CHAPTER - 6 PRODUCT COMPARISON: ANALYSIS AND INTERPRETATION

Transcription

1 CHAPTER - 6 PRODUCT COMPARISON: ANALYSIS AND INTERPRETATION 6.1 Introduction : This section will help to reveal plus and minus points of Health Insurance Products of Public and Private Sector Health Insurers based upon secondary data collected through websites, annual reports, policy documents, brochures, news papers etc. Apart from it, views from common people regarding Health Insurance Companies and their Products has been taken through questionnaires to make the comparison more reliable and effective. 6.2 Analysis Based upon Secondary Data : Product Comparison This comparison will show the important feature of basic mediclaim policy of the leading companies from Public and Private Sectors. Since 2 Major Player (New India Assurance Company Limited and National Insurance Company Limited) from the Public Sector and 2 Major Player (ICICI Lombard General Insurance Company Limited and Bajaj Allianze General Insurance Company Limited) from Private Sector has been chosen for research so comparison among the Individual Mediclaim Policy of the four companies is given below. The reason to take Individual Mediclaim policy is, that is the basic plan and all other plans are similar in eligibility, coverage, exclusion, claim procedure etc. except of family definition, age of member, some discounts and some extensions. 126

2 Table 6.1 Comparison of Basic Features of Individual Mediclaim Policy The New India The National The ICICI The Bajaj Assurance Insurance Lombard Allianz Company Company General General Limited Limited Insurance Insurance Details of the Company Company Policy Limited Limited Health Individual National Guard Mediclaim Mediclaim ihealth Plan (Individual policy 2012 policy option) What I am covered for? Room Rent/ Room, boarding Maximum 1% of As Actual As Actual Nursing charges and nursing sum insured or maximum 1% of `5000 per day sum insured per which ever Day. is lower, up to maximum 25% of sum insured per hospitalization. Pre Hospitalization 30 Days 30 Days 30 Days 60 Days Post 60 Days 60 Days 60 days 90 Days Hospitalization ICU Charges maximum 2% of 2% of sum As Actual As Actual sum insured per insured or day `10000 per day whichever is lower, upto maximum 25% of Sum insured per hospitalization. Doctors/surgeons/ If not included overall limit of As Actual As Actual Anesthetist fee, in Hospital bill 25% of the sum Blood, oxygen, then maximum insured, Operation Theatre charges `10000 if payment is made in cash, and maximum `20000 if payment is made by cheque. Data and details have been taken from web sites and brochures of respective companies. 127

3 The New India The National The ICICI The Bajaj Assurance Insurance Lombard Allianz Company Company Limited General General Limited Insurance Insurance Details of the Company Company Policy Limited Limited Individual National ihealth Plan Health Mediclaim Mediclaim policy Guard policy 2012 (Individual option) Other No anesthesia, blood, No No Hospitalization oxygen, operation sub-limit theatre charges, surgical appliances, medicines and drugs, diagnostic material, X-ray, dialysis, cost of pacemaker, chemotherapy, radiotherapy, artificial limbs and cost of organs, hospitalization expenses of organ donor and similar expenses subject to an overall limit of 50% of the sum insured. Hospital cash For above `3 No provision Optional cover No Lakh of sum for different sum insured, 0.1% insured that are, per day, but `500 / day for maximum up to `1/2 Lakh, 1% of sum `1000/day for insured per 3/4/5 Lakh, illness. `2000/day for 7/10 Lakh Day care Treatment around 53 Day 140 Day care 140 day care 130 Day Care procedures Procedures care procedures Procedures Ambulance Payable up to Payable up to 1% Up to `1500 per Up to `1000 Charges 1% of sum of sum insured or hospitalization. per insured per `2000 per policy hospitalizati policy period. period whichever is on. lower. Domiciliary Yes Yes No No Hospitalization Organ Donor Yes but do not Yes but do not pay Optional Cover No Charges pay for cost of cost of organ & up to `50000 by organ. subject to an overall paying extra limit of premium 50% of the sum along with insured. Critical Illness. 128

