistics that is mean, standard deviation, percentage
and Chi Square test are mainly used to test the hypotheses.




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6. Data Analysis and Discussion

   6.1        Demographic profile of the Sample

                                           Table 1
                                      Profile of Sample
            Personal information                  No. of respondents       Percent
                      Female                              100               37.9
         Gender
                      Male                                164               62.1
                      <20                                 36                13.6
                      20-40                               148               56.1
          Age
                      40-60                               64                24.2
                      >60                                 16                 6.1
                      Undergraduate                       44                16.7
     Educational      Graduate                            80                30.3
     Qualification                                        100
                      Post-graduate                                         37.9
                      Professional degrees                40                15.2
                      Below Rs. 15000                     64                24.2
         Monthly      Rs. 15000 to 30000                  120               45.5
         Income                                           52
                      30000 to 45000                                        19.7
                      45000 and above                     28                10.6
                      Private employee                    60                22.7
                      Govt. employee                      92                34.8
      Occupation
                      Own business                        60                22.7
                      Others                              52                 19.7
                                                                 Source: Primary Data

       The above Table No. 1 indicates the overall profile of the Sample. It consists of a
Sample size consists of 37.9% Females and the remaining 62.1% Males. 56.1% of
Respondents belong to the Age Group (20 – 40) years, where 24.2% belongs (40-60) years
and 6.1% belongs to above 60 years of Age. In case of Educational Qualification 37.9% of
the Sample were Post Graduate, 30.3% were Graduate and 15.2% were Professional Degree
Holders. 45.5% of the Sample belongs to the Monthly Income Group of Rs. (15,000 –
30,000), 24.2% were below Rs. 15,000 and 10.6% were Rs. 45,000 and above. 34.8% of the
Respondents were Government Employee and 22.7% were Private Employees & Own
Business. The Remaining 19.7% of the Respondents belongs to Others Group.



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6.2              Data Analysis on Family Member falling sick, Expense incurred in Treatment
              and Source of Money:

                                             Table 2
               Percentage of Sickness, Expense incurred in Treatment and Source of Money
                            Personal information                    No. of         Percentage
               Family member (s) No                                   60              22.7
               falling sick       Yes                                204              77.3
                                  Below Rs. 5000                      12               4.5
                                  Rs.5000 to Rs. 10000                20               7.6
               Expense incurred
                                  Rs.10000 to Rs. 15000              100              37.9
               in treatment
                                  Above Rs.15000                      72              27.3
                                           Mean(SD)                     10189(6590)
                                  Out of pocket                       88              33.3
                                  Reimbursement from                  96              36.4
               Source of money
                                  Insurance                           16               6.1
                                  Others                              4                1.5
                                                                           Source: Primary Data

        From the above Table 2, it is observed that 77.3 % of respondents agree with the
statement that in the past one year a family member (within the family) had fallen sick.
37.9% of those who falls sick spend Rs. 10,000 to Rs. 15000 in a year for treatment. Every
family spends on an average of Rs. 10189 for treatment with standard deviation Rs. 6590.
Majority (36.4%) of the Respondents reimburse their expense for the treatment from service.
33.3% of the respondents met the expenses from their pocket (Out of Pocket) while a meager
6.l% and 1.5% through Insurance and Others respectively.

6.3 Data Analysis on Occupation and Source of Money to finance treatment

                                               Table 3
                          Occupation and Source of Money to finance treatment

                               Source of money                       Total     Chi -     P-
                      Out of     Reimburs.   Insurance     Other              Square    Value
       Pvt.
Occcupation




                16(28.6) 24(42.8)         4(7.2)           0(0)     44(100)
       Empl.
       Govt.    4(5.6)      68(94.4)      0(0)             0(0)     72(100) 36.825 <0.001
       Empl. 44(78.6) 0(0)
       Own                                8(14.3)          0(0)     52(100)
       Busi.
       Others 24(50)        4(8.3)        4(8.3)           4(8.3)   36(100)
       Total 88(37.9) 96(41.4)            16(6.9)          4(1.7)   204(100)
   N.B. – Figures in brackets indicate percentage                        Source: Primary Data

