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DPU: INTERDISCIPLINARY CONFERENCE
Year : 2020  |  Volume : 7  |  Issue : 5  |  Page : 62-64

A study on consumer's understanding of health insurance benefits


Global Business School and Research Centre, Dr. D. Y. Patil Vidyapeeth, Pune, Maharashtra, India

Date of Web Publication26-Feb-2020

Correspondence Address:
Deepali Garge
Global Business School and Research Centre, Dr. D. Y. Patil Vidyapeeth, Pune, Maharashtra
India
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Source of Support: None, Conflict of Interest: None


DOI: 10.4103/jdrr.jdrr_71_19

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  Abstract 


Background: India is way behind many developing countries such as China, Sri Lanka, and Vietnam in terms of some health indicators and health insurance utilization. Aim: The study aimed to evaluate: (1) the source of health insurance in India, (2) the awareness of health insurance in India, and (3) to measure the satisfaction level of investors on health insurance provider. Methodology: Primary data were collected through the questionnaire among 102 general population of Maharashtra. Results: Ninety-seven percent are aware of health insurance and also have a policy. About 47.1% have all the family members covered under the health insurance, whereas 8.5% said that only the head of the family is covered. About 79.4% of the consumers were satisfied with the service provided by their health insurance provider. In the private sector, Apollo Munich and ICICI Lombard are among the ones which were preferred by the people. Sources of awareness of health insurance include employer, the Internet, newspaper, friends, and television. Conclusion: It is concluded that there is a need to create awareness among people for health insurance. Health insurance investment should not look at contingency, but it must be a regular habit. Nearly 79.4% of consumers of our sample are satisfied with the current service provider of health insurance.

Keywords: Awareness, health insurance, insurance providers


How to cite this article:
Garge D, Tare S, Das S. A study on consumer's understanding of health insurance benefits. J Dent Res Rev 2020;7, Suppl S2:62-4

How to cite this URL:
Garge D, Tare S, Das S. A study on consumer's understanding of health insurance benefits. J Dent Res Rev [serial online] 2020 [cited 2020 Apr 8];7, Suppl S2:62-4. Available from: http://www.jdrr.org/text.asp?2020/7/5/62/278908

Editor: Dr. Pradnya Kakodkar





  Introduction Top


Insurance are mainly to cover the future risk. It could be life insurance, house insurance, and health insurance. Life insurance is very popular in India unlike health insurance. Health insurance is flourishing business in India due to the continuous growth in population. Awareness among people is also considerable. In the last 5 years, insurance industry flourished in a very good manner. With the rise of gross domestic product of India, the total number of registered insurer is also rising. Different policies introduced by the government helped to make people aware of health insurance. After privatization, health insurance captured market. People in India mainly invest in insurance for better returns.

Vehicles for promoting health insurance in India

The Government of India announced Ayushman Bharat on Independence Day, 2018, which is also known as Pradhan Mantri Jan Arogya Yojna. This is a government-sponsored health insurance scheme. This will provide free coverage of up to ' 5 lakh per family per year at any government hospital or even empanelled private hospitals all over India. This scheme aims to cover around 10.74 crore families and 50 crore citizens. In the private sector, there are many health insurance providers. Apollo Munich is currently the leading insurance provider. Under section 80D of the Income Tax Act, 1961, the premium paid toward insurance is exempted. Newborn babies are also eligible to get health insurance in private sector. The age belt for health insurance applicability has been increased from newborn baby to 65 years. Some policies also offer coverage against the traditional Ayurveda, Yoga, Unani, Sidhha, and Homeopathy forms of medical treatment.

The Insurance Institute of India[1] has published, a book titled “Corporate Agents,” in 2016 which gave a detailed description on life insurance in India as well as financial planning, health insurance, health insurance products, claims, underwriting, etc., Post literature review, it has been observed that the most important problem of health insurance in India is the lack of knowledge about the available health insurance players and easy premiums.

With reference from the National Health Insurance Scheme and its success in Nigeria and Ghana,[2] the present study has been planned among the general population to evaluate the following: (1) the source of health insurance in India, (2) the awareness of health insurance in India, and to (3) to measure the satisfaction level of investors on health insurance provider.


  Methodology Top


The present study was based on the descriptive research. The primary data were collected through the questionnaire method. The total sample size was 102 respondents. The study duration was 45 days. The two authors (DG and SD) collected the data from their personal contacts (family and friends) from different parts of Maharashtra. The secondary data were collected through various research papers. Insurance Regulatory and Development Authority of India is also referred for the purpose of data collection.


