Sathyabama

A Study on Preference and Perception of Health Insurance In LIC Policy
Submitted in partial fulfillment of the requirements for the award of
Master of Business Administration
by
T. VIJAYA RAJ
39410231
SCHOOL OF BUSINESS ADMINISTRATION
SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, RAJIV GANDHI SALAI, CHENNAI - 600 119
APRIL – 2021
SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with “A” grade by NAAC I 12B Status by UGC I
Approved by AICTE
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai – 600 119
www.sathyabama.ac.in
SCHOOL OF BUSINESS ADMINISTRATION
BONAFIDE CERTIFICATE
This is to certify that this Project Report is the bonafide work of MR. T. VIJAYARAJ 39410231
who have done the Project work entitled A Study on Preference and Perception of Health
Insurance In LIC Policy under my supervision from December 2020 to March 2021.
Dr. D. VELUMONI.
Internal Guide External Guide
Dr. BHUVANESWARI G.
Dean – School of Business Administration
Submitted for Viva voce Examination held on _______________
Internal Examiner External Examiner

DECLARATION
I Vijayaraj .T 39410231 hereby declare that the Project Report entitled A Study On
Preference and Perception of Health Insurance In LIC Policy done by me under the
guidance of Dr. D. VELUMONI,MBA,M.PHIL,PH.D is submitted in partial fulfillment of
the requirements for the award of Master of Business Administration degree.
DATE:
PLACE: T. VIJAYARAJ.
ACKNOWLEDGEMENT
I am pleased to acknowledge my sincere thanks to Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for
completing it successfully. I am grateful to them.
I convey my sincere thanks to Dr. BHUVANESWARI G., Dean, School of
Business Administration and Dr. PALANI A., Head, School of Business

Administration for providing me necessary support and details at the right time during
the progressive reviews.
I would like to express my sincere and deep sense of gratitude to my Project Guide
Dr. D. VELUMONI School of Business Administration for her valuable guidance,
suggestions and constant encouragement paved way for the successful completion
of my project work.
I wish to express my thanks to all Teaching and Non-teaching staff members of the
School of Business Administration who were helpful in many ways for the completion
of the project.
T. VIJAYARAJ
TABLE OF CONTENTS
S.NO CONTENTS PAGE NO

ABSTRACT
I
LIST OF TABLES II
LIST OF FIGURES III
CHAPTER-1 1.1 Introduction 1

1.2 Life Insurance Corporation of India 3
1.3 History and Development 4
4
1.4Industry profile
1.5 Formation of the Insurance Industry in 5
India
1.6 Health insurance products available in 6
India
1.7 Importance of Health Insurance 8
1.8 Benefits of having a Health insurance
9
Policy
1.9 Formation of company
9
1.10 Vision 11
1.11 Mission
11
1.12 Objectives of LIC 11
1.13 Functions of LIC in India
12
1.14 Organization structure
13
1.15 SWOT Analysis
1.16 Statement of the Problem 14
15
1.17 Purpose of the study
1.18 Need for the study 16
16
1.19 Scope of the study
1.20 Objectives of the Study: 16
1.21 Limitations of the study
16
17
CHAPTER-2 2.1 Review of Literature 18

2.2 Perception of customers 25
CHAPTER-3 3.1 Research methodology 27
3.2 Methodology and Data sources 27
3.3 Research design 27
3.4 Descriptive Research Design 27
3.5 Sources of data 27
3.6 Collecting the Information 28
3.7 Analyse the Information 28
3.8 Structure of questionnaire 28
3.9 Sampling techniques 28
3.10 Analytic tools 28
CHAPTER-4 4.1 Percentage analysis 29

4.2 T – TEST 47
4.3 CORRELATION 49
4.4 ANOVA
CHAPTER-5 5.1 Finding 53

5.2 Suggestion 55
5.3 Conclusion 56
Reference 57
ANNEXURE - I(Questionnaire) 62
ANNEXURE – II(Article) 65
ABSTRACT
Every human being has the tendency to save to protect him from risks or events of future.
Insurance is one form of savings where in people try to themselves against risks or
uncertainties of future. Health insurance is insurance against the risk of incurring medical
expenses among individuals. By estimating the overall risk of health care and health
system expenses, among a targeted group, an insurer can develop a routine finance
structure, such as a monthly premium or payroll tax, to ensure that money is available to
pay for the health care benefits specified in the insurance agreement. Insurance is related
to the protection of the economic values of the assets. The main objective of the study is to
study about the awareness towards health insurance policies of different companies and to
study about the factors that influence health insurance premium among the policy holders.
Hence social security, protection of the family, economic empowerment to the poor and
disadvantaged are integral part of the right to life. Insurance companies tend to have
widely diversified portfolios and to focus on high-quality investments; thus they were
relatively well protected initially during the period of financial turbulence, when asset value
declines were concentrated in lower-quality and higher risk assets. For this purpose a
sample of 130 was collected and percentage analysis, chi-Square tests, weighted average
were used as tools to analyze the data and the conclusion is that the respondents are
neutral about tax benefit, risk coverage & saving, security with high return which shows
that they are unaware about the aspects and if the company tries to give more
advertisements about the products then the level of awareness about the product can be
increased in future period of time and if the company tries to reduce the claim span of the
respondents then the level of satisfaction of the policy holders can be increased in future
period of time.
Key Words: Insurance, Benefit & Risk Coverage, Social security, Protection of the family,
High-quality investment.
I.
LIST OF TABLES
TABLE NO. LIST OF TABLES PAGE NO
4.1 Frequency Analysis for Age of the 29
respondents
4.2 Frequency Analysis for Gender of 31
the respondents
4.3 Frequency Analysis for Level of 32
education
4.4 Frequency Analysis for Occupation 33
4.5 Frequency Analysis for Awareness 34
about health insurance
4.6 Frequency Analysis for Type of 35
health insurance policy
4.7 Frequency Analysis for Persuaded 36
to purchase policy
4.8 Frequency Analysis for Factors 37
while choosing health insurance
4.9 Frequency Analysis for Premium 38
payment
4.10 Frequency Analysis for Reason for 39
purchase
4.11 Frequency Analysis for How long 40
do you associated with current plan
4.12 Frequency Analysis for premium 41
amount
4.13 Frequency Analysis for problems 42
during claims
4.14 Frequency Analysis for level of 43
satisfaction
4.15 Frequency Analysis for how often 44
do you consult the insurance agent
4.16 Current plan period and Gender 47
Table
1
4.17 Preference of company and 48
education level.
4.18 Showing Age and Income from 49

Awareness.
4.19 Showing Level of education and 50

Type of Health insurance.
Showing Age and Preference of 51
4.20 company.
4.21 Showing Pay alimony and Gender 52
2
LIST OF CHARTS
TABLE NO LIST OF CHARTS PAGE NO
4.1 Age of the respondents 34
4.2 Gender of the respondents 35
4.3 Frequency Analysis for Level of 32
education
4.4 Frequency Analysis for Occupation 33
4.5 Frequency Analysis for Awareness 34
about health insurance
4.6 Frequency Analysis for Type of 35
health insurance policy
4.7 Frequency Analysis for Persuaded to 36
purchase policy
4.8 Frequency Analysis for Factors while 37
choosing health insurance
4.9 Frequency Analysis for Premium 38
payment
4.10 Frequency Analysis for Reason for 39
purchase
4.11 Frequency Analysis for How long do 40
you associated with current plan
4.12 Frequency Analysis for premium 41
amount
4.13 Frequency Analysis for problems 42
during claims
4.14 Frequency Analysis for level of 43
satisfaction
4.15 Frequency Analysis for how often do 44
you consult the insurance agent
3
1
1
CHAPTER - 1
INTRODUCTION
1.1 INTRODUCTION ABOUT THE STUDY
Health insurance is an agreement whereby insurance company agrees to undertake

a guarantee of compensation for medical expenses in case the insured falls ill or
meets with an accident which leads to hospitalization of the insured. Generally,
insurance companies have tie-ups with the leading hospitals so as to provide
cashless treatment to the insured. In case the insurance company has no tie-ups
with the hospital, they reimburse the cost of expenses incurred by the insured. The
government also promotes health insurance by providing a deduction from income
tax.
The Insurance industry in India has seen an array of changes in the past one
decade. The economic scenario which emerged after globalization, privatization and
liberalization has thrown a new challenge before the insurance sector. Insurance is a
protection against economical losses arising due to an unexpected event. In any
type of insurance coverage claim settlement plays very important part .claim
settlement is an integral part of the insurance business. A claim settlements an
agreement between two or more parties to settle a legal claim with payment and
other terms. The most common form of claim settlement involves an insurance
claims. An insurance claim is the only way to officially apply for benefits under an
insurance policy. The customers know well about their rights and remedies,
availability of various grievance Redresses mechanisms, progressive decontrol...The
present study attempts customer perception on claim settlement services in life
insurance companies. LIC of India is still leading life insurance provider. Due to
strong management framework of claims settlement. Insurance industries in India
nowadays have taken a giant shape especially after privatization and introduction of
insurance regulatory and development authority (IRDA). The claim intimation should
consist of basic information such as policy number, name of the insured, death of
date, cause of death, name of the claimant etc. As the regulation 8 of the IRDA
Regulation, 2002. The insurer is required to settle a claim with in 30day’s of receipts
of all documents including clarification sought by the insurer. If the claim requires
1
further investigation, the insurer has to complete its procedure within 6 months from
receiving the written intimation of claim. The payment by the insurer to the insured
on the date of maturity is called maturity payment. The amount payable at the time of
the maturity includes a sum assured and bonus/incentives, and it is to be returned to
the office along with original policy document, ID proof, Age proof if age is not
already submitted, and any copy of climates’ Bank book cancelled cheque. The life
insurance policy can be attached with different rider like accidental rider, critical
illness rider, Hospital cash rider, waiver of premium rider etc for critical illness,
necessary medical documents such as first investigation report, Doctor Prescription,
Discharge summary etc are required. For accidental disability rider, attested copy of
FIR, Doctor Certificate of disability, original medical bills with prescription/treatment
papers etc are required.
Life of an individual and a family is generally peaceful unless any kind of health issue
arises which is in decisive and cannot be predicted before its occurrence. Needs
such as desire of owning a house or a motor car or any other instrument of social
status or other consumer durables of comfort can be postponed if the family has
shortage of savings and limited sources of income. But, this is not the case with the
unforeseen medical obligations which need immediate cash flows and have an
adverse impact on the savings of the family. Financial commitments on medical
grounds can certainly ruin long term financial goals of a family which may include
education or marriage of children and retirement plans besides desires stated supra.
One may wonder about a solution to overcome such situations and the answer to
this is none other than health insurance which will help in maintenance of good
health of an individual and a family without creating any possibility of financial crisis
and hindering financial stability. Health insurance is a product of general insurance
that covers expenses related to medication and surgery of an insured which could be
an individual, family or a group of people. It is an arrangement where an individual,
family or a group purchase health care coverage in advance by payment of a fee
called as premium. In other words, health insurance is an arrangement that helps to
delay, defer, reduce or avoid payment related to medical expenses of an insured.
The insurer will either ensure cashless treatment of medical ailments or provide a
reimbursement of medical expenses incurred under the policy in any of the network
hospitals across the country.
In health insurance, there are pre-payments and pooling. So people pay a small
2
amount when they are healthy. This contribution is shared by many people and is
used to meet the health care cost of enrolled members when they need it. Health
insurance operates in circumstances where people are risk-averse i.e. they prefer
the certainty of insurance to the uncertainty of illness. They are then willing to pay a
premium to cover the costs of a medical event. Health insurance is basically a tool to
minimize uncertainty.
The health insurance market in India is exclusive and has considered a strong
growth potential in the current years with the opening of a lot of overseas company
into the marketplace. The health insurance market in India was worth INR 5,125
crores with a compounded yearly development time of 37 percent between 2002 and
2008. While the access of the health insurance market is reasonably little, it is one of
the highest rising industries in India. Indian health insurance market is following other
countries in terms of access. Indian health insurance is one of the most rapidly rising
sectors in the Indian insurance sector. Also, Indian health insurance has gross
premiums increased by 16 per cent from Rs 13,212 crore in 2011-12 to Rs 15,341
crore in 2012-13. The health insurance premium has registered a compounded
yearly expansion rate (CAGR) of 32 % for the past eight financial years.
1.2 LIFE INSURANCE CORPORATION OF INDIA