         In the Table above, majority of the respondents (94.4%) employed in Government and
42.8% in Private sectors reimbursed their expenses for treatment. While maximum (78.6%)
of Business Owners and 50% Others financed though Out of Pocket (OOP) for treatment. It is
statistically tested that the relation between Occupation and Source of Money for treatment is
highly significant with p-value less than 0.001(i.e. <0.001). Null Hypothesis (H01) is rejected.
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6.3 Awareness of Health Insurance (HI)

                                            Table 3
                               Awareness of Health Insurance (HI)

 Personal                                 Awareness of HI                     Chi-       P-
                                                                     Total
 information                              No (%)     Yes                      square     value
                   Female                 76 (76.0) 24 (24.0)        100
                   Male                   76 (46.3) 88 (53.7)        164
 Gender                                                                       5.593      0.018
                                          152
                                                     112 (42.4)      264
                   Total                  (57.6)
                   <20                    32 (88.9) 4 (11.1)         36
                   20-40                  68 (45.9) 80 (54.1)        148
                   40-60                  40 (62.5) 24 (37.5)        64
 Age in Year                                                                  6.318      0.097
                   >60                    12 (75.0) 4 (25.0)         16
                                          152
                                                     112 (42.4)      264
                   Total                  (57.6)
                   Undergraduate          40 (90.9) 4 (9.1)          44
                   Graduate               56 (70.0) 24 (30.0)        80
 Educational       Post-graduate          56 (56.0) 44 (44.0)        100
                   Professional                                               19.865     <0.001
 Qualification                            0 (0.0)      40 (100.0)    40
                   degrees
                                        152
                                                       112(42.4)     264
                   Total                (57.6)
                   Below Rs. 15000      52 (81.3)      12 (18.8)     64
                   Rs.15000 to 30000    76 (63.3)      44 (36.7)     120
 Monthly
                   30000 to 45000       24 (46.2)      28 (53.8)     52       14.273     0.003
 Income
                   45000 and above      0 (0.0)        28 (100.0)    28
                   Total                152(57.6)      112(42.4)     264
                   Private employee     20 (33.3)      40 (66.7)     60
                   Govt. employee       48 (52.2)      44 (47.8)     92
                   Own business         44 (73.3)      16 (26.7)     60
 Occupation                                                                   7.410      0.060
                   Others               40 (76.9)      12 (23.1)     52
                                        152
                                                       112(42.4)     264
                 Total                  (57.6)
  N.B. – Figures in brackets indicate percentage                          Source: Primary Data

         Table 3 above indicates that 57.6 % of the respondents are not aware of Health
Insurance (HI). Higher percentages, i.e., 53.7% of the male respondents are aware of Heath
Insurance (HI) in contrast to 24% for Females. And, it is statistically tested that there is a
significant difference in the level of awareness of Health Insurance (HI) between male and
female with p-value 0.018. It is observed that a significant percentage, 54.1% of the
Respondents in the age group (20 – 40) years are aware about Health Insurance (HI). But it
is statistically tested that there is no significant difference in the level of awareness of Health
Insurance (HI) between different age groups with p-value 0.097. It is also observed that 100%
of the Respondents with Professional Degrees are aware of Health Insurance (HI). It is
statistically tested and observed that there exists a highly significant difference in the level of

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awareness of Health Insurance (HI) among individuals with different Education Qualification
with p-value less than 0.001. 100 % of the Respondents with monthly income Rs. 45,000 and
above are aware of Health Insurance (HI). And, it is statistically tested that there is significant
difference in the level of awareness of Health Insurance (HI) among respondents belonging to
different income groups (monthly income) with p-value 0.003. Higher percentage, 66.7% of
the Respondents with Occupation in Private Sector are aware of Health Insurance (HI) as
against other sectors. But it is statistically tested that there is no significant difference in the
level of awareness of Health Insurance (HI) among respondents belonging to different
occupation with p-value 0.060.