4 The New India The National The ICICI The Bajaj Assurance Insurance Lombard Allianz Company Company Limited General General Limited Insurance Insurance Details of the Company Company Policy Limited Limited Individual National ihealth Plan Health Mediclaim Mediclaim policy Guard policy 2012 (Individual option) Coverage for pre 4 years waiting 4 years waiting 4 years waiting 4 years existing Diabetes period will be period will be period. waiting and Hypertension applicable. applicable. Acceptance of period. proposal will be Acceptance depend upon of proposal Medical will be Underwriting depend upon Medical Underwriting Coverage for Yes after 48 No clear No, Permanently No External Congenital Months, information was excluded. maximum up to given. 10% of Average sum insured. Ayush coverage Up to 25% of Up to 20% of the No No the sum insured sum insured. (exclusive of Cumulative Bonus Buffer). Underwriting Guidelines Entry Age- Min. - 3 month, Min. 3 month, 18 Min. 6 years for Min. 3 Minimum and 18 years for years for proposer. individual option month, 18 Maximum proposer. Maximum 59 and 3 months for years for Maximum 65 years. floater option, 18 proposer. years. years for Maximum Proposer. 65 years. Maximum any age. Renewal Age Life long 80 years Life long Life long Special renewal No above 80 years No No condition renewal can be done up to lifetime by paying 10% additional premium (of years slab) up to 90 years of age and 20% additional premium above 90 years of age. Sum Insured `1 Lakh to `50000 to `5 Lakh `1 Lakh to `10 `1.5/2/3/4/5/ `8 Lakh, in multiples of Lakh. 7.5/10 Lakh, restricted to `3 ` Restricted Lakh for Age to `5 Lakh above 55 year. for Age 56 years and above. 129

5 The New India The National The ICICI The Bajaj Assurance Insurance Lombard Allianz Company Company Limited General General Limited Insurance Insurance Details of the Company Company Policy Limited Limited Individual National ihealth Plan Health Mediclaim Mediclaim policy Guard policy 2012 (Individual option) Family definition Self+ Spouse+ Self+ Spouse+ Self+ spouse+ Self+ Children+ Children+ Parents children Spouse+ Parents Children+ Parents Person per policy 6 6 Maximum 5 in 6 individual plan Policy term 1 year 1 year 1year, 2years 1 year Zone wise Premium Applicable No No No Free Look Period 15 Days 15 Days 15 Days 15 days Grace Period 30 Days Not Mentioned 30Days 30 Days Medical check up >45 years >50 Years >45Years >45 Years Benefits and Discounts Family Discount 10% 10% No provision 10% Cumulative Bonus No provision in 5% for each claim 10% each claim 10% each Mediclaim 2012 free year, maximum free year, claim free 50% maximum 50% year, maximum 50% Health check up At the end of At the end of every Every year At the end benefit every continuous period of every 4 continuous of 4 claim free claim free period of 3 years up to 1% of years. claim free the average sum years. insured. Restricted to `5000 or 1% of the average sum insured. Pre policy check up No provision Yes up to 50% of Yes, 50% Yes, 100% reimbursement the expenses if amount will be amount will proposal is reimbursed if be accepted. proposal is reimbursed accepted. if proposal is accepted. No Claim Discount Sum insured up No provision No provision No provision to `3 Lakh 2%, above 3 Lakh 3%, maximum up to 15%. Convalescence No provision No provision Optional Cover, No provision Benefit up to `10000 for all sum insured along with hospital cash. 130

6 The New India The National The ICICI The Bajaj Assurance Insurance Lombard Allianz Company Company Limited General General Limited Insurance Insurance Details of the Company Company Policy Limited Limited Individual National ihealth Plan Health Mediclaim Mediclaim policy Guard policy 2012 (Individual option) Waiting Periods For Pre existing Disease 48 Month 48 month 48 months for option 1,2L SI, 48 Months Excluding 24 months for all Diabetes and Hypertension. other Sum Insured. 30 Days Yes Yes Yes Yes 24 Months For specific For specific For specific For specific ailments. ailments. ailments. ailments. Waiting period for 2Years waiting 2Years waiting No waiting period No waiting Diabetes and period (from the period(from the if exist during period for Hypertension if it is date of the date of the policy policy period. Diabetes not pre exist or policy initiation) initiation) for and detected after for Diabetes Diabetes and Hypertensio taking policy and Hypertension even n if detected Hypertension if detected during during even if detected policy period policy during policy period Period but if it is pre exist then decision to accept proposal will depend upon medical UW Limits and Co Payments Disease capping Cataract 20% of No capping Not Applicable Cataract (sum insured + on base policy, it 10% of sum cumulative is optional as per insured upto bonus) or list maximum `24000 which `35000 ever is lower, 10% of average sum insured for congenital External Illness Co payment for 20% co pay for No provision No provision 20% co pay higher age ages above 55 for ages years and 20% co above 55 pay years at for the treatment taken outside the opted Zone. entry level 131