The development of the life insurance market as positive effect on economic growth.
The LIC was founded in 1956 when the parliamentary of India passed the life
insurance of India act that nationalized the private insurance industry in India.LIC
slogan is in Sanskrit “yoga kshemem waham yaham” which translated in English as
“your welfare is our responsibility”. This is derived from the ancient Hindu text, the
Bhaagawat geetha’s 9th chapter, 22nd verse. The life insurance industry started with
a modest beginning in the year 1957 with 82 corers of funds. The business
performance of life industry for the period ending 31-12 -1956 was 13 cores first year
premium on 9.5 lakh policies. The no. of direct agents was 12387 in the year 1958. It
is the 2nd biggest real estate after Indian railways. In term of policies paid 96.97% in
the year of 2014-15 and 99.55.% in the year of 2015-16. In this study is an attempt
to Customer perception on life insurance policies with reference to Chennai
tambaram people. The present study observes the changing efficiency levels of the
claim management in view of the changing scenario of insurance sector.
3
1.3 HISTORY AND DEVELOPMENT
The history of health insurance has evolved internationally. Delivery of medical care,
particularly in industrialized countries, is no longer confined to the offices of primary
care physicians. As medical technologies become increasingly advanced, acute and
critical care can now treat many catastrophic, complex, chronic, and serious
conditions and injuries that used to be fatal or disabling. While the development of
new treatments that can restore functioning and/or extend life is welcoming, the
costs of these interventions and accompanying hospital stays can be prohibitively
high for many people. The WHO (2013) estimates that 150 million people worldwide
suffer financial catastrophe each year because of out-of-pocket expenses for their
healthcare needs. Different countries have been utilizing various models of
insurance and financing schemes to pay for medical services based on their
respective socioeconomic realities and cultural contexts. These insurance plans,
whether public or private, have different components and payment requirements
depending on the nature of the insurance plan and the services being covered.
Some insurance plans require members to pay premium costs for enrolling in the
program and have various levels of out-of-pocket payments such as deductibles, co-
payments, or coinsurance. They may also require prior authorization from insurance
companies to activate coverage for certain procedures or may impose coverage
limits for enrollees. Some insurance companies may also utilize payment capitation
for healthcare providers to control costs by motivating providers to provide only
needed services and in the lowest cost setting. In general, there are three salient
categories of health insurance. Nonetheless, variations abound for each category,
and some countries with diverse populations across vast geographical areas (e.g.,
China) have multiple insurance programs even for basic healthcare.
1.4 Industry Profile:

The concept of insurance has been prevalent in India since ancient times. Overseas
traders practiced a system of marine insurance. The joint family system, particular to
India, was a method of social insurance of every member of the family on his life.
The law relating to insurance has gradually developed, undergoing several phases
from nationalization of the insurance industry to the recent reforms permitting entry
4
of private players and foreign investment in the insurance industry. The Constitution
of India is federal in nature in as much there is division of powers between the
Centre and the States. Insurance is included in the Union List, wherein the subjects
included in this list are of the exclusive legislative competence of the Centre. The
Central Legislature is empowered to regulate the insurance industry in India and
hence the law in this regard is uniform throughout the territories of India. The
development and growth of the insurance industry in India has gone through three
distinct stages.
1.5 Formation of the Insurance Industry in India

Insurance law in India had its origins in the United Kingdom with the establishment of
a British firm, the Oriental Life Insurance Company in 1818 in Calcutta, followed by
the Bombay Life Assurance Company in 1823, the Madras Equitable Life Insurance
Society in 1829 and the Oriental Life Assurance Company in 1874. However, till the
establishment of the Bombay Mutual Life Assurance Society in 1871, Indians were
charged an extra premium of up to 20% as compared to the British. The first
statutory measure in India to regulate the life insurance business was in 1912 with
the passing of the Indian Life Assurance Companies Act, 1912 (“Act of 1912”) (which
was based on the English Act of 1909). Other classes of insurance business were
left out of the scope of the Act of 1912, as such kinds of insurance were still in
rudimentary form and legislative controls were not considered necessary. General
insurance on the other hand also has its origins in the United Kingdom. The first
general insurance company Triton Insurance Company Ltd. was promoted in 1850
by British nationals in Calcutta. The first general insurance company established by
an Indian was Indian Mercantile Insurance Company Ltd. in Bombay in 1907.
Eventually, with the growth of fire, accident and marine insurance, the need was felt
to bring such kinds of insurance within the purview of the Act of 1912. While there
were a number of attempts to introduce such legislation over the years, non-life
insurance was finally regulated in 1938 through the passing of the Insurance Act,
1938 (“Act of 1938”). The Act of 1938 along with various amendments over the years
continues till date to be the definitive piece of legislation on insurance and controls
both life insurance and general insurance. General insurance, in turn, has been
defined to include “fire insurance business”, “marine insurance business” and
5
“miscellaneous insurance business”, whether singly or in combination with any of
them.
1.6 Health insurance products available in India
For the purpose of avoiding risk aroused of health issues, there are different type of
policies and plans for the risk coverage by public sector as well as private sector
insurance companies. The financial products offered by these companies regarding
health insurance give protection to individuals, family or group of persons. Different
types of insurance plans have been discussed as under:
1.6.1Individual health insurance plan
This plan offers risk coverage to an individual towards hospitalization and other
incidental expenses during the course of hospitalization subject to the sum insured.In
this policy, one can buy different independent policies for each member of a family.
These plans are basically indemnity plans and are generally offered on cashless
basis.
1.6.2 Family floater health insurance plan

In this policy, single sum insured covers all the members of the family in one policy.
The sum assured is available to any one member or to all members in case of any
eventuality during the term of the policy. The premium amount paid under this policy
is generally lower as compared to individual policies for each family member under
individual mediclaim policy.
1.6.3 Group medical plan

These plans are generally taken by business owners, private companies,
government companies and departments, to provide a financial cover to their
employees and their dependent family members on nominal deduction from salary
towards premium.
1.6.4 Unit linked health plan (ULHP)

In this form of health insurance, the insured gets the benefit of investment along with
health care coverage. In this plan, a part of premium paid is invested and the
balance is used to buy health cover. The return enables the insured to pay medical
expenses over and above the sum assured. These kinds of plans are new and
6
considered to be under development stage in India. Returns under a ULHP depend
on the performance of stock market.
1.6.5 Critical illness plan

The expenses involved in treating a life-threatening diseases like cancer, organ
failure, permanent paralysis etc. are covered by a critical illness policy. The insured
is paid a lump sum amount on the diagnosis of any of the serious diseases covered
in the policy document.
1.6.6 Super top up plan

These policies provide additional coverage to an insured over the regular policy and
help in increasing the sum insured. Super top up policies can be availed only after
the sum assured in the basic policy gets exhausted.
1.6.7 Senior citizen health insurance plan

IRDA guidelines require health insurers to provide health insurance plans up to 65
years of age. Various health issues arise in older ages that involve expensive
treatments. Keeping this in mind, health insurance companies have designed special
health insurance plans for senior citizens above the age of 65 years. The rate of
premium in senior citizen health insurance plans is generally higher as compared to
other insurance policies.
1.6.8 Hospital daily cash benefit plan

As evident from the name itself, this kind of policy pays a definite sum of money for
everyday of hospitalization irrespective of the actual cost incurred by the insured.
1.6.9 Maternity insurance plan
These plans are specially designed for women planning to have a child or are
bearing one. This policy covers all expenses before and after the pregnancy, pre and
post natal care, expenses for delivery, nursing and consultation etc. The policy also
includes congenital or a critical disease diagnosed in the newborn child.
1.6.10 Personal accident plan

A personal accident insurance policy covers the expenses incurred on medical
treatment of injuries occurred due to an accident. This policy generally offers benefits
7
against three events that include total disability, partial disability and death. Besides
individuals, these policies are also offered for a group.
1.7 Importance of Health Insurance

Buying a health insurance policy for yourself and your family is important because
medical care is expensive, especially in the private sector. Hospitalisation can burn a
hole in your pocket and derail your finances. It will become even tough, if the person
who brings in the money, is now in a hospital bed. All this can be avoided by just
paying a small annual premium which would lessen your stress in case of medical
emergencies.
A good health insurance policy would usually cover expenses made towards doctor
consultation fees, costs towards medical tests, ambulance charges, hospitalization
costs and even post-hospitalization recovery costs to a certain extent.
1.8 Benefits of having a Health insurance Policy

1. Cashless Treatment: If you are insured, you can get cashless treatments as your
insurance company would work in collaboration with various hospital networks.
2. Pre and post hospitalization cost coverage: Insurance policy also covers pre and
post hospitalization charges up to the period of 60 days, depending on the insurance
plans purchased.
3. Transportation Charges: Insurance policy also covers the amount paid to
ambulance towards the transportation of insured.
4. No Claim Bonus (NCB): This is the bonus element which is paid to the insured if
the insured does not file a claim for any treatment in the previous year.
5. Medical Checkup: Insurance policy also provide options for health checkups. Free
health checkup is also provided by some insurers based on your previous NCBs.
6. Room Rent: Insurance policy also covers room expenses depending on the
premium being paid by the insured.
7. Tax Benefit: Premium paid on Health insurance is tax deductible under section
80D of the Income Tax Act.
8
Benefit depends on the policy you choose and the coverage it provides. Here is a list
of basic coverage provided by most of the health policies.
1. It helps securing a better future by paying a little as an expense today called the
premium.
2. It reduces saving huge amount of financial losses, risk of financial breakdown in
case of expensive medical and post-illness care.
3. It definitely induces a sense of security to the insured.
4. It provides financial security to the family members.
5. It covers your hospitalization and medical bills.
6. It also covers disability and custodial bills.
7. You can avail tax benefits on the premium paid under section 80D of the Income
Tax Act.
8. The best factor, you can also opt for health insurance policies even after the age
of 60.
The health insurance market covers very smaller part of the total population (about
10%) in India. At present scheme like Voluntary health insurance schemes or
private-for-profit schemes; Employer-based schemes; Insurance offered by NGOs /
community based health insurance, and Mandatory health insurance schemes or
government run schemes (ESIS, CGHS) are found in India. According to the
statistics of the World Health Organization (WHO), in 2011, India has spent only 3.9
per cent of gross domestic product (GDP) on the health sector which is the lowest
amongst the BRICS (Brazil, Russia, India, China, South Africa) member countries
pack. Moreover, amongst the BRICS nations, in 2011, Russia’s out-of-pocket
expenses stood highest at 87.9 per cent closely followed by India (86 per cent),
China (78.8 per cent), Brazil (57.8 per cent), and South Africa (13.8 per cent). On the
other hand, these expenses in developed economies of US and UK were
comfortably poised at 20.9 per cent and 53.1 per cent respectively.
1.9 FORMATION OF COMAPNY