6.4 Data Analysis on Reason for not aware, Willingness to buy, Purchase Percentage
    and Source of Information about Health Insurance (HI)

                                        Table 4
           Reason for not aware, Willingness to buy, Purchase of HI and Information
                                     Source for HI

                                                       No. of respondent      Percentage
               Never heard about it                            132               86.8
               Not aware about the benefit                      12                7.9
Reason     for
               Nobody approach                                  4                 2.6
not aware
               Others                                           4                 2.6
               Total                                           152               100.0
               No                                               4                 2.6
Willingness to
               Yes                                             148               97.4
buy
               Total                                           152                100
               No                                               60               53.6
Purchase HI    Yes                                              52               46.4
               Total                                           112                100
               Agent                                            44               84.6
Information    Friend                                           4                 7.7
about      HI
comes from     Others                                           4                 7.7
               Total                                            52                100
                                                                      Source: Primary Data

        From the table above, it is observed that 86.8% of the Respondents cited “Never heard
about it” as the reason for ‘not aware’ of Health Insurance (HI). 97.4% of the Respondents
say that they are willing to buy Health Insurance (HI). But only 46.4% of the Respondents
have purchased a Health Insurance (HI) policy. Main (84.6%) source of Information about
Health Insurance (HI) comes from Agents (Insurance Agents).




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6.5 Data Analysis on Agents activity in Selling Health Insurance (HI)

                                          Table 5
                       Agents Actively Selling Health Insurance (HI)
                                                Actively selling              Chi-      P-
                                    Disagreed      Neutral        Agreed     square value
                  Female              4    16.7 16 66.7          4    16.7
    Gender        Male               36 40.9 20 22.7 32               36.4    4.176   0.124
                  Total              40 35.8 36 32.1 36               32.1
                  Undergraduate       0     0.0    0    0.0      4   100.0
                  Graduate            8    33.3 4 16.7 12             50.0
 Educational      Post-graduate       4     9.1 20 45.5 20            45.5
                                                                             13.089 0.042
 Qualification    Professional
                                     28 70.0 12 30.0             0     0.0
                  degrees
                  Total              40 35.8 36 32.1 36               32.1
                  Private employee   20 50.0 4 10.0 16                40.0
                  Govt. employee     16 36.4 28 63.6             0     0.0
  Occupation      Own business        4    25.0 0       0.0     12    75.0 15.105 0.019
                  Others              0     0.0    4 33.3        8    66.7
                  Total              40 35.8 36 32.1 36               32.1
                                                                       Source: Primary Data

        From the Table above it is statistically tested that there is no significant difference in
opinion among respondents with different Gender (male and female) that agents are actively
selling Health Insurance (HI) with p-value 0.124. Whereas statistically there is significant
difference in the opinion among respondents with different Educational Qualification (p-
value at 0.042) and Occupation (p-value at 0.019) that agents are actively selling Health
Insurance (HI).

6.6 Data Analysis on Reasons for not purchasing Health Insurance (HI)

                                           Table 6
                     Reason for not purchasing Health Insurance (HI)
               Reason for not purchase               Frequency        Percentage
    I do not need it                                      0               0.0
    No return from investment                            60              25.9
    High premium charge                                  52              22.4
    Poor service provider                                56              24.1
    Alternate sources to fund health related cost         8               3.4
    No empanelled hospitals in Imphal                    56              24.1
    Others                                                0               0.0
   Multiple response tabulated                                Source: Primary Data

From the Table above, it is observed that “No return from Investment”, “Poor Service
Provider”, and “No empanelled Hospitals in Imphal” as the reason for not purchasing Health
Insurance (HI).



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6.7 Choice of Company from which Health Insurance (HI) policies are bought

                                     Table 7
                 Company from which Health Insurance (HI) are bought
   Parameter Analyzed             Name of the Company    Frequency             Percent
                                 ICICI Prudential            14                 26.9
                                 NIC                          4                  7.7
                                 LICI                         8                 15.4
                                 Bajaj Allianz                4                  7.7
                                 Amsure (Max Life)            7                 13.5
                                 Birla Sunlife                2                  3.8
    Company from which HI        HDFC Life                    2                  3.8
      policies are bought
                                 Metlife                      0                  0.0
                                 SBI Life                     3                  5.8
                                 TATA AIA                     1                  1.9
                                 Reliance                     3                  5.8
                                 IDBI Fortis                  1                  1.9
                                 ICICI Lombard                3                  5.8
                                 Others                       0                   0
                                                                     Source: Primary Data
        From the above Table, respondents say ICICI Prudential Life, LICI and Amsure (Max
Life) are the top three companies; respondents bought Health Insurance (HI) policies from.

