The health insurance market covers very smaller part of the total population (about 10%) in India. Presently, schemes 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. The health insurance market in India is unique and has developed a strong growth potential in the recent years with the entry of many foreign players in the market.
The health insurance market in India was worth INR 5,125 crores with a compounded annual growth rate of 37 percent between 2002 and 2008. While the penetration of the health insurance market is still quite small, it is one of the fastest growing industries in India. CONCEPTUAL FRAMEWORK: 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. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. LITERATURE REVIEW: Literature Review on the Effects of Health Insurance
When a person experiences a bad shock to health, their medical expenses typically rise and their contribution to household income and home production (e. g. cooking or childcare) declines