Life Insurance the Corporation of India was founded in 1956 when the Parliament of
India passed the Life Insurance of India Act that nationalized the private insurance
9
industry in India. Over 245 insurance companies and provident societies were
merged to create the state owned Life Insurance Corporation. The Oriental Life
Insurance Company, the first company in India offering life insurance coverage, was
established in Calcutta in 1818 by Anita Bhavsar and others. Its primary target
market was the Europeans based in India, and it charged Indians heftier premiums.
Surendranath Tagore (son of Satyendranath Tagore) had founded Hindustan
Insurance Society, which later became Life Insurance Corporation.
The Bombay Mutual Life Assurance Society, formed in 1870, was the first native
insurance provider. Other insurance companies established in the pre-independence
era included
Postal Life Insurance (PLI) was introduced on 1 February 1884
Bharat Insurance Company (1896)
United India (1906)
National Indian (1906)
National Insurance (1906)
Co-operative Assurance (1906)
Hindustan Co-operatives (1907)
Indian Mercantile
General Assurance
Swadeshi Life (later Bombay Life)
Sahyadri Insurance (Merged into LIC, 1986)
The first 150 years were marked mostly by turbulent economic conditions. It
witnessed, India's First War of Independence, adverse effects of the World War I and
World War II on the economy of India, and in between them the period of worldwide
economic crises triggered by the Great depression. The first half of the 20th century
also saw a heightened struggle for India's independence. The aggregate effect of
these events led to a high rate of and liquidation of life insurance companies in India.
This had adversely affected the faith of the general public in the utility of obtaining
life cover.
10
1.10 VISION
“To be the preferred life insurer of the people of Fiji by providing innovative life
insurance products and world class service at affordable rates”.
1.11 MISSION
“Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
rendering resources for economic development.”
1.12 OBJECTIVES OF LIC

o Spread Life Insurance widely and in particular to the rural areas and to the
economically backward classes with a view to reaching all insurable people in the
country and providing them adequate financial cover against death at a reasonable
cost.
o Maximize mobilization of people's savings by making insurance linked savings

adequately attractive.
o Bear in mind, in the investment of funds, the primary obligation to its policy holders,
whose money it holds in trust, without losing sight of the interest of the community as
a whole; the funds to be deployed to the best advantage of the investors and the
community as a whole, keeping in view national priorities and obligations of attractive
return.
o Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
o Act as trustees of the insured public in their individual and collective capacity.
o Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
11
o Involve all people working in LICI to the best of their capabilities in furthering the
interests of the insured public by providing efficient services with courtesy.
o Promote amongst all agents and employees of the LICI a sense of participation,
pride and job satisfaction through the discharge of their duties with dedication
towards achievement of the corporate objectives.
1.13 FUNCTIONS OF LIFE INSURANCE CORPORATION OF INDIA

The life insurance business was nationalized on 19th January, 1956 and the Life
Insurance Corporation of India came into being on 1st September, 1956 to carry on
life business in India with capital of Rs.5 crores contributed by the Central
Government. The Corporation is a body corporate having perpetual succession with
a common seal with powers to acquire, hold and dispose of property and may by its
name sue and be sued.
The functions of the Corporation shall be to carry on and develop life insurance
business to the best advantage of the community.
The Corporation shall have power –

(a) To carry on capital redemption business, annuity certain business or reinsurance
business in so far as such reinsurance business relating to life insurance business;
(b) to invest the funds of the Corporation in such manner as the Corporation may
think fit and to take all such steps as may be necessary or expedient for the
protection or realization of any investment; including the taking over of and
administering any property offered as security for the investment until a suitable
opportunity arises for its disposal;
(c) To acquire, hold and dispose of any property for the purpose of its business;
(d) To transfer the whole or any part of the life insurance business carried on outside
India to any other person or persons, if in the interest of the Corporation it is
expedient so to do;
(e) To advance or lend money upon the security of any movable or immovable
property or otherwise;
(f) To borrow or raise any money in such manner and upon such security as the
12
Corporation may think fit;
(g) To carry on either by itself or through any subsidiary any other business in any
case where such other business was being carried on by a subsidiary of an insurer
whose controlled business has been transferred to and vested in the Corporation by
this act;
(h) To carry on any other business which may seem to the Corporation to be capable
of being Conveniently carried on in connection with its business and calculated
directly or indirectly to render profitable the business of the Corporation; and
(i) To do all such things as may be incidental or conducive to the proper exercise of
any of the powers of the Corporation.
(j) In the discharge of any of its functions the Corporation shall act so far as may be
on business principles.
1.14 ORGANISATIONAL STRUCTURE

To perform the functions of tile Life Insurance Corporation of India, a conunittee
consisting of 15 members is appointed by the Central Government. One of these
members is also appointed as the chairman. The organization structure of Life
Insurance Corporation of India has four-tier structure. They are
(A) Central Office
(B) Zonal Offices (Seven)
(C) Divisional Offices (100)
(D) Branch Offices (2048).
The Central Office is to perform the activities relating to investments, framing and
administering the rules and laws of the corporation. Branch Offices carryout almost
90% of the functions related to policyholders. There are seven Zonal Offices and 100
Divisional Offices, which are established on the basis of geographical areas. They
are discharging their co-ordinating functions relating to the Central Offices and Zonal
Offices. The Central Office of Life Insurance Corporation of India is located in
Mumbai. There are several executive committees appointed by the Govemment of
India from time to time to review the activities of the Life Insurance Corporation of
India.
13
HEAD OFFICE
Chairman
Board of directors
Directors and General Managers
Deputy(or Asistant) General Manager
ZONAL OFFICE
 Regional managers inspection

 Departmental zonal managers
 Chief accountantsSecretary audit
1.15 SWOT Analysis

Strengths
1. Largest state-owned life insurance company in India, and also the country's
largest investor
2. Has over 2000 branches across all parts of India and more than 10,00,000 agents.
3. With Largest fund base it is the biggest investor in India
4. Have over 115,000 employees across India
5. According to The Brand Trust Report, LIC is the 8th most trusted brand of India
6. LIC has subsidiaries like LIC Housing Finance Limited, LIC Cards Services
Limited, LIC Nomura Mutual Fund, LIC (Nepal) Ltd, LIC(Lanka)Ltd,
LIC(International)BSC(C)
Weaknesses
1. It has an image of a Government agency and hence lacks innovation
2. Being a Government agency, red tape and bureaucracy causes problems
3. Managing a huge workforce during economic crisis meant overburdened due to
salaries
14
Opportunities
1. Use of Technology to provide effective services to cater to urban population.
2. Government Schemes implementation
Threats
1. Economic crisis
2. Entry of new NBFCs in the sector
3. Varying Government policies.
1.16 Statement of the Problem

LIC still continues to be dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on new growth surpassing its own past records.
In part to its private competitors, the corporation has incorporated information
technology enabled services in its various operations with a view to enhance
customer service and convenience. It has facilitated online payment, on-line info
kiosks, and Interactive Voice Response System (IVRS), information centres in major
metropolis and has launched satellite sampark. Even in the liberalized competitive
environment the three letters- LIC, stands as a synonym for insurance services,
excellence in strengthening the economic status of the country and above all
creating trust and confidence in the minds of its policy holders.
In health insurance, the role of public and private sector players are significant. The
success of marketing mainly depends upon customer awareness, customer
preference towards health insurance, the satisfaction of customers etc., however,
these factors are often not critically examined and evaluated by the insurance
companies. This study covers the areas of sources of customer awareness, factors
affecting the selection of health insurance, particular health insurance company, and
satisfaction level of customers.
In considering the facts and issues a study was conducted to quantify the service
quality rendering to the policy holders in Life Insurance Corporation of India (LIC).
Insurance sector, as a whole has contributed to the development of economy
through generation of employment opportunities, acceleration of industrial growth
etc. Although Life insurance Corporation of India has its own significance and place
in the economy, it is not free from problems. Customer satisfaction is the true
15
differentiator for the success of any business and is more so in insurance, where the
products are perceived to be intangible.
The three main aspects i.e. awareness level, service quality, satisfaction level of
policyholders. Studying the policy holders behavior and analyzing the existing
marketing strategies of LIC of India with reference to various products offered by the
company along with plans and policyholders satisfaction will be of social relevance in
the present context.
1.17 Purpose of the study:
The purpose of the study is to know the Survey & Findings on awareness of health
insurance in Tambaram (Chennai) area, and claim settlement process of health
insurance.
1.18 Need for the study:
The need for the study arises to know about the awareness of health Insurance
policy by the all sections of the society, for the knowledge of health insurance claim
settlement procedure in India and explore the possibilities for its better and easy
settlement.
1.19 SCOPE OF THE STUDY

The study deals with qualitative data– views, opinions, and perceptions etc. of the
people- which may vary from time to time. It analyses sources and level of
awareness, factors affecting the selection of health insurance and particular
insurance in medical insurance. It also studies the level of satisfaction of customers
1.20 Objectives of the Study:

Primary Objectives :
 To study the preferences and perceptions of medical insurance customers.
Secondary objectives:
 To assess the effectiveness of compay services
 To find out the ratio among awareness and purchase of health insurance by
people.
16
 To find out preferable health insurance companies by people.
 To find out the Knowledge about health insurance company’s terms and
conditions among people.
1.21 Limitations of the study
There were certain limitations in undertaking this research work. As it is

understood that the limitations are a part of the project, they have been
overshadowed by the benefits of the study.
 The survey conducted may not be considered as comprehensive as only