7 The New India The National The ICICI The Bajaj Allianz Assurance Insurance Lombard General General Insurance Company Company Insurance Company Limited Details of the Limited Limited Company Limited Policy Individual National ihealth Plan Health Guard Mediclaim Mediclaim (Individual option) policy 2012 policy Co-payment for No provision No provision No provision 10% of claim non network amount, if hospital treatment is taken in non network hospital Voluntary Not applicable Not Yes available Yes available deductible applicable options Note Changes regarding any clause of health insurance products of any of the four companies are considered only up to the financial year Analysis of Product Comparison : Points favors Private Sector Companies: Expenses regarding room rent, boarding, nursing etc. are payable as actually incurred to insured under the plans of private insurers but in public sector New India pays up to maximum 1% of SI per day and National Insurance Company pays up to 1% of SI or `5000 whichever is lower on per day basis. Expenses regarding ICU are payable as actual incurred, in private sector but in public sector New India pays up to maximum 2% of SI per day and National Insurance Company pays up to maximum 2% of SI or `10000 per day whichever is lower but overall limit up to 25% of sum insured per hospitalization. Doctor/Surgeon/Anesthetist fees etc. are payable actual in health insurance policies of private sector companies while New India and National Insurance Company apply some limits on payment regarding the same. In case of Ambulance Charges ICICI Lombard and Bajaj Allianz pay up to `1500 and `1000 per hospitalization respectively but New India and National Insurance Company pay only 1% of SI and 1% of SI or `

8 which ever is lower respectively for one policy period, so the amount is very low for one year. Coverage for Pre and Post Hospitalization charges are wider in private sector in comparison to public sector as some insurers are providing coverage up to 60 and 90 days for pre and post hospitalization while in public sector it is only for 30 and 60 days. No. of Day care procedures which are covered under plan are comparatively less in the plans of public companies as compare to private companies. If we talk about Sum Insured then private insurers offer sum insured up to `10 Lakh but in public sector it ranges `50000 to ` It means private insurers provide wider range of option for sum insured. Some private insurers provide policy with term of 2 years if insured want while in public sector this option is not available. The leading public sector company New India charges premium zone wise and a customer has to pay 20% of claim amount if he get treatment out of that zone for which he pays premium. In all other companies the premium rates same for all over India. Generally all the company asks for pre policy medical check up if insured have age above 45 years or have inverse medical history. In such case if proposal accepted by the company then private insurer refund 50% or 100% of the expense born by the customer for such check up but there are rare public insurers who reimburse such expenses. Diabetes and Hypertension are covered only after 2 years waiting period (from the inception date of the policy) if found during the policy period, and after 4 years if these disease are pre exist, in the plans of public insurers while almost private insurers covered the same from the first day when these detected but after taking the policy. If these are pre exist then 133