6.8 Analysis of awareness of Health Insurance (HI), Scheme, Diseases not covered,
Premium and Claim Procedure

                                      Table 8
   Awareness of Health Insurance (HI), Scheme, Diseases not covered, Premium and
                                 Claim Procedure
                                                          No. of respondents        %
                                          Medium                   44              84.6
      Awareness of HI                     Highly aware             8               15.4
                                          Total                    52              100
                                          Medium                   48              92.3
      Awareness of scheme                 Highly aware             4                7.7
                                          Total                    52              100
                                          Less aware               24              46.2
      Awareness of disease not cover by   Medium                   24              46.2
      HI                                  Highly aware              4               7.7
                                          Total                    52              100
                                          Less aware                4               7.7
                                          Medium                   44              84.6
      Awareness of HI premium
                                          Highly aware             4                7.7
                                          Total                    52              100
                                          Less aware               32              61.5
                                          Medium                   16              30.8
      Aware of claim procedure
                                          Highly aware             4                7.7
                                          Total                    52              100
                                                                Source: Primary Data


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        From the above Table, the awareness level of Health Insurance, Awareness of
Scheme, Premium in Imphal are ‘medium’ with a score of 84.6% , 92.3% and 84.6%
respectively. In case of Awareness of diseases not covered by Health Insurance (HI),
respondents awareness level is in ‘medium’ and ‘less aware’ with a score of 46.2%. The
awareness of Claim procedure for Health Insurance in Imphal is “less aware” having score of
61.5% out of the Total Respondents.

6.8 Analysis on the reason for the purchase of Health Insurance (HI)

                                           Table 9
                    Reason for the purchase of Health Insurance (HI)
    Reason for the purchase of HI                      No. of respondents       %
    Attractive schemes                                          36             22.0
    Tax benefit                                                 32             19.5
    Expecting health problems                                    8              4.9
    Better health care to family                               12               7.3
    To protect from rising cost of health care                  44             26.8
    Cover big expenses                                          32             19.5
    Total                                                      164             100
     *Multiple responses tabulated                              Source: Primary Data

       From the Table above, 26.8% attributes “To protect from rising cost of Health Care”
as the major reason for purchasing Health Insurance. “Attractive schemes”, “Tax benefit”
and “Cover big expenses” are also important reasons for purchase of Health Insurance (HI).

6.9 Analysis on factors that influence purchase of Health Insurance (HI)

                                        Table 10
                Factors that influence purchase of Health Insurance (HI)
                                                              No. of
    Factors that influence in purchase of HI                                     %
                                                           respondents*
    Trust worthiness of company                                 52              17.1
    Better Schemes Offer                                        32              10.5
    Existing insurance with the Company                          8               2.6
    Personal Relationship                                       32              10.5
    Easy claim settlement                                       28               9.2
    More Coverage of Diseases                                    24             7.9
    Low Premium Cost                                             20             6.6
    Better marketing by Agent                                    44            14.5
    Tax Saving                                                   28             9.2
    Advertisement                                                36            11.8
    Total                                                        304           100
     *Multiple responses tabulated                              Source: Primary Data



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International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 4, Issue 3, May- June (2013)

       From the Table above, Trust worthiness of company, Better marketing by Agent and
Advertisement are the three important factors that influence purchase of Health Insurance
(HI).

7. CONCLUSION

        One important observation is people intend to take up HI if they are explained
explicitly about it. But in contrast majority of people who know about health insurance does
not own a HI policy. So, there seems to be a gap. And all stakeholders in Health Insurance
(HI); Insurance companies, insurance agents, probable customers, existing clients etc. have a
major role to play in increasing enrolment for Health Insurance (HI) policies. For a society
like ours, level of unemployment is very high. Since major chunk of the population are
unemployed, financing for treatment through Out Of Pocket (OOP), which occupies a
sizeable section of respondents, will have a dent on the socio-economic pattern of the masses.
Overall increase in the enrolment of Health Insurance (HI) therefore will be a “win win” for
all stakeholders.

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