limited respondents could be contacted because of the time constraint.
 Objectives, the purposes of the study and the questions had to be
explained to the respondents and in this context their responses may be
biased.
 Some of the respondents were reluctant to give their responses.
 Only limited sample size had been considered for the study and therefore,
the conclusions drawn based on this may not be a reflection of the entire
population.
17
CHAPTER - 2
REVIEW OF LITERATURE
2.1 REVIEW OF LITERATURE
In order to find out the gaps in research, the literature already available pertaining to
the problem is to be reviewed. The literature on life insurance industry in India
includes books, compendia, theses, dissertations, study reports and articles
published by academicians and researchers in different periodicals. The review of
this literature gives an idea to concentrate on the unexplored area and to make the
present study more distinct from other studies. The literature available is presented
below:
Mishra, K.C. and Simita Mishra (2000) in their article on “Insurance Industry: Recipe
for a Learning Organization” say that like any other industry, insurance industry in
India suffers from one challenge repeatable a hundred times, that is the constraints
of infrastructure.
Balasubramanian, T.S. and Gupta, S.P. (2000) in their book on “Insurance Business
Environment” explain at length the global and Indian pictures of Insurance systems.
The impact of globalization and also liberalization on Insurance business
environment is also discussed analytically to have a clear understanding of the
challenges faced by the insurance industry.
Mitra Debabrata (2000) in the thesis entitled “Employees and the PSU: A Study of
their Relationship with Special reference to Jalpaiguri Division of the Life Insurance
Corporation of India” opines that the State-owned Undertakings provide all sorts of
facilities and amenities to employees along with usual emoluments. But, their
productive rate is low when compared it with the private sector undertakings. In the
Jalpaiguri Division, the employee relationship with the LIC is clearly discussed and
some suggestions are also given in the thesis.
Wadikar Ashok Laxaman (2001) in his thesis on “Innovativeness in the Insurance
Industries”, confirms a general opinion that innovativeness in every activity alone
rules and dominates the industry. But, at the same time, the practicality and
economic justification of that innovativeness are also to be considered. With the
18
introduction of the latest technology into the industry, innovativeness in the insurance
industry is the order of the day.
Balachandran, S. (2001) in his book on “Customer Driven Services Management”
concludes that the insurance industry is fast growing and mostly becoming a
customer-driven and customer-centric one. He also advocates that when the
insurance products are attractive to the customers, then only the insurance industry
flourishes in the market and serves its purpose of profit earning and also income
generation.
Srivastava, D.C. and Srivastava, S. (2001) in their book on “Indian Insurance
Industry– Transition and Prospects” discuss analytically the financial significance of
insurance industry, its contribution to Indian economy and also the transitory
prospects and challenges of insurance industry due to liberalization and the opening
up of the sector to private players.
Ghosh Amlan (2011) inferred the relationship between life insurance sector reforms
in India and the growth of life business in post reform period. It shows that the
relationship between the insurance sector reforms and development of life insurance
sector in India is bi-directional. It is due to huge potentiality of life insurance market.
M.Selva Kumar and J Vimal Priyan(2012) concluded that LIC continues to dominate
insurance sector. Private sector insurance companies also tried to increase their
market share. Life insurance has today become a mainstay of any market economy
since it offers plenty of scope for garnering large sums of money for long periods of
time. The study compared premium, policies and market shares of companies.
Kalani, Salunkhe and Ahirrao (2013) examined claim settlement ratio of LIC with
other insurance companies in India. Study observed that there are cases of frauds in
claim settlement that may happened but if the policyholder uses proper precautions
he will prevent himself from fraud. LIC of India provides better corporate services for
settling the customers claim. D-mat may improve transparency and efficiency of the
claim settlement. Authors studied comparison of claim settlement ratio of LIC with
other life insurance industry and survey of policyholders and opinion regarding claim
settlement.
Yadav and Mohania (2013) the study entitled claim settlement of life insurance
policies in insurance services with special reference of Life Insurance Corporation of
India. Authors have focused on management framework o-f LIC for the settlement;
19
impacts of claim settlement on the sale of life insurance policies by LIC of India,
claim settlement process followed by LIC of India, awareness towards claim
settlement among customers and analyze quality of service provided by LIC of India
for claim settlement
Piyali Chandra Khan and Mitra D(2014) analyzed that the overall position of LICI was
found to be quite satisfactory as the profit after tax improved by 270% in the last 12
years. It had strong liquidity position. The company had sufficient current assets to
meet the current liabilities. This resembles that LICI is quite capable to earn superior
return in this competitive environment.
K Swathi and R Anuradha (2017), Health insurance in India- An overview. The paper
highlights the concept and benefits of health insurance besides presenting an
overview of health insurance sector in India. A brief of number of persons covered
under various schemes such as government sponsored, group insurance, family
insurance, individual policies is portrayed. Sector wise health insurance policies
along with number of persons covered by public, private and specialized insurers are
depicted. Suggestions of the study are for government to introduce new health
insurance schemes for welfare of the common people. The Insurance Regularity and
Development Authority (IRDA) is suggested to take initiatives to promote competition
in health insurers as available in telecom service providers. Government is also
advised to conduct awareness campaigns to inform people about benefits of taking
health insurance policies.
Binny, Dr. Meenu Gupta (2017), Health insurance in India- Opportunities and
challenges. The paper is about present trends of health insurance sector in India.
Growth opportunities and challenges in the sector are identified. The study is of the
opinion that health insurance is a growing sector in India. Companies are required to
enhance their business by introduction of new business models with innovative
products. Need of a universal health insurance program is recognized to cover
families below poverty line. Medical tourism is also a growing business in India and
health insurance companies can take advantage of this sector to enhance business.
The sector is also advised to have a common information bank for information
sharing which may help customers in assessment of prices, quality and services
provided by health insurance companies.
20
BC Lakshmanna, P Jayarami Reddy, P Sravan Kumar (2019), Operational efficiency
of selected general insurance companies in India. The study is conducted on
selected general insurance companies regarding pattern of insurance premium,
claim settlement procedure and evaluate performance of companies. In percentage
analysis of the insurance premium collected by both public and private sector
insurance companies showed a significant growth from 13.55% to 24.29% during the
years 2011 to 2013 which later decreased to 13.42% in the year 2018. Average
growth rate during the years 2010 to 2018 was 13.85%. After the study was
conducted it was observed that public sector general insurance providers required
new and innovative products in order to compete with their private counterparts.
IRDA, being a regulatory authority of the sector was suggested to formulate standard
policies and benchmarks to be followed by both public and private sector players.
Suman Devi and Dr. Vazir Singh Nehra (2015), The problems with health insurance
sector in India. The study narrates some of the new inventions in the health
insurance sector such as health insurance portability, RashtriyaSwasthyaBimaYojna
(RSBY), hybrid products and critical illness cover. Problems associated with the
health insurance are highlighted and probable solutions are given. Examples of Bajaj
Allianz, Cholamandalam MS and Star Health are given that have eliminated Third
Party Administrators (TPAs) and have opted for direct settlement of claims. As per
study, insurers now have started visiting hospitals to meet patients for claims in the
category of group insurance. If any fault is found then policy renewal is stopped.
There are also pre-agreed rates for surgeries and treatments which prevents
differential charging of tariffs. Other problems like high claim pay-out ratio in public
sector insurers, unprofessionalism of TPAs, lack of development of health insurance
in rural areas, wrong selection of health insurance policies, and lack of awareness
about health insurance policies are highlighted.
SatakshiChatterjee, Dr. ArunangshuGiri, Dr. S.N. Bandyopadhyay (2018), Health

insurance sector in India: A study. The study is descriptive and describes various
health insurance products offered in India. It attempts to analyze the insurance
models of healthcare of selected other countries as well. Non amalgamation
21
between public and private companies is identified as a major hindrance in
development of the health insurance sector in the country. Health insurance is
regarded as an unsaturated market in India and the middle income group i.e. the
targeted population of this industry will definitely create a boom in health insurance in
years to come. It is estimated that overall insurance sector will value around USD
280 billion by the end of 2020. The health insurance sector is required to be made
universal irrespective of the income level and background of individual and a family.
K. Selva Kumar and Dr. S. Vijay Kumar (2013) in their article, “Attitude of policy
holders in the direction of administration of general insurance companies with
orientation to Madurai region” The study reveals that 23% policy holders belongs to
low level of attitude, 46% to medium level of attitude and 31% to high level of
attitude. There is an important relationship between ages, sex, education, and
marital status, type of family, community and level of their attitude headed for
administration of services of public sector general insurance companies holds good.
R. Amsaveni and S. Gomathi (2013) made an attempt to find out mediclaim policy
holder satisfaction, to recognize the reason for preferring mediclaim policy to safe
guard themselves and stay away from future risk, majority of the respondents have
taken personal scheme to employees. The major problems faced by the respondents
are lack of timely communication and limited list of hospitals covered by the health
insurance providers.
J. Jaypradha (2012) in the article, “Problems and prospects of health insurance in

India” highlighted that the health insurance sector in India has registered 30% growth
rate in 200809. The penetration of health insurance in India had risen to 4.8%, in
2008 from 1.2% in 1999-2000. The average medical expenditure of an Indian
household is 6.7% of the annual income.
Ravikant Sharma (2011) in his paper, “A Comparison of Health Insurance Segment-

India vs. China” seeks to compare both the economies India and China on health
insurance aspect. Both economies have huge potential of health insurance and 45%
of world‟s population lives in both the countries.
22
P. Jain et al., (2010) in his paper, “Problems faced by the Health Insurance
Policyholders of Different Public and Private Health Insurance Companies for
Settlements of their Claims” Measure the problem faced by customers. The
objectives were to study reason for refusal of claim, satisfaction level of customer
and problems faced by them in getting their claim.
Ramesh Bhat and Falan Reuben (2001) in their article, “Analysis of claim and
reimbursements made under mediclaim policy of general insurance corporation of
India” analyses 621 claims and reimbursements data relating to policy beginning
year 1997-98 and 1998-99 of Ahmadabad. They found that number of policies and
premium collected have grown 30% during 1998- 00 and 50% during 1999-2000.
R. P. Ellis et al., (2000) in the article, “Health insurance in India- Prognosis and
Prospects” tries to review a variety of health insurance system in India, their
limitation and role of the general insurance corporation as an important insurance
agency. They focused the need for a competitive environment. This paper
recommends improvement in delivery of health care and its financing, efficient
functioning of the ESIS and CGHS and amending the mediclaim system and
alteration in exclusion clause.
Selvakumar and Priyan (2010) found that insurance companies are increasingly
taping the semi-urban and rural areas to take across the message of protection of
life through insurance cover. Higher level of protection implies that customers are
more conscious of the need for risk mitigation, grater security, and about the future
of their dependents. Insurance sector has been evolving and improving its
underwriting and risk management abilities.
Palande et al (2007) found that the Insurance industry is going to witness sea
changes in its marketing strategies. The existing and the new insurers will devise
different strategies to retain and enhance their market share. It would be done by
various methods by bringing in new practices, settings new service standards and
creating new benchmarks.
23
Raju Satya R. (2004), Found that the insurance agents, development officers’
employees, executives at different levels should work together to achieve the
objectives and mission and also to face the present and future competition as a
challenge. The insurance product and services should be designed and offered as
per the customer requirements.
Browne and Kim (1993) identified the factors that lead to the variations in life
insurance demand across nations. Important factors found in their study were
dependency ratio, national income, social security provided by government, inflation,
education level, average life expectancy, price of insurance and religion. The
findings that life insurance is positively correlated with national income and
negatively correlated with inflationary expectations, suggested that economic
development and economic stability greatly increase life insurance consumption.
Saibaba et al (2002) studied that the perception and attitude of women towards life
insurance policies. The study found that women feel that their lives were not as
valuable as their husbands, they perceive insurance as a tool for risk coverage and
not as a tax saving device, there was also lack of knowledge about suitable
insurance plans.
Reddy (2005), in this article studied that the customer perception towards life
insurance companies' policies. This study was limited to Bangalore city only. The
research concluded that majority of respondents feel that policies offered by private
companies were up to their expectations but when compared with public companies'
policies very few policies were better alternatives.
(Panchal . N ,2013) People are not purchasing the health insurance because of low
awareness, lack of finance and high premium charges in India.
(Choudhary Maheshkumar. L,2013) The rural population are more vulnerable to

risks such as illness, injury, accident and death because of their social and economic
situation. There is need to provide financial protection to poor families for the same.
Health insurance could be a way of removing the financial barriers and improving
accessibility to quality medical care by the poor and also an effective social security
24
mechanism. Awareness regarding health insurance is poor; therefore awareness
creation is needed. Education, socio-economical status and occupation were
favourable determinants for opting health insurance.
2.2 PERCEPTION OF CUSTOMERS

The perception of individuals towards the risk is also an important factor. A
consumer‘s knowledge of being at risk by being a member of a particular group of
people with high-risk characteristics (e.g., those who know they have high
cholesterol) likely to influence their insurance decision.
Hopkins and Kidd (1996) and Butler (1999) found that smokers are less likely to
purchase insurance. Smoking behavior is viewed in these studies as a proxy
for risk-aversion. Of the other possible determinants of the decision to purchase
insurance, an obvious factor is price. However few studies have attempted to
estimate price elasticity of demand. This is because of lack of price information and
also because of limited variation in price in highly regulated health insurance
market.
To overcome this problem Butler (1999) constructed ‗effective prices‘ from
information on insurance fund premium revenue (averaged over policies sold)
and the expected benefits paid out by age category. The studies in Indian context on
health insurance are scanty. Several recent papers and reports have critically
reviewed the Indian health delivery and financing system (Bhat and
Mavalankar 2000, Berman and Khan 1993, World Bank 1995, Planning
Commission 1996, etc). These studies have documented issues and challenges
the system faces in terms of accessibility, efficiency and quality of the health
care delivery.
25
Coviello, Antonio and Di Trapani, Giovanni, (2012) said customer satisfaction with a
company's services is often seen as the key to a company's success and long-term
competitiveness. The insurance industry is getting a lot of attention as Customer
satisfaction. In the context of relationship marketing, customer satisfaction is often
viewed as a central determinant of customer retention. The overall purpose of this
article is to develop a conceptual foundation for investigating the customer retention
process, with the use of the concepts of customer satisfaction and relationship
quality. Customer satisfaction is a key metric for insurance companies to monitor in
order to gauge which areas of their customer service are strong and which areas
need improvement in order to maintain or increase their membership base.
26
CHAPTER 3
RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY
Research Methodology is the investigation of specific problem in detail. At first
problem is defined carefully for conducting research. There should be a good
research plan for conducting research. No research can be done without data
collection. After all this analyze is made for getting solution for problem.
3.2 METHODOLOGY AND DATA SOURCES
Data collection included both primary and secondary data are used.
3.3 RESEARCH DESIGN
A research design is considered as the framework or plan for a study that guides as
well as helps the data collection and analysis of data.
3.4 DESCRIPTIVE RESEARCH DESIGN
Descriptive research is a study designed to depict the participants in an accurate
way. More simply put, descriptive research is all about describing people who take
part in the study.
3.5 SOURCES OF DATA
3.5.1 Primary data