9 generally acceptance of proposal is depends upon medical underwriting in private sector health insurance companies. There is no any option like Voluntary Deductibles in public sector health insurance products while it is available in product of almost private insurers. If a customer wants same policy by paying lower premium then Voluntary Deductible option can be helpful here yet customer has to pay some part of claim when it arises. Point favors Public Sector Insurer : Almost all the public sector companies provide coverage for Domiciliary Hospitalization but no private insurer provides such coverage. The public sector companies give coverage for External Congenital Disease/ Anomalies yet some limits and waiting period is applicable but private Sector companies generally do not cover External Congenital Disease in their plans. Option of AYUSH Coverage is available only under the plans of public insurers which range from 20% to 25%. No private insurer covers non allopathic treatment. Cost of Organ donor (excluding cost of organ) is covered under plans of public insurers yet some public company apply some limits in this regard but in private plans such cost is either not covered or can be covered only if customer is ready to pay extra premium. Diabetes and Hypertension whether they are pre exist or found during the policy period are coverable under public insurer s plans but in private sector, proposals generally not accepted if these disease are pre exist. Health insurance policy with lower sum insured (like `50000, `75000) are available in public sectors companies rather in private sectors companies as generally these companies provide policies with sum insured `1 Lakh or more. 134

10 Conclusion of Product Comparison: Though the public sector companies are providing coverage for those thing which are not at all covered in plans of private sector companies such as Domiciliary Hospitalization, Ayush coverage, etc. but if we talk about basic coverage which is always the main considerable point for a customer while taking a policy, private Insurers are seems to be ahead than public Insurers. Private Insurers provide wider coverage with fewer limits, for room rent/nursing charges, doctor fees, pre/ post hospitalization charges, ICU charges, Ambulance charges etc. in their health insurance plans. While in public sector similar coverage are being provided but with several limits. Option of wider range of sum insured, voluntary deductibles option, option of add on covers in the current policy, value added services etc. facilities are provided in only the plans of private sector insurers. These facilities make the plans/policy more suitable to fulfill needs of customer. So on the basis of above analysis we can say that Products of the Private Sector Insurers are more viable, trouble shooter and more suitable to the needs of the customers Premium Comparison for Individual Mediclaim Policy : Since all the four companies (New India Assurance Company, National Insurance Company, ICICI Lombard General Insurance Company and Bajaj Allianz General Insurance Company) have different age slabs for charging premium, so it is difficult to compare premium on basis of age slab. That is why here comparison is made on the basis of fix age. So the chargeable Premium at different age point for Individual Mediclaim policy of the four companies is given below: 135

11 Table Comparison of Premium Rates (in `) for Individual Mediclaim Policy New India Assurance National Insurance Company ICICI Lombard General Bajaj Allianz General Company Ltd. Ltd. Insurance Co Ltd. Insurance Co Ltd. SI 2L 3L 4L 5L 2L 3L 4L 5L 2L 3L 4L 5L 2L 3L 4L 5L Age year * 03% -15% -19% -29% *-16% -15% -07% -08% # 45% -20% 10% -02% # 18% 20% 25% 27% year * 03% -15% -19% -29% *-16% -15% -07% -08% # 45% -20% 10% -02% # 18% 20% 25% 27% * 03% -15% -19% -29% *-16% -15% -07% -08% Year # 45% -20% 10% -02% # 18% 20% 25% 27% year * 51% 19% 31% 05% * 15% 11% 14% 04% # 66% 32% 31% 14% # 26% 22% 14% 13% year * 48% 16% 17% 02% * 13% 08% 02% 02% # 66% 32% 31% 14% # 26% 22% 14% 13% year *74% 35% 31% 16% * 01% -04% -10% -09% # 62% 28% 23% 08% # -06% -09% -15% -15% year * 33% 09% 02% -07% * 01% 06% 06% 12% # 62% 28% 23% 08% # 23% 24% 29% 31% year * 53% 26% 12% -05% * 15% 01% 25% 22% # 47% 21% 03% -11% # 11% -03% 14% 14% year * 85% 54% 36% 16% * 02% -10% 09% 07% #102% 68% 40 16% # 11% -03% 14% 14% year * 128% 89% 60% 38% * 38% 22% 11% 08% # 110% 67% 47% 27% # 28% 07% 02% 00% year *185% 121% 84% 59% * 40% 23% 11% 08% # 198% 122% 94% 68% # 47% 23% 17% 14% year *218% 146% 106% 77% * 29% 20% 14% 07% #195% 146% 106% 77% # 29% 12% 07% 07% year * 211% 142% 103% 75% * 42% 27% 21% 13% # 199% 132% 93% 66% # 42% 22% 15% 08% year * 214% 146% 107% 78% * 57% 35% 29% 07% # 163% 101% 65% 41% # 31% 11% 03% 15% Sources of Premium Rates Page no. 230-D, 259 from Reckoner A Guide to General Insurance, 187 th Edition, PV Prakashan Agara. ihealth Plan - Find Your Fit A Complete Health Insurance, ICICI Lombard General Insurance Co. Ltd. Web Brochure of Health Guard Individual Policy of Bajaj Allianz General Insurance. 136

