A STUDY TO INVESTIGATE THE REASONS FOR

INDIVIDUALS NOT INVESTING IN HEALTH

INSURANCE
By Rachita Prakash T
CHAPTER ONE
 INTRODUCTION

 This study aims to investigate and analyse the consumer awareness relating to the
insurance services offered in the Indian market. The data collected for this study is
by questionnaire method.
 The study is focused to analyse the impact of awareness relating to the various
insurance services rendered in the Indian market and investigate the reasons for
not investing in health insurance.
 This research will enable us to understand impact of; whether the awareness
regarding insurance services provided are effective or not in influencing the
consumer towards insurance services.
 To analyse their requirements in order to understand the reasons for lack of
interest in health insurance.
INDUSTRY PROFILE

• Health Insurance in India was launched in the year 1986. Since its inception, the health
insurance industry has grown exponentially due to Economic growth and general awareness
among the public.
• The economic policy and liberalization process adhered by Government of India since 1991
created opportunities for privatization of insurance sector in the country. The Insurance
Regulatory and Development Authority (IRDA) bill, passed in Indian parliament, marks the
significant beginning of developments having significant implications for the health sector.
• Currently in the Indian market there are various health insurance providers consisting of
standalone as well as government sponsored. The health insurance sector in India has shown
a huge transition due to the advent of private health care financing, growth in income,
health consciousness among the different strata of society, price liberalization and variety of
choices.
COMPANY PROFILE

• New India Assurance Co Ltd, today, is a 100 per cent Government owned
multinational general insurance company operating in 22 countries and
headquartered at Mumbai, India.
• New India Assurance was founded by Sir Dorabji Tata during 1919 and was
nationalised during the year 1973.
• The company’s Indian operations today span across all territories through 2452
offices, including more than 1339 Micro Offices. As of 30th June 2017 the company
consisted of 17702 employees and 68389 tied agents, providing insurance services
to the customers.
VISION AND MISSION

VISION
To be the most respected, trusted and preferred Non-life Insurer in the Global markets
we operate.
MISSION
 To develop General Insurance Business in the best interest of the community.
 To provide Financial Security to Individuals, Trade, Commerce & all other
segments of the Society by offering Insurance products & Services of High Quality
at affordable Cost.
QUALITY POLICY AND PROMOTERS

QUALITY POLICY
 Highest priority to Customers needs
 High standards of Public Conduct
 Transparency in operations

PROMOTERS
PRESIDENT OF INDIA
SERVICE PROFILE

PERSONAL
INSURANCE

SOCIAL COMMERCIAL
INSURANCE INSURANCE

LIABILITY INDUSTRIAL
INSURANCE INSURANCE
SWOT ANALYSIS

 Strengths
Skilled workforce
Barriers of market entry
High growth rate
Opportunities
New acquisitions
Growing demand
New products and services
Growth rates and profitability

 Weaknesses Threats
Future competition Unexpected problems
External business risks
Tax structure
Price changes
Costs
Global economy
High loan rates are possible
CHAPTER TWO
THEORETICAL BACKGROUND

 Return on investment
 100% coverage
Premium for health insurance
 Modern facilities
LITERATURE REVIEW

 Banerjee. (2009)1 find that out-of pocket health expenditure represents about 10% of total
household expenditure among slum dwellers in Hyderabad, India.
 Ippolito (1992)2 says that fund/scheme selection by investors is based on past performance
of the funds and money flows into winning funds more rapidly than they flow out of losing
funds
 Omar and Frimpong (2006)3 stressed the importance of life insurance and regarded it as a
saving medium, financial investment, or a way of dealing with risks.
 Black and Skipper (2000)4, is of opinion that life insurance becomes the mechanism to
ensure a continuous stream of income to the beneficiaries. The two main services provided
by life insurance: income replacement for premature death and long-term savings
instruments.
LITERATURE REVIEW

 Rajkumari (2007)5 in her study undertaken to identify the customers' attitude

towards purchase of insurance products concludes that there is a low level of
awareness about insurance products among customers in India.
 Dupas & Robinson (2009)6 find that health expenditure represents 8% of total
household expenditure.
 Shen & McFeeters 2006, Cunningham 20097 has identify to give some perspective,
in the United States, out-of-pocket health expenditure, excluding insurance
premiums, is typically considered unaffordable if it is more than 5% of family
income
CHAPTER THREE
STATEMENT OF PROBLEM

Chronicle disease not covered under insurance

Money not returned to me when it is unused
Not enough money to invest in health insurance
Company is taking care of my health insurance
It does not cover non-hospitalization expenses
Other investment opportunities
Attitude of people
NEED FOR STUDY

 To understand the reasons as to why individuals prefer not investing in health

insurance.
 To find other areas of investments which individuals prefer investing in rather than
medical insurance.
 To find the gap between what health insurance companies offer to the individuals
and needs of the individuals which are not met by the insurance companies.
OBJECTIVE OF THE STUDY

• To do literature review to understand the probable reasons for individuals not

investing in health insurance.
• To create questionnaire and collect information on the probable reasons for
individuals not investing in health insurance.
• To analyse the data collected and make suitable recommendations for the
organization to increase investment in their health insurance.
SCOPE OF THE STUDY

 This study aims to investigate and analyse as to why individuals prefer not to invest
in health insurance. The data collected for this study is by questionnaire method.
 The study is focused to analyse drawbacks and the reasons as to why individuals
choose other investments avenues rather than health insurance.
 This research will enable us to understand the reasons as to why the health
insurance sector is facing a near stagnant growth in the Indian market and also areas
of opportunities for the health insurance sector from the customer’s perspective.
METHODOLOGY

Method for data collection

Basic questionnaire
Analytical techniques
Regression
Correlation
Anova
LIMITATION OF THE STUDY

The geographical area of study is limited to urban area of Bangalore city, India.
The sampling method utilized for this study is simple random sampling which
covers a part of the population.
Other methods of securitised investment are not taken into consideration.
There is a constraint with regard to time allocated for the research study.
THANK YOU