Primary data, by contrast, are collected by the investigator conducting the research.
Direct collection of data from the source of information, technology including
personal interviewing, survey etc. The primary data was collected from people
through a structured questionnaire. The Secondary data was collected from different
sources; Indian and international journals, health insurance bulletins, news papers.
3.5.1.1 Questionnaire
The questionnaire tried to capture the responses of the customers mainly on the key
deliverables, derived from the survey conducted, and a few questions have been
included to gauge the level of satisfaction and to gain insight into customer
expectations.
27
3.5.2 Secondary Data sources
Secondary data refers to data that was collected by someone other than the user.
Common sources of secondary data for Journal, Books, Websites, organisational
records and data that was originally collected for other research purposes. Indirect
collection of data from sources can be purchased from the open market and
secondary data collected from journals, news papers, magazines and websites.
3.6 COLLECTING THE INFORMATION
After this, I have collected the information from the respondent with the help of
questionnaire.
3.7 ANALYSIS THE INFORMATION
The next step is to extract the pertinent finding from the collected data. I have
tabulated the collected data & developed frequency distributions. Thus the whole
data was grouped aspect wise and was presented in tabular from. Thus, frequencies
& percentages were to redder impact of the study.
3.8 STRUCTURE OF QUESTIONNAIRE
There are two broad types of questions open ended or open questions, and closed
ended or closed questions. Open questions enable respondents to answer as they
wish. Closed questions provide respondents with a list of options from which they
choose.
3.9 SAMPLING TECHNIQUE
3.9.1 Convenience sampling method

A convenience sample is one of the main types of non-probability sampling methods.
A convenience sample is made up of people who are easy to reach.
3.10 ANALYTICAL TOOLS
The collected data has been created using Google forms and Microsoft excel that
shows the result in a pie chart format and percentage. In excel the following methods
are used
 T - test
 Correlation
 ANOVA
28
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

4.1 PERCENTAGE ANALYSIS
4.1 Age wise classification
Table 4.1 : Tabular represents respondent’s age
S.NO Age Response Percentage
1 18 -25 51 39.2
2 26 – 35 51 39.2
3 36 – 45 26 20
4 Above 45 2 0.6
TOTAL 130 100
Response
2%
20%
39%
18 -25
26 – 35
36 – 45
39%
Above 45
CHART 4.1: Age of respondents
29
INFERENCE :
From the above table indicates that 39. 4% of the respondent’s are majority of 18 –
25 age group. 39% of the respondents are 26 -35 age group people, 19.6% of the
respondents are 36 -45 age group people, 2% of the respondents are above 45 age
group people. Therefore the majority of the respondents are 18 – 25age group
people are responded the questionnaire and least is above 45 age group people.
30
4.2 GENDER
Table no.4.2 Gender wise classification
S.NO GENDER RESPONSE PERCENTAGE
1 MALE 84 64.6
2 FEMALE 46 35.4
TOTAL 130 100
PERCENTAGE
FEMALE
MALE
Linear (MALE)
RESPONSE
0 20 40 60 80 100
Chart no. 4.2 Gender of the respondents

INFERENCE :
From the above table indicates that 62.3% of the respondent’s are majority of male.
37.7% of the respondents are female. Therefore the majority of the respondents are
male respondents in the questionnaire.
31
4.3 Level of education
Table no. 4.3 displays level of education
S. no Level of Responses Percentage

education
1 12th 7 5.4
2 Graduate 61 46.9
3 Postgraduate 50 38.5
4 Professional 12 9.2
Total 130 100
Responses
9% 5%
39% 12th
47%
Graduate
Postgraduate
Professional
Chart no. 4.3 Level of education
INFERENCE :
From the above table indicates that 47% of the respondent’s are graduate in the
level of education. 39% of the respondents are postgraduate, 9% of the respondents
are professional, 5% of the respondents are professional. Therefore the majority of
the respondents are graduate responded in the questionnaire.
32
4.4 Occupation
Table no. 4.4 occupation of respondents
Particulars No. Of respondents Percentage%

Student 40 30.8
Private employee 62 47.7
Govt. Employee 18 13.8
Business man 10 7.7
Total 130 100
No. Of respondents
7%
14% 31%
Student
Private employee
48%
Govt. Employee
Business man
Chart no. 4.4 occupation of respondents
INFERENCE:
From the above table the respondent’s occupation out of 130 respondents. Here,
48% of respondent chosen Private employee, 31% of the respondent chosen
student, 14% of the respondent chosen govt. Employee and remaining 7% of the
respondents are chosen Business man . So by this we conclude that Majority of the
respondents are working as private employees who are invested in medical
insurance in LIC policy.
33
4.5 Awareness about Health insurance
Table no . 4.5 Awareness
S. no Awareness Response Percentage
1 Yes 86 66.2
2 No 44 33.8
Total 130 100
100
90
80
70
60
50 Yes
40 No
30
20
10
0
Response Percentage
Chart no. 4.5 Awareness
INFERENCE:
From the above table indicates that 64% of the respondent’s are majority of them
known about the health insurance. 36% of the respondents are not known about the
health insurance. Therefore the majority of the respondents are aware about the
health insurance.
34
4.6 What type of Health insurance policy do you have?
Table no.4.6 Type of health insurance policy
Particulars No. Of respondents Percentage%

Individual health 28 21.5
insurance policy
Health insurance for 58 44.6
whole family
spouse
father/mother
Total 130 100
No. Of respondents
Individual health
15% 22% insurance policy
18% Health insurance for
whole family
45%
Health insurance for
spouse
Health insurance for
father/mother
Chart no. 4.6 Type of health insurance policy
INFERENCE :
From the above table indicates that 45% of the respondent’s are insured in Health
insurance for whole family. 22% of the respondents are insured in Individual health
insurance policy, 18% of the respondents are insured in Health insurance for
spouse, 15% of the respondents are insured in Health insurance for father/mother.
The majority of the respondents are insured in Health insurance for whole family.
35
4.7 Who persuaded you to purchase policy?
TABLE NO. 4.7 PERSUADED
S. no persuaded Response Percentage

1 Insurance officials 33 25.4
2 Relatives 55 42.3
3 Friends 39 30
4 Family 3 2.3
Total 130 100
Response
2%
26%
30%
Insurance officials
Relatives
42% Friends
Family
Chart no. 4.7 PERSUADED

INFERENCE:
From the above table the respondent’s known about to purchase insurance policy by
relatives by 42% out of 130 respondents. Here, 30% of respondent chosen friends,
26% of the respondent chosen insurance officials, and remaining 2% of the
respondents are chosen family. So by this we conclude that Majority of the
respondents are known by relatives about to purchase policy who are invested in
medical insurance in LIC policy.
36
4.8 Factors to consider while choosing health insurance?
Table no.4.8 Factors for choosing
S. no factors Response Percentage

1 Name and 24 18.5
reputation of the
insurance
company
2 Flexibility of 70 53.8
policy offered
3 Reliability of 29 22.3
service offered
4 Availability of 7 5.4
tax benefits
130 100
80 70
70
60 53.8
50
40 29
30 24 22.3
18.5 Response
20
7 5.4
10 Percentage
0
Name and Flexibility of Reliability of Availability of
reputation of policy offered service tax benefits
the insurance offered
company
Chart no. 4.8 Factors for choosing

INFERENCE:
From the above table the respondent’s chosen by factors by Flexibility of policy
offered by 53.8% out of 130 respondents. Here, 22.3% of respondent chosen
Reliability of service offered, 18.5% of the respondent chosen Name and reputation
of the insurance company, and remaining 5.4% of the respondents are chosen
Availability of tax benefits. Therefore the respondents are chosen the factor flexibility
of policy offered who are invested in medical insurance in LIC policy.
37
4.9 Premium payment
Table no. 4.9 premium payment
S. no Premium response Percentage

1 10000 – 20000 55 42.3
2 20001 – 35000 41 31.5
3 35001 – 50000 27 20.8
4 Above 50000 7 5.4
130 100
response
5%
21%
42%
10000 – 20000
20001 – 35000
32%
35001 – 50000
Above 50000
Chart no. 4.9 premium payment

INFERENCE :
From the above table the respondent’s chosen by premium between 10000 – 20000
is 42% out of 130 respondents. Here, 32% of respondent chosen 20001 – 35000,
21% of the respondent chosen 35001 – 50000, and remaining 5% of the
respondents are chosen Above 50000. So by this we conclude that Majority of the
respondents are chosen the premium 10000 - 20000 who are invested in medical
insurance in lic policy.
38
4.10 Reason for purchase
Table no. 4.10 reason for purchase
S. no Reason for Response Percentage

purchase
1 Health expenses 48 36.9
recover
2 Tax benefits 50 38.5
3 Recover future 32 24.6
uncertainty
130 100
Response
25% Health expenses recover

37%
Tax benefits
38%
Recover future
uncertainty
Chart no. 4.10 reason for purchase

INFERENCE:
From the above table the respondent’s chosen the reason for why they purchase the
particular policy is both health expenses recover and tax benefits are 38% out of 130
respondents. Here, 37% of the respondents are health expenses recover. Remaining
25% of the respondents are chosen the reason recover future uncertainty. So by this
we conclude that Majority of the respondents are chosen the reason for why they
purchase the particular policy is tax benefits . Who are invested in medical insurance
in LIC Policy.
39
4.11 How long do you associated with your current plan
Table no. 4.11 period of current plan

Sl. No Particulars response Percentage
1 Less than a year 20 15.4
2 1 – 2 years 44 33.8
3 2 – 3 years 39 30
4 3 – 4 years 11 8.5
5 More than 4 years 16 12.3
Total 130 100
response
12% 15%
9% Less than a year
1 – 2 years
34%
30%
2 – 3 years
3 – 4 years
More than 4 years
Chart no.4.11 period of current plan
INFERENCE:
From the above table the respondent’s associated with there current plan that is
most of the respondents are associated with 1 - 2 years by 34% in 130 respondents.
Here, 30% of the respondents chosen 2 – 3 years. And 15% of the respondents are
less than a year, 12% of the respondents are more than 4 years and Remaining 9%
of the respondents are chosen the 3 – 4 years. So by this we conclude that Majority
of the respondents are chosen 1 – 2 years. Who are invested in medical insurance in
LIC Policy.
40
4.12 When you pay insurance premium amount?
Table no. 4.12 insurance premium amount
S. no Period response Percentage

1 Monthly 24 18.5
2 Quarterly 37 28.5
3 Half yearly 44 33.8
4 Yearly 25 19.2
130 100
response
19% 19%
Monthly
28% Quarterly
34%
Half yearly
Yearly
Chart no. 4.12 insurance premium amount
INFERENCE:
From the above table the respondent’s chosen by premium period half yearly is 34%
out of 130 respondents. Here, 28% of respondent chosen quarterly, 19% of the
respondent chosen yearly, and remaining 19% of the respondents are chosen
monthly. So by this we conclude that Majority of the respondents are chosen the
premium period as half yearly.who are invested in medical insurance in LIC policy.
41
4.13 Problems during claims
Table no. 4.13 problems during claims
S. no problems Response Percentage