12 Note: In Bajaj Allianz Sum Insured for Health Guard Policy is start from 1.5 L that is why sum insured from `2 Lakh is taken for comparison. All the premium rates are inclusive of service 12.36%. The premium figures of ICICI Lombard given in the table are without any sub limit. If sub limits are applicable then also premium figures of ICICI Lombard are higher then New India and National. Explanation of calculation: 1. The (*) show that Premium of respective private insurer (ICICI Lombard/Bajaj Allianz) is --% higher (if value is positive) or lower (if value is negative) then the premium of New India Assurance Company for the respective sum insures and age point. Formula: (Premium of ICICI Lombard/Bajaj Premium of New India) * 100 Premium of New India 2. The (#) show Premium of respective private insurer (ICICI Lombard/Bajaj Allianze) is --% higher (if value is positive) or lower (if value is negative) then the premium of National Insurance Company for the respective sum insures and age point. Formula: (Premium of ICICI Lombard/Bajaj Premium of National Insurance Company) * 100 Premium of National Insurance Company Analysis of Premium Comparison From the table above following points can be assessed: 1. Up to the age of 25 years, among all the four companies somewhere premium is higher and somewhere premium is lower, at different level of sum insured and age point. 137

13 2. From the age of 30 years, at different level of sum insured and age point, in private sector companies, premium is comparatively higher then the companies from public sector. Almost 93% of entries in percentage terms are positive which clearly indicates that premium rates in private sector are higher. 3. From the age of 55 years, at different level of sum insured and age points, premium rates are more than double in the health insurance plan of some private sector insurers in comparison to public sector insurers. So based upon above analysis it can be stated that premium rates (which is an important consideration for a customer while choosing a health insurance policy) are lower in health insurance plans of public sector companies then in the plans of private sector companies. 6.3 Analysis and Interpretation based upon Primary Data : Experience of customers regarding Health Insurance Policy, related Services and their Insurers, has been collected. The views from customers, who have health insurance policy from any of the four selected companies, have been analyzed. The collected data and analysis are given below: 1. What is your status regarding Health Insurance Policy? Table: 6.3 Status of Respondents to Health Insurance Aware and Aware and not Not Aware Subscribed Subscribed No. of % No. of % No. of % Respon- Respon- Respondents dents dents No. of % % 47 06% Respondents

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15 Graph Status of Respondents to Health Insurance Status of Respondents to Health Insurance Aware and Subscribed Aware and not subscribed Not Aware 593 Out of 780 People, 593 (76%) have some kind of health insurance, 140 (18%) people are aware about health insurance but still it is not purchased. 47 (06%) people in the sample are not aware about health insurance hence don t have health insurance policy. 2. Why Health Insurance is still unsubscribed even after you are aware about it? Table 6.4 Problem feels in subscription of Health Insurance Problems feels in subscription of Health Insurance Particulars No. of % of Respondents Respondents Feel better to invest in a tool with 42 30% returns Behavioral problem with Insurance 18 13% Personnel Product complication, Co-payments, 29 21% Limits, Waiting Periods etc. Higher premium of needed product 24 17% Network Hospitals are out of reach - - Lack of fund 27 19% Total No. of Respondents %

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17 Graph 6.2 Reason for Non Subscription of Health Insurance Out of 780 people, 140 people are there who are aware about health insurance but didn t purchase it because of some reasons. Approx. 42 (30%) People like to invest where they can earn some returns hence do not like to purchase health insurance. 18 (13%) people are interested to have health insurance policy but they are afraid of behaviors of insurance company s personnel. For 29 (21%) people product complication is a big issue while purchasing health insurance policy. 27 (19%) people are not able to pay premium for their desired policy because of limited earnings and 24 (17%) people feel that the companies are charging higher premium in comparison to benefits provided. Network hospitals are not an issue for non subscription of health insurance. 3. If your status is Aware and Subscribed then Which Sector has been chosen to take Health Insurance policy? Mention the name of Insurer. 140