  Results Top


From the total collected data (102), we have found that 65% were male and 35% were female. The average age group of 21–40 years, i.e., 55.9%, whereas 35.3% is from 41 to 60 and 8.8 is above 60 years. From the sample collected, it has been observed that 58.8% of them are privately employed, whereas 29.4% are self-employed, and 11.8% have government job. As per their education level, 52.9% are graduated, whereas 38.2% are postgraduates, 2.9 are undergraduates, and 5.9% hold a Ph.D. degree. Most of their earnings range from 2.5 lakhs to 5 lakhs, i.e., 47.1%, whereas 26.5% have annual income between 5 lakhs and 7 lakhs, 20.6% have 7 lakhs to 10 lakhs range, and 5.9% have more than 10 lakhs. In the present study, the awareness of health insurance (97%), i.e., 99 are well aware of the insurance schemes and 3% are not aware. It has been observed that out of 99 who are well aware about health insurance, for 46 of them, the source of awareness is their employer, i.e., the organization they are working in, while 20.2% were aware through Internet, 12.1% were aware through newspaper, 11.1% were aware through friends, and 10.1% were aware through television [Figure 1].
Figure 1: Sources of awareness regarding health insurance

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From the gathered data, 97%, i.e., 99 of them are having health insurance policy, whereas the remaining 3% do not have. Most of the respondents, i.e., 47.1%, have all the family members covered under the health insurance, whereas 8.5% said that only the head of the family is covered and 44.1% said no family members covered under the health insurance. Out of the total sample of 99 having the health insurance policy, none of them have the term period for lifetime. The annual premium to be paid by most of the consumers was in the range of rupees, 5000–10,000, i.e., 35%, whereas 32.4% have the range of 1000–5000. Similarly, 32.4% consumers have annual premium range between 10,000 and 25,000. Most of the consumers, i.e., 61.8% prefer to have an average coverage of 1 lakh to 5 lakhs, whereas 26.5% have coverage of 5 lakhs to 10 lakhs, and 4.8% have coverage above 10 lakhs.

It was observed that among the private sector insurance companies, majority (29.4%) of consumers have Apollo Munich Health Insurance Company as their service provider, whereas 17.6% have ICICI Lombard Insurance Company, and 14.7% have Religare Health Insurance. The other information is exhibited in [Figure 2].
Figure 2: Distribution of the private sector health insurance provide

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Nearly 58.8% of the consumers have claimed the health insurance, whereas 41.2% have not claimed yet. In the present research article, it has been analyzed that 79.4% of the consumers were satisfied with the service provided by their health insurance provider, whereas 8.8% of the consumers were not satisfied, and 11.8% were not sure if they are satisfied or not.

As per the analysis, it was observed that 58.8% of the consumers were of the opinion that they are well informed about vital information of the health insurance scheme while applying and 29.4% of the consumers were not much sure about the information provided to them at the time of the purchase and 11.8% said that no vital information was provided to them.


  Discussion Top


The present study reveals that the knowledge about the people about health insurance is good. Health insurance became popular in the 20th century in India. India is way behind many developing countries such as China, Sri Lanka, and Vietnam in terms of some health indicators[3] Life insurance is a very known concept to many consumers in India, but health insurance is yet to become popular, especially in rural area. The term “insurance” in “life insurance” is not an acceptable product where “health insurance” is different from “life insurance,” which is explained briefly in this paper.[4]

The employer efforts make an influence on the people. They are found to send reminders for payment of premium, the claim settlement period, and service received from the Health Insurance Company. These efforts create satisfaction among them, and they get a feeling that the people life is important, and health insurance policy is required to take care of their life.

Among the private players, Apollo Munich and ICICI Lombard were the highly preferred ones among the people. However, an advertisement about their product heavily in the newspapers and television may have influenced the people to opt for them. However, other private players also have their fair share of choice among the people.

About 58% of people are aware of all the details of the policy. The application form for opting the insurance policy is big one and very few agents explain all the details in the form. Otherwise, majority of them just take the required signature and fill it later on without giving any information. Further, about 58.8% of people have claimed for the benefit and are satisfied with the service.

This study has been done among a small sample of the people, and the results cannot be generalized to the whole population of India. It is recommended that further study be done using bigger sample size and giving equal representation to urban and rural population and studying their preference pattern.


  Conclusion Top


On the basis of the data analyzed, it is concluded that there is a need to create awareness among people for health insurance. Health insurance investment should not look at contingency, but it must be a regular habit. It has been concluded that 79.4% consumers of our sample are satisfied with the current service provider of health insurance.

Financial support and sponsorship

Nil.

Conflicts of interest

There are no conflicts of interest.



 
  References Top

1.
Venugopal P. Corporate Agents IC 38. Insurance Institute of India; Mumbai, India 2016.   Back to cited text no. 1
    
2.
Oni MA, Olayinka B, Ntiwunka GU, Ogu MI. Awareness of and Access to National Health Insurance Scheme in Nigeria and Ghana. IOSR J Hum Soc Sci 2019;24:57-69.  Back to cited text no. 2
    
3.
Niculae M. Attitude & preference of people towards health insurance J Adv Manage Res 2017;5:31-4.  Back to cited text no. 3
    
4.
Chaudhary V. Health insurance: A study of consumer's satisfaction and awareness. Res J Hum Soc Sci 2019;10:371-5.  Back to cited text no. 4
    


    Figures

  [Figure 1], [Figure 2]



 

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