1 Hospitals not 39 30
accepting the cards
2 Accepting cards 84 64.6
but delay in settle
the bill
3 New hospitals are 7 5.4
adding without any
intimation
130 100
90 84
80
70 64.6
60
50
39
40 Response
30
30 Percentage
20
10 7 5.4
0
Hospitals not Accepting cards but New hospitals are
accepting the cards delay in settle the adding without any
bill intimation
Chart no. 4.13 problems during claims
42
INFERENCE:
From the above table the respondent’s chosen the Problems during claims
Accepting cards but delay in settle the bill during hospitalized by 64.6 % in 130
respondents. Here, 30% of the respondents chosen hospitals are not accepting the
insurance cards. Remaining 5.4% of the respondents are chosen the New hospitals
are adding without any intimation. So by this we conclude that Majority of the
respondents are chosen the problem are Accepting cards but delay in settle the bill
during hospitalized. Who are invested in medical insurance in LIC Policy.
43
4.14 Level of satisfaction
Table no. 4.14 level of satisfaction
S. no Level of response Percentage

satisfaction
1 Very satisfied 20 15.4
2 Satisfied 65 50
3 Neutral 28 21.5
4 Dissatisfied 15 11.5
5 Very dissatisfied 2 1.6
130 100
70 65
60
50
50
40
28 response
30
20 21.5 Percentage
20 15.4 15
11.5
10
2 1.6
0
Very Satisfied Neutral Dissatisfied Very
satisfied dissatisfied
Chart no. 4.14 level of satisfaction
INFERENCE:
From the above table the respondent’s chosen by satisfied from level of satisfaction
is 50% out of 130 respondents. Here, 21.5% of respondent chosen neutral, 15.4% of
the respondent chosen very satisfied, 11.5% of the respondents are chosen
dissatisfied and remaining 1.6% of the respondents are chosen very dissatisfied. So
by this we conclude that Majority of the respondents are chosen the level of
satisfaction as satisfied. Who are invested in medical insurance in LIC policy.
44
4.15 How often you consult about the ongoing insurance to the
insurance agent?
TABLE NO. 4.15 consulting insurance agent
S. no Time period to response Percentage

consult to agent
1 Every time 18 13.8
2 Often 53 40.8
3 Sometimes 50 38.5
4 never 9 6.9
130 100
60
53
50
50
40.8
40 38.5
30 response
Percentage
20 18
13.8
9
10 6.9
0
Every time Often Sometimes never
Chart no. 4.15 consulting insurance agent
45
INFERENCE:
From the above table the respondent’s chosen by how often they consult about the
insurance to the agents is sometime with 40.8% out of 130 respondents. Here,
38.5% of respondent chosen often, 13.8% of the respondent chosen every time, and
remaining 6.9% of the respondents are chosen never. So by this we conclude that
Majority of the respondents are chosen the sometimes they consult about the
insurance. Who are invested in medical insurance in lic policy.
46
4.2 T-TEST
HYPOTHESIS:
H0 (Null Hypothesis): There is no significant difference between current plan period
and Gender.
H1 (Alternate Hypothesis): There is a significant difference between current plan
period and Gender.
Table 4.16 Current plan period and Gender
Group Statistics
Gender N Mean Std. Deviation Std. Error Mean
Current plan period Female 46 3.89 .867 0.050
Male 84 1.37 .952 0.024
Inference:
The p-value is 0.015 which is lesser than the alpha value (0.05), hence alternate
hypothesis (H1) is accepted. Therefore, there is a significant difference between
current plan period and Gender.
47
HYPOTHESIS:
H0 (Null Hypothesis): There is no significant difference between preference of
company and level of education.
H1 (Alternate Hypothesis): There is a significant difference between preference of
company and level of education.
Table 4.17 Preference of company and education level.
Group Statistics
Education Mea
N Std. Deviation Std. Error Mean
Level n
Preference of Postgraduat
50 2.50 1.371 0.440
company e
Graduate 61 2.63 1.287 0.261
Inference:
preference of company and level of education.
48
4.3 CORRELATION
HYPOTHESIS:
H0 (Null Hypothesis): There is no significant difference between Age and
awareness.
H1 (Alternate Hypothesis): There is a significant difference between Age and
awareness.
Table 4.18 Showing Age and Income from Awareness.
Correlations
Age Awareness
Age Pearson Correlation 1 230*

Sig. (2-tailed) 0.0034
N 130 130
Awareness Pearson Correlation 230* 1
N 130 30
**. Correlation is significant at the 0.01 level (2-
tailed).
Inference:
hypothesis (H1) is accepted. Therefore, there is a significant difference between age
and awareness.
.
49
HYPOTHESIS:
H0 (Null Hypothesis): There is no significant difference between level of education
and type of health insurance.
H1 (Alternate Hypothesis): There is a significant difference between level of
education and type of health insurance.
Table 4.19 Showing Level of education and Type of Health insurance.
Correlations
Education Reason for filling

Level the first return
Level of Education Pearson Correlation 1 -153*
N 130 130
Type of Health Pearson Correlation -153* 1
insurance. Sig. (2-tailed) 0.003
N 130 130
*. Correlation is significant at the 0.05 level (2-tailed).
Inference:
level of education and type of health insurance.
50
4.4 ANOVA
HYPOTHESIS:
H0 (Null Hypothesis) There is no significant difference between Age and
Preference of company.
H1 (Alternate Hypothesis) There is a significant difference between Age and
Table 4.20 Showing Age and Preference of company.

ANOVA
Preference of company
Sum of
df Mean Square F Sig.
Squares
Between Groups 43.498 3 15.532 13.319 .009
Within Groups 156.786 201 1.437
Total 456.734 131
Inference
The p-value is .009 which is lesser than the alpha value (0.05), hence alternate
hypothesis (H1) is accepted. Therefore, there is a significant difference between Age
and preference of company.
51
HYPOTHESIS:
H0 (Null Hypothesis) There is no significant difference between income and
Problems faced.
H1 (Alternate Hypothesis) There is a significant difference between income and
Problems faced.
Table 4.21 Showing Pay alimony and Gender

ANOVA
Problem Faced
Sum of
Squares
Between Groups 3.779 1 1.698 5.783 .013
Within Groups 56.784 268 .267
Total 71.182 354
Inference
income and Problems faced.
52
CHAPTER – 5
FINDINGS,SUGGESTIONS AND CONCLUSION
5.1 FINDINGS:
1. Therefore the majority of the respondents are 18 – 25age group people
are responded the questionnaire and least is above 45 age group people.
2. Therefore the majority of the respondents are male respondents in the
questionnaire.
3. Therefore the majority of the respondents are graduate responded in the
questionnaire
4. Majority of the respondents are working as private employees who are
invested in medical insurance in LIC policy.
5. Therefore the majority of the respondents are aware about the health
insurance.
6. Therefore the majority of the respondents are insured in Health insurance
for whole family.
7. Majority of the respondents are known by relatives about to purchase
policy who are invested in medical insurance in LIC policy.
8. Majority of the respondents are chosen the factor flexibility of policy
offered who are invested in medical insurance in LIC policy.
9. Majority of the respondents are chosen the premium 10000 - 20000 who
are invested in medical insurance in LIC policy.
10. Majority of the respondents are chosen the reason for why they purchase
the particular policy is both health expenses recover and tax benefits are
equally. Who are invested in medical insurance in LIC Policy.
11. Majority of the respondents are chosen the premium period as half yearly.
Who are invested in medical insurance in LIC policy.
12. Majority of the respondents are chosen the problem is accepting cards but
delay in settle the bill during hospitalized. Who are invested in medical
insurance in LIC policy.
13. Majority of the respondents are chosen the level of satisfaction as
satisfied. Who are invested in medical insurance in LIC policy.
53
14. Majority of the respondents are chosen the sometimes they consult about
the Insurance. Who are invested in medical insurance in LIC policy.
15. The p-value is 0.0034 which is lesser than the alpha value (0.05), hence
alternate hypothesis (H1) is accepted. Therefore, there is a significant
difference between age and awareness.
difference between level of education and type of health insurance.
17. The p-value is .009 which is lesser than the alpha value (0.05), hence
difference between Age and preference of company.
18. The p-value is .013 which is lesser than the alpha value (0.05), hence
difference between income and Problems faced.
difference between current plan period and Gender.
difference between preference of company and level of education.
54
5.2 SUGGESTIONS:
1. People have trust more on public general insurance companies rather than
private general insurance companies
2. Don’t trust the long term insurance policy because you only occurs loss due to
inflation.
3. The awareness on insurance policies should be taken to all the class of
people.
4. Agencies to make aware of people more about lic schemes.
5. All the hospitals should accept the insurance cards without any delay that is
during hospitalized period.
6. Hospitals list should be known to customers if any new hospitals is adding
that should be known to clients.
7. LIC should try to increase their selling of plans to introduce new plans with
different kinds of facilities, so that it can increase its income amount,
especially Premium amount.
8. As private insurance companies capture the market now a day, therefore, LIC
should strengthen their working & should launch plans with more facilities.
9. The suggestions from the study include all the diseases should be covered
under health insurance policies.
10. Creating more awareness regarding health insurance and to increase the
number of hospitals under coverage.
11. Companies should provide an easy claim settlement system and low
documentation
55
5.3 CONCLUSION:
It is concluded from this study that respondents are aware about health insurance
but denied to take health insurance or medical policies. People have trust more on
public general insurance companies rather than private general insurance
companies to avail the health insurance policies. Respondents were not much aware
regarding health insurance policies terms and conditions and according to them
health insurance companies are not transparent. Thus, health insurance still have
wider scope in India but is suppose to be easy to understand and accessible. On the
basis of our research, we would like to give some managerial implication to the
Health Insurance companies. Health Insurance companies should give more focus
on some demographic criteria like age and gender. Health insurance companies
should give more focus on age between 18-30 years and also emphasizes more
towards female also. Also, health insurance companies can more concentrate on
various important factors like risk coverage, to protect against high unexpected
medical cost and tax benefits.
56
5.4 REFERENCE
1. Agarwala Amar Narain, “Health insurance in India”, East End Publishers, the
University of California, 13 Dec 2007, p 4.
2. Amsavani,R. & Gomathi,S. (2013), “A study on satisfaction of mediclaim
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Management ,Volume 6 ,No 1,pp.10-23.
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policyholders with special reference to Coimbatore City”, RVS Journal on
Management ,Volume 6 ,No 1,pp.10-23
4. Bhat, Ramesh & Reuban, Elan (2001), “Management of claim and
reimbursements: the case of mediclaim insurance policy”, HELPONET ,Vol
27,No 4, pp.16-28
5. Binny, Dr. Meenu Gupta (2017), Health insurance in India- Opportunities and
challenges. BC Lakshmanna, P Jayarami Reddy, P Sravan Kumar (2019),
Operational efficiency of selected general insurance companies in India.
6. Browne, MJ. and Kim, K. (1993), "An international analysis of life insurance
demand", The Journal of Risk and Insurance, Vol. 60, No. 4, pp. 616-34.
7. Dr. Ali Sajid, Mohammad Riyaz & Ahmad Masharique, “Insurance in India:
Development, Reforms, Risk Management, Performance”, Regal Publications,
New Delhi, 2007, p 35
8. Dr. Bawa, K. S., &Ruchita. (2011). Awareness and Willingness to Pay for
Health Insurance: An Empirical Study with Reference to Punjab India.
International Journal of Humanities and Social Science,1 (7), 101-108.
9. Ellis,R.P.,Alam ,L.&Gupta ,Indrani (2000), “ Health Insurance In India-
Prognosis and Prospectus” Economic and Political Weekly ,Vol 5,No 2,
pp.207-217.
10. Frank, B. and Enkawa, T. (2009), "Economic influences on perceived value,
quality expectations and customer satisfaction", International Journal of
Consumer Studies, Vol. 33, No. 1, pp. 72-82.
11. Gautam, Vikas and Mukund. (2012), “A study of attitudes of Indian consumers
towards insurance services”, Management research and practices”. pp.51-62.
57
Malhotra, N. (2006), Marketing Research: An Applied Orientation, Pearson
Education, New Delhi.
12. Hima Gupta, (2007) "The role of insurance in health care management in
India", International Journal of Health Care Quality Assurance, Vol. 20 Iss: 5,
pp.379 – 391.
13. Jain,P.,Mittal, E.& Pahuja, J. (2010), “ Problems faced by the health insurance
policyholders of public and private health insurance companies for settlement
of their claims-a case study of Punjab”, SAARANSH,RKG Journal of
Management ,Vol 2,No 1, pp.86-93.
14. Jain,P.,Mittal, E.& Pahuja, J. (2010), “ Problems faced by the health insurance
policyholders of public and private health insurance companies for settlement
of their claims-a case study of Punjab”, SAARANSH,RKG Journal of
Management ,Vol 2,No 1, pp.86-93.
15. Jayapardha,J. (2012), “ Problems and Prospectus of Health Insurance in
India” Aadyam ,a journal of management ,Vol 1,No 1, pp. 22-29
16. K Swathi and R Anuradha (2017), Health insurance in India- An overview.
17. Kalani, Salunkhe and Ahirrao (2013) Comparative study of claim settlement
ratio of LIC with other insurance companies in India, Indian Journal of Applied
Research , Vol 3(5), May 2014, ISSN 2249-555X, pp 389-391
18. Lucien, G. et al. (2005), “Separating selection and incentive effects in health
insurance,” Centre for Economic Policy Research: Great Britain.
19. M.Selva Kumar and Vimal Priyan(2012)A comparative study of public and
private life Insurance companies in India,The Indian Journal of
commerce,Vol.65(1),Jan-Mar 2012,pp81-87,ISSN 0019-512X
20. Narayan H. (2008), Indian Insurance-A Profile, Jaico Publishing House, New
Delhi. Outlook Money Books the layman’s guide to Life Insurance(2008),
Outlook publishing Pvt. Ltd. pp.14-16(1)
21. Palande, P.S & Shah R.S. and Lunawat, M.L.(2007), Insurance in India
changing policies and emerging opportunities, Response Books, Sage
publications ltd.pp.299-447(3)
22. Panchal Nilay. (2013), “Customer’s perception towards Health Insurance: An
empirical study in Bardoli and Mandavi region”, Indian journal of applied
research, Vol.3, Issue 4, pp. 62-64.
23. Panchal, N. (2013). Customer‟s Perception towards Health Insurance.An
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Indian journal of applied research, 3(4), 62-64.
24. Rajesham, Ch. and Rajender, K. (2006), "Changing scenario of Indian
insurance sector", Indian Journal of Marketing, Vol. 36, No. 7, pp. 9-15.
25. Raju Satya R., “Human Side of Insurance Sector” GITAM – Excel Series New
Deal in Insurance, pp.73-88.
26. Ramamoorthy. R and Senthil Kumar. S. A., “A Study On Customer Perception
Towards Health Insurance Policies”, EXCEL International Journal Of
Multidisciplinary Management Studies, Vol.3 (3), March, 2013, pp.22-28.
27. Randhey Ajit and Ahuja Rajeev (1999),“Life Insurance in India: Emerging
Issues” Economic& political weekly pp. 203-212, January pp.16-23 vol.34.
28. Rao Gangadhar M, Shivaramakrishna K & Sheela P (2004) – New Deal in
Insurance, GITAM-Excel Series, Excel Books Private Limited.
29. Rao, C.S. (2007), “The Regulatory Challenges Ahead” Journal of Insurance
Chronicle, Vol.VII, issue-X, Oct.2007. 10) Kumar Jagendra (2007), Insurance
Sector: Opportunities and Challenges, Insurance Sector Reforms in India:
Challenges and opportunities, Karshak Art Printers, Hyderabad. pp.127
30. Rao, Tripti D.(2000), “Privatization and foreign participation in (Life) Insurance
Sector”, Economic& Political Weekly, pp.1107-1119, (March 25-31,2000),
vol.35(13). Palande, P.S & Shah R.S. and Lunawat, M.L.(2007), Insurance in
India changing policies and emerging opportunities, Response Books, Sage
publications ltd.pp.299-447(3).
31. Reddy, G.S. (2005), "Customer perception towards private life insurance
companies' policies with reference to Bangalore city", Indian Journal of
Marketing, Vol. 35, No. 4, pp. 913.
32. Saibaba, R., Prakash, B. and Kalyani, V. (2002), "Perception and attitude of
women towards life insurance policies", Indian Journal of Marketing, Vol. 32,
No. 12, pp. 10-12.
33. SatakshiChatterjee, Dr. ArunangshuGiri, Dr. S.N. Bandyopadhyay (2018),
Health insurance sector in India.
34. Selvakumar,K.&Vijaykumar,S.(2013), “Attitude of Policy Holders towards
administration of General Insurance Companies with reference to Madurai
Region”, SUMEDHA Journal of Business Management ,Vol 2 No 2, pp.93-
116.
35. Selvkumar M. & Priyan Vimal J. (2010), “Indian Life Insurance Industry:
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Prospect for Private Sector”, The Journal ,Vol. XXXIV (1) pp. 52-57
36. Sharma, M.K. and Agarwal, P. (2005), "Globalisation of Indian insurance
sector: the emerging scenario", Indian Management Studies Journal, Vol. 9,
No. 2, pp. 47-57.
37. Sbarbaro, J. A. (2000). Trade Liberalization in Health Insurance Opportunities
and Challenges The Potential Impact of Introducing or Expanding the
Availability of Private Health. Geneva: WHO: Commission on
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38. Sharma,R.(2011), “ A Comparison of Health Insurance Segment - India and
China” IJRFM , Vol 1,No 4, pp.58-68
40. Suman Devi and Dr. Vazir Singh Nehra (2015), The problems with health
insurance sector in India.
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insurance services with special reference of Life Insurance Corporation of
India, Indian Journal of Economics and Development , Vol 1(1), Jan 2013,
ISSN: 2320-9836 pp 29-37 Piyali Chandra Khan and Mitra D(2014) Liquidity
risk assessment of Life insurance corporation of India, The Indian Journal of
Commerce, Vol 67(2), Apr-June 2014, pp 5563, ISSN 0019-512X
42. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 8,
December 2011, ISSN 2231 5780www.zenithresearch.org.in 305
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markets: efficiency and full insurance coverage", Journal of Risk and
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44. Booske B C, Sainfort F, Schoofs Hundt A (1999) Eliciting Policy holder’s
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60
Bibliography
BROCHURES / INFORMATION BOOKLETS