18 Table 6.5 Number of Policy Holder (insurer wise) No. of % of Name of the Insurer Respondents Respondents (Policy holder) (Policyholder) New India Assurance Co. Ltd % National Insurance Co. Ltd % Other Public Insurers 66 11% A. Total No. of Public Sector Policyholders ICICI Lombard General Insurance Co. Ltd. Bajaj Allianz General Insurance Co. Ltd % % 87 15% Other Private Insurers 59 10% B. Total No. of Private Sector Policyholder Total of Govt. and Private Sector Policyholder (A+B) % % Graph Number of Policyholders Total 593 people, out of 780, in the sample have health insurance from some public/private sector company. 141

19 Out of 332 (56%) policy holders from public sector, 145 people have health insurance from New India Assurance Company, 121 people have health insurance from National Insurance Company while 66 People have health insurance from other public companies. Out of 261(44%) policy holders from private sector, 115 People have health insurance from ICICI Lombard, 87 people have health insurance from Bajaj Allianz while 59 people have health insurance from other private companies. The data given in the table (6.5) clearly states that ratio of public sector policy holders is higher then private sector policyholders. 4. What type of policy you have been chosen? (here we are taking only that policyholders who has been taken HI from the four companies chosen for research work) Table 6.6 Type of policy Policy Type No. &% of Public Sector No. &% of Private Sector Policy Holder from New Policy Holder from ICICI India and National Lombard and Bajaj Allianz Individual Mediclaim 90 34% 64 32% Policy Floter Mediclaim % % policy Total No. of Respondents % % Out of 266 people who have health insurance policy from New India Assurance Company / National Insurance Company, 90 people have Individual Mediclaim Policy while 176 people have Floater Mediclaim Policy. Out of 202 people who have health insurance policy from ICICI Lombard/Bajaj Allianz, 64 people have Individual Mediclaim Policy while 138 people have Floater Mediclaim Policy. 142

20 5. What is the sum insured and No. of members covered in your policy? Table 6.7 Sum Insured and No. of Members covered Sum Insured No. of More Total No. of Up to Up to Up to members than Respondents `1 Lakh `3 Lakh `5 Lakh covered `5 Lakh and its% Only % Up to % Up to % More than % Total No. of Respondents Respondents in% 47% 44% 7% 2% 100% Total 468 people have health insurance from any of the four selected companies (New India Assurance Company, National Insurance Company, ICICI Lombard and Bajaj Allianz). 220 (47%) people have health insurance policy with sum insured up to `1 Lakh only. 98 people out of 220 people, have taken policy for themselves, 54 people took the policy for 2 members, 58 people took the policy for 4 members and rest 10 people took the health policy for covering more then 4 member of his family. 206 (44%) people have health insurance policy for sum insured of more the `1 Lakh but up to `3 Lakh. 55 people out of 206 have taken the policy for themselves. 33 people have health insurance policy by covering 2 members in it. 95 people took the policy for covering up to 4 people and rest 23 people have the health insurance policy for covering more then 4 member of their family. 143

21 Total 33 people have health insurance policy with sum insured more then `3 Lakh but up to `5 Lakh. 8 people out of 33 people took the health insurance for themselves. 7 people have the health insurance for 2 members. 12 people have health insurance policy for more the 2 but up to 4 members. Rest 6 people took health insurance for covering more then 4 members of their family. There are only 9 people who took health insurance policy with sum insured more then `5 Lakh. 7 out of 9 people took the health insurance policy for more then 2 but up to 4 members of their family. Rest 2 people took health insurance for more then 4 members of their family. The data given in the table (6.7) above clearly mention that people don t have exact judgment about their future medical needs as 426 out of 468 people have health insurance policy with sum insured from `1 Lakh to `3 Lakh only by covering 1 to 3-4 family member under the same policy. 6. Are you satisfied with the Premium rates given by the company for your policy? Table 6.8 Satisfaction regarding Premium Rates Level of No. and % of Public No. and % of Private satisfaction sector Policy Holder sector Policy Holder Satisfied % 85 42% Not Satisfied 77 29% 93 46% No Opinion 45 17% 24 12% Total No. of % % Respondents 144

22 Graph 6.4 Satisfaction with Premium Rates Satisfaction with Premium Rates No. of Respondents Public Sector Sectos Private Sector Satisfied Not Satisfied No Opinion Total 266 people in the sample have health insurance from New India/National. Out of 266 people 144 (54%) policyholders are satisfied with the premium, charged by the company for their policy, 77 (29%) policyholders are not satisfied and feel that premium is little bit higher and rest 45 (17%) policyholders have no opinion about the premium rate charged by these companies for their health insurance policy. Total 202 people have health insurance from ICICI Lombard/ Bajaj. 85 (42%) policyholders from private sector are satisfied with the premium, which they are paying for their policy. 93 (46%) policy holder are not satisfied and rest 24 (12%) policyholders don t comment any thing about the current premium charged by their insurer on their health insurance policy. So from the data given above we can clearly judge that satisfaction level regarding premium rates are higher among public sector policy holders rather then in private sector policyholders. The main reason behind it is premium rates for health insurance in public sector companies are lower then private sector companies. 145

23 7. Did your company provide all the details of the policy? Table Information provided regarding the policy Options No. and % of Public sector Policy Holder No. and % of Private sector Policy Holder Yes % % No 37 14% 16 08% Total No. of Respondents % % Out of 266 public sector policyholders 229 (86%) told that their insurer provide all the information regarding the policy, rest 37 (14%) policyholders told that complete information was not provided. Out of 202 private sector policyholders 186 (92%) told that their insurer provide all the information regarding the policy, rest 16 (08%) policyholders told that complete information was not provided. 8. What is your opinion about usefulness of the policy? Table 6.10 Customer perception regarding usefulness of the policy Options No. and % of Public No. and% of Private sector Policy Holder sector Policy Holder Useful % % Not Useful 05 2% 02 1% Not Sure 08 3% 06 3% Not bad 46 17% 32 16% Total No. of Respondents % %

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25 Graph 6.5 Customer s Perception regarding usefulness of Policy Respondent's view about Usefulness of the policy No. of 150 Respondents Public Sector Private Sector Sectors Useful Not Useful Not Sure Not bad Out of 266 policyholders from public sector, 207 people felt the benefits of having health insurance, 5 people feel that it is of no use, 8 people are not sure about usefulness of the health insurance policy and rest 46 people opined that having health insurance policy is not bad. Out of 202 policyholders from private sector, 162 people realize that having health insurance is really beneficial, 2 people feel that it is of no use, 6 people don t have sure idea about usefulness of their health insurance policy and rest 32 people opined that having health insurance policy is not bad. 9. What is the reason for taking the policy from the company you selected from Public/ Private sector? Rank the reason as 1,2,3,4,5,6,7,8 A. Trust B. Security C. Better services D. Fast claim settlement E. Economic Premium F. Easy terms and conditions G. Less official procedure H. Convenience/comfort 147

26 Frequency tables regarding Reasons for selecting the company : Table Trust is the reason Respondents from Public Respondents from Private sector sector Ranks / Frequency Percentage Frequency Percentage Marks Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Private sector Table Economic Premium is the reason Respondents from Public Respondents from Private sector sector Rank/marks Frequency Percentage Frequency Percentage Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Private sector 2.641

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28 Table Better Services is the reason Respondents from Public Respondents from Private sector sector Rank/marks Frequency Percentage Frequency Percentage Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Private sector Table 6.14 Fast Claim Settlement is the reason Respondents from Public Respondents from Private sector sector Rank/marks Frequency Percentage Frequency Percentage Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Private sector 2.492

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30 Table 6.15 Security is the reason Respondents from Public Respondents from Private sector sector Rank/marks Frequency Percentage Frequency Percentage Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Private sector Table 6.16 Easy terms is the reason Respondents from Public Respondents from Private sector sector Rank/marks Frequency Percentage Frequency Percentage Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Public sector 2.306