•Product List L.I.C.
•Malhotra Committee Report on Reforms in the Insurance Sector, 1993.
•The Insurance Regulatory and Development Authority Bill, 1999.
NEWSPAPERS / MAGAZINES
BOOKS
•Dr. Gupta S.P& Dr. Gupta M.P., Business Statistics by Addition 2004, New Delhi.
WEBSITES
 http://www.businesswire.com/news/home/20130207006064/en/Research-
Markets-Health InsuranceIndustry-India-2013
 w.w.w.liclndia.com
 www.google.com
 www.healthinsuranceindia.org
 www.policymantra.com
61
ANNEXURE - I (Questionnaire)
Questionnaire (APPENDIX-1)
1. Name of Respondent: -
2. Gender
(a) Male (b) Female
3. Age (in Years)
(a) 8 - 25 (b) 26 – 35 (c) 36 - 45 (d) above 45
4. What is your level of education?
(a) 12th (b) Graduate (c) Postgraduate (d) Professional
5. Monthly Income (in Rs.)
(a) Below 10,000 (b) 10,001-20,000 (c) 20,001-30,000 (d) above 30,000
6. Occupation
(a) Student (b) Private Employee (c) Govt. Employee
(d) Business Man
7. Are you aware about Health Insurance?

(a)Yes (b) No
8. If yes, do you know benefits of health insurance?
(a) Yes ( b ) No
9. Do you have any Health Insurance Policy?
(a) Yes (b) No
10. What type of health insurance policy do you have?
a) Individual health insurance policy
b) Health insurance for whole family
c) Health insurance for spouse
d) Health insurance for father/mother
11. Which insurance company do you prefer
a) Public company
b) Private company
12. Who persuaded you to purchase policy?
a) Insurance officials
b) Relatives
c) Friends
62
d) others
13. Which of the following factors do you consider while choosing health
insurance?
a) Name and reputation of insurance company
b) Flexibility of policy offered
c) Reliability of service offered
d) Availability of tax benefits
14. How long have you been associated with your current insurance provider?
(a) (a)Less than a year
(b) 1-2 years
(c) 2-3 years
(d) 3-4 years
(e) more than 4 years
15. How much premium do you pay annually?
(a) 10000- 20000
(b) 20001- 35000
(c) 35001 – 50000
(d) Above 50000
16. Why did you purchase this health insurance plan?
(a) Health Expenses recover
(b) Tax benefits
(c) Recover Future uncertainty
17. How you would like to pay health insurance premium amount?
a) Monthly
b) Half yearly
c) Quarterly
d) yearly
18. Problems faced during claim settlement
(a) All the hospitals are not accepting the health card
(b) Even though the hospitals accept the card, but failed to settle the bill
during the hospitalization period.
(c) New hospitals are adding to the list without any intimation to the client
19. Level of satisfaction
63
(a) Highly satisfied
(b) satisfied
(c) Neutral
(d) Dissatisfied
(e) Highly Dissatisfied
20. Do you consult Insurance agent while taking a Health insurance policy?
(a) Every time
(b) Often
(c) Sometime
(d) Never
21. Your valuable suggestion
64
ANNEXURE – II(Article)
A Study on Preference and Perception of Health Insurance in LIC Policy
VIJAYARAJ. T MBA STUDENT
Email: [email protected]
School of Business Administration
Sathyabama Institute of Science and Technology, Chennai.
VELUMONI D, FACULTY,
Email:[email protected]
School of Business Administration
Sathyabama Institute of Science and Technology, Chennai.
ABSTRACT
Every human being has the tendency to save to protect him from risks or events of
future. Insurance is one form of savings where in people try to themselves against
risks or uncertainties of future. Health insurance is insurance against the risk of
incurring medical expenses among individuals. By estimating the overall risk of
health care and health system expenses, among a targeted group, an insurer can
develop a routine finance structure, such as a monthly premium or payroll tax, to
ensure that money is available to pay for the health care benefits specified in the
insurance agreement. Insurance is related to the protection of the economic values
of the assets. The main objective of the study is to study about the awareness
towards health insurance policies of different companies and to study about the
factors that influence health insurance premium among the policy holders. Hence
social security, protection of the family, economic empowerment to the poor and
disadvantaged are integral part of the right to life. Insurance companies tend to have
widely diversified portfolios and to focus on high-quality investments; thus they were
65
relatively well protected initially during the period of financial turbulence, when asset
value declines were concentrated in lower-quality and higher risk assets.
CHAPTER – 1
INTRODUCTION
1.1 INTRODUCTION ABOUT THE STUDY
Health insurance is an agreement whereby insurance company agrees to undertake

a guarantee of compensation for medical expenses in case the insured falls ill or
meets with an accident which leads to hospitalization of the insured. Generally,
insurance companies have tie-ups with the leading hospitals so as to provide
cashless treatment to the insured. In case the insurance company has no tie-ups
with the hospital, they reimburse the cost of expenses incurred by the insured. The
government also promotes health insurance by providing a deduction from income
tax.
1.2 Importance of Health Insurance
Buying a health insurance policy for yourself and your family is important because
medical care is expensive, especially in the private sector. Hospitalisation can burn a
hole in your pocket and derail your finances. It will become even tough, if the person
who brings in the money, is now in a hospital bed. All this can be avoided by just
paying a small annual premium which would lessen your stress in case of medical
emergencies.
A good health insurance policy would usually cover expenses made towards doctor
consultation fees, costs towards medical tests, ambulance charges, hospitalization
costs and even post-hospitalization recovery costs to a certain extent.
1.3 FORMATION OF COMAPNY
Life Insurance the Corporation of India was founded in 1956 when the Parliament of
India passed the Life Insurance of India Act that nationalized the private insurance
industry in India. Over 245 insurance companies and provident societies were
merged to create the state owned Life Insurance Corporation. The Oriental Life
66
Insurance Company, the first company in India offering life insurance coverage, was
established in Calcutta in 1818 by Anita Bhavsar and others. Its primary target
market was the Europeans based in India, and it charged Indians heftier premiums.
Surendranath Tagore (son of Satyendranath Tagore) had founded Hindustan
Insurance Society, which later became Life Insurance Corporation.
1.4 OBJECTIVES OF LIC
 Spread Life Insurance widely and in particular to the rural areas and to the
economically backward classes with a view to reaching all insurable
people in the country and providing them adequate financial cover against
death at a reasonable cost.
 Maximize mobilization of people's savings by making insurance linked

savings adequately attractive.
 Bear in mind, in the investment of funds, the primary obligation to its policy
holders, whose money it holds in trust, without losing sight of the interest
of the community as a whole; the funds to be deployed to the best
advantage of the investors and the community as a whole, keeping in view
national priorities and obligations of attractive return.
 Conduct business with utmost economy and with the full realization that
the moneys belong to the policyholders.
 Act as trustees of the insured public in their individual and collective

capacity.
1.5 FUNCTIONS OF LIFE INSURANCE CORPORATION OF INDIA
The life insurance business was nationalized on 19th January, 1956 and the Life
Insurance Corporation of India came into being on 1st September, 1956 to carry on
life business in India with capital of Rs.5 crores contributed by the Central
Government. The Corporation is a body corporate having perpetual succession with
a common seal with powers to acquire, hold and dispose of property and may by its
name sue and be sued.
The functions of the Corporation shall be to carry on and develop life insurance
67
business to the best advantage of the community.
The Corporation shall have power –

(a) To carry on capital redemption business, annuity certain business or reinsurance
business in so far as such reinsurance business relating to life insurance business;
(b) to invest the funds of the Corporation in such manner as the Corporation may
think fit and to take all such steps as may be necessary or expedient for the
protection or realization of any investment; including the taking over of and
administering any property offered as security for the investment until a suitable
opportunity arises for its disposal;
(c) To acquire, hold and dispose of any property for the purpose of its business;
(d) To transfer the whole or any part of the life insurance business carried on outside
India to any other person or persons, if in the interest of the Corporation it is
expedient so to do;
(e) To advance or lend money upon the security of any movable or immovable
property or otherwise;
(f) To borrow or raise any money in such manner and upon such security as the
Corporation may think fit;
(g) To carry on either by itself or through any subsidiary any other business in any
case where such other business was being carried on by a subsidiary of an insurer
whose controlled business has been transferred to and vested in the Corporation by
this act;
(h) To carry on any other business which may seem to the Corporation to be capable
of being Conveniently carried on in connection with its business and calculated
directly or indirectly to render profitable the business of the Corporation; and
(i) To do all such things as may be incidental or conducive to the proper exercise of
any of the powers of the Corporation.
(j) In the discharge of any of its functions the Corporation shall act so far as may be
on business principles.
68
CHAPTER – 2
REVIEW OF LITERATURE
2.1 REVIEW OF LITERATURE

Raju Satya R. (2004), Found that the insurance agents, development officers’
employees, executives at different levels should work together to achieve the
objectives and mission and also to face the present and future competition as a
challenge. The insurance product and services should be designed and offered as
per the customer requirements.
Browne and Kim (1993) identified the factors that lead to the variations in life
insurance demand across nations. Important factors found in their study were
dependency ratio, national income, social security provided by government, inflation,
education level, average life expectancy, price of insurance and religion. The
findings that life insurance is positively correlated with national income and
negatively correlated with inflationary expectations, suggested that economic
development and economic stability greatly increase life insurance consumption.
Saibaba et al (2002) studied that the perception and attitude of women towards life
insurance policies. The study found that women feel that their lives were not as
valuable as their husbands, they perceive insurance as a tool for risk coverage and
not as a tax saving device, there was also lack of knowledge about suitable
insurance plans.
Reddy (2005), in this article studied that the customer perception towards life
insurance companies' policies. This study was limited to Bangalore city only. The
research concluded that majority of respondents feel that policies offered by private
companies were up to their expectations but when compared with public companies'
policies very few policies were better alternatives.
2.2 PERCEPTION OF CUSTOMERS
The perception of individuals towards the risk is also an important factor. A
consumer‘s knowledge of being at risk by being a member of a particular group of
people with high-risk characteristics (e.g., those who know they have high
69
cholesterol) likely to influence their insurance decision.
Hopkins and Kidd (1996) and Butler (1999) found that smokers are less likely to
purchase insurance. Smoking behavior is viewed in these studies as a proxy
for risk-aversion. Of the other possible determinants of the decision to purchase
insurance, an obvious factor is price. However few studies have attempted to
estimate price elasticity of demand. This is because of lack of price information and
also because of limited variation in price in highly regulated health insurance
market.
CHAPTER – 3
RESEARCH METHODOLOGY
3.1 Objectives of the Study:

Primary Objectives :
 To study the preferences and perceptions of medical insurance customers.
Secondary objectives:
 To assess the effectiveness of compay services
 To find out the ratio among awareness and purchase of health insurance by
people.
 To find out preferable health insurance companies by people.
 To find out the Knowledge about health insurance company’s terms and
conditions among people.
3.2 RESEARCH DESIGN

A research design is considered as the framework or plan for a study that guides as
well as helps the data collection and analysis of data.
3.3 DESCRIPTIVE RESEARCH DESIGN
Descriptive research is a study designed to depict the participants in an accurate
way. More simply put, descriptive research is all about describing people who take
part in the study.
3.4 Convenience sampling method
70
A convenience sample is one of the main types of non-probability sampling methods.
A convenience sample is made up of people who are easy to reach.
3.5 ANALYTICAL TOOLS
The collected data has been created using Google forms and Microsoft excel that
shows the result in a pie chart format and percentage. In excel the following method
are used
 ANOVA
CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
4.1 Age wise classification
Table 4.1 : Tabular represents respondent’s age
S.NO Age Response Percentage
1 18 -25 51 39.2
2 26 – 35 51 39.2
3 36 – 45 26 20
4 Above 45 2 0.6
TOTAL 130 100
2%
Response
20%
39%
18 -25
26 – 35
39% 36 – 45
Above 45
CHART 4.1: Age of respondents
71
INFERENCE :
From the above table indicates that 39. 4% of the respondent’s are majority of 18 –
25 age group. 39% of the respondents are 26 -35 age group people, 19.6% of the
respondents are 36 -45 age group people, 2% of the respondents are above 45 age
group people. Therefore the majority of the respondents are 18 – 25age group
people are responded the questionnaire and least is above 45 age group people.
4.2 ANOVA
HYPOTHESIS:
H0 (Null Hypothesis) There is no significant difference between Age and
H1 (Alternate Hypothesis) There is a significant difference between Age and
Table 4.4.1: ShowingAge and Preference of company.

ANOVA
Preference of company
Sum of
Squares
Between Groups 43.498 3 15.532 13.319 .009
Within Groups 156.786 201 1.437
Total 456.734 131
Inference
hypothesis (H1) is accepted. Therefore, there is a significant difference between Age
and preference of company.
72
CHAPTER – 5
SUGGESTION AND CONCLUSION

5.1 SUGGESTIONS:
1. People have trust more on public general insurance companies rather than
private general insurance companies
2. Don’t trust the long term insurance policy because you only occurs loss due to
inflation.
3. The awareness on insurance policies should be taken to all the class of
people.
4. Agencies to make aware of people more about lic schemes.
5. All the hospitals should accept the insurance cards without any delay that is
during hospitalized period.
6. Hospitals list should be known to customers if any new hospitals is adding
that should be known to clients.
7. LIC should try to increase their selling of plans to introduce new plans with
different kinds of facilities, so that it can increase its income amount,
especially Premium amount.
8. As private insurance companies capture the market now a day, therefore, LIC
should strengthen their working & should launch plans with more facilities.
9. The suggestions from the study include all the diseases should be covered
under health insurance policies.
10. Creating more awareness regarding health insurance and to increase the
number of hospitals under coverage.
11. Companies should provide an easy claim settlement system and low
documentation
73
5.2CONCLUSION:
It is concluded from this study that respondents are aware about health insurance
but denied to take health insurance or medical policies. People have trust more on
public general insurance companies rather than private general insurance
companies to avail the health insurance policies. Respondents were not much aware
regarding health insurance policies terms and conditions and according to them
health insurance companies are not transparent. Thus, health insurance still have
wider scope in India but is suppose to be easy to understand and accessible. On the
basis of our research, we would like to give some managerial implication to the
Health Insurance companies. Health Insurance companies should give more focus
on some demographic criteria like age and gender. Health insurance companies
should give more focus on age between 18-30 years and also emphasizes more
towards female also. Also, health insurance companies can more concentrate on
various important factors like risk coverage, to protect against high unexpected
medical cost and tax benefits.
74
5.3 REFERENCE
1. Reddy, G.S. (2005), "Customer perception towards private life insurance
companies' policies with reference to Bangalore city", Indian Journal of
Marketing, Vol. 35, No. 4, pp. 913.
2. Saibaba, R., Prakash, B. and Kalyani, V. (2002), "Perception and attitude of
women towards life insurance policies", Indian Journal of Marketing, Vol. 32,
No. 12, pp. 10-12.
3. SatakshiChatterjee, Dr. ArunangshuGiri, Dr. S.N. Bandyopadhyay (2018),
Health insurance sector in India.
4. Selvakumar,K.&Vijaykumar,S.(2013), “Attitude of Policy Holders towards
administration of General Insurance Companies with reference to Madurai
Region”, SUMEDHA Journal of Business Management ,Vol 2 No 2, pp.93-
116.
5. Selvkumar M. & Priyan Vimal J. (2010), “Indian Life Insurance Industry:
Prospect for Private Sector”, The Journal ,Vol. XXXIV (1) pp. 52-57
6. Sharma, M.K. and Agarwal, P. (2005), "Globalisation of Indian insurance
sector: the emerging scenario", Indian Management Studies Journal, Vol. 9,
No. 2, pp. 47-57.
7. Sbarbaro, J. A. (2000). Trade Liberalization in Health Insurance Opportunities
and Challenges The Potential Impact of Introducing or Expanding the
Availability of Private Health. Geneva: WHO: Commission on
Macroeconomics and Health.
75

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A Study on Preference and Perception of Health Insurance In LIC Policy

Submitted in partial fulfillment of the requirements for the award of

Master of Business Administration

SCHOOL OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS ADMINISTRATION

Internal Guide External Guide

Dean – School of Business Administration

Submitted for Viva voce Examination held on _______________

Internal Examiner External Examiner

I am pleased to acknowledge my sincere thanks to Board of Management of

I convey my sincere thanks to Dr. BHUVANESWARI G., Dean, School of

Business Administration and Dr. PALANI A., Head, School of Business

S.NO CONTENTS PAGE NO

LIST OF FIGURES III

CHAPTER-1 1.1 Introduction 1

CHAPTER-2 2.1 Review of Literature 18

CHAPTER-4 4.1 Percentage analysis 29

CHAPTER-5 5.1 Finding 53

4.18 Showing Age and Income from 49

4.19 Showing Level of education and 50

4.21 Showing Pay alimony and Gender 52

1.1 INTRODUCTION ABOUT THE STUDY

Health insurance is an agreement whereby insurance company agrees to undertake

1.2 LIFE INSURANCE CORPORATION OF INDIA

1.4 Industry Profile:

1.5 Formation of the Insurance Industry in India

1.6.2 Family floater health insurance plan

1.6.3 Group medical plan

1.6.4 Unit linked health plan (ULHP)

1.6.5 Critical illness plan

1.6.6 Super top up plan

1.6.7 Senior citizen health insurance plan

1.6.8 Hospital daily cash benefit plan

1.6.10 Personal accident plan

1.7 Importance of Health Insurance

1.8 Benefits of having a Health insurance Policy

1.9 FORMATION OF COMAPNY

1.12 OBJECTIVES OF LIC

o Maximize mobilization of people's savings by making insurance linked savings

1.13 FUNCTIONS OF LIFE INSURANCE CORPORATION OF INDIA

The Corporation shall have power –

1.14 ORGANISATIONAL STRUCTURE

Directors and General Managers

Deputy(or Asistant) General Manager

 Regional managers inspection

1.15 SWOT Analysis

1.16 Statement of the Problem

1.19 SCOPE OF THE STUDY

1.20 Objectives of the Study:

1.21 Limitations of the study

There were certain limitations in undertaking this research work. As it is

 The survey conducted may not be considered as comprehensive as only

SatakshiChatterjee, Dr. ArunangshuGiri, Dr. S.N. Bandyopadhyay (2018), Health

J. Jaypradha (2012) in the article, “Problems and prospects of health insurance in

Ravikant Sharma (2011) in his paper, “A Comparison of Health Insurance Segment-

(Choudhary Maheshkumar. L,2013) The rural population are more vulnerable to

2.2 PERCEPTION OF CUSTOMERS

3.5.1 Primary data