31 150

32 Table 6.17 Less Official Process is the reason Respondents from Public Respondents from Private sector sector Rank/marks Frequency Percentage Frequency Percentage Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Private sector Table 6.18 Convenience is the reason Respondents from Public Respondents from Private sector sector Rank/marks Frequency Percentage Frequency Percentage Total % % Value of Mean for Public sector Value of Standard Deviation for Public sector Value of Mean for Private sector Value of Standard Deviation for Private sector 1.715

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34 Perception of customer regarding to select an insurance company for buying Health Insurance : Hypothesis 04 : Government company s product are more attractive because of their competitive pricing and public trust. A customer judge several factors while choosing a Insurer. Many times his choice is affected by his personal constraints like limited salary, limited knowledge/information etc. Here we had given the customer 8 important factors which they needed to rate as per their highest priority to lowest priority. As per their ratings marks for a factor has given like if one policy holder rate the trust factor 1 then 8 marks was given to trust factor, if trust was rated as 2 then marks given to trust was 7. Based upon rating given to the 8 factors by policyholders rating and marks table were prepared and Mean marks for each factor has been calculated. Summary of mean marks for each factor is given below : Table 6.19 Comparison of Mean and Standard Deviation of Reasons Public Sector Private Sector Factors Insurers Insurers Mean Standard Mean Standard Marks Deviation Marks Deviation Trust Security Better Services Fast settlement of Claim Economic Premium Easy terms/conditions Less Official process Convenience/ comfort

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36 Graph Weightage of Factors in Public / Private sector Health Insurers Main Consideration while choosing a Private Insurer : As per the table (6.19) given above the highest average marks (6.644) was given to better services by private sector policyholders for selecting the company. 51 (25.2%) policyholders gave it first rank (recorded as 8 marks) and 81 (43.4%) policyholders gave it second rank (recorded as 7 marks). The second rank was given to fast claim settlement with recorded average marks (19.6%) policyholders gave it 8 marks (first rank) and 25 (12.2%) policyholders gave it 7 marks (second rank). So we can say that better services and fast claim settlement was the main consideration of private sector policyholders while choosing the company. Third highest rank was given to trust with average marks Security and economic premium was given fourth and fifth rank with almost similar marks that are and respectively. Sixth, seventh and eight ranks were given to Less official procedure easy terms and convenience respectively. Theses three factors got almost similar marks. Less official procedure got marks. Easy terms got marks and convenience got marks. 153

37 So we can say that the main reasons for selecting the company for taking health insurance policy by policyholders from private sector were the services provided by these companies. The services standard of these companies created trust among people. Main considerations while selecting a Public Insurer : We can clearly see in the table (6.19) given above that highest average marks (6.639) was given to trust factor by public sector policyholders. This factor was given first rank (recorded as 8 marks) by 67 (25.2%) policyholders and second rank (recorded as 7 marks) by 115 (43.4%) policyholders. So we can say that trust was the main concern for policyholders while choosing the company. Second rank (second highest average marks 4.902) was given to the security factor, and it was given 8 marks (first rank) by 61(22.8) policyholders and 7 marks (second rank) by 30 (11.4%) policyholders for selecting the company. The third average marks (4.86) were given to economic premium charged by the company on health insurance policies. 52 (19.6%) policyholders ranked this factor as first and 32 (12.2%) policyholders ranked it as second for choosing the company. The fourth average marks (4.722) were given for better services and fifth average marks (4.703) were given to fast settlement of claim. Easy terms, convenience and Less official procedure was ranked as sixth (average marks 3.703), seventh (average marks 3.469) and eighth (average marks 3.199) for selecting the company. So based upon the data it can be concluded that while choosing a company for taking health insurance policy, the main consideration of public sector policyholders were Trust, Security and Economic Premium while private sector policyholders mainly considered the Services provided by their insurers for taking health insurance policy. As we know that the public insurers are the market leader in health insurance segment in terms of premium amount and no. of people covered, which is a clear indication that people definitely have more trust over public insures and lower premium rates for health insurance plans is a matter of attraction for the customers. Hence the Hypothesis04 Public Company s product are more attractive because of their Competitive Pricing and Public Trust is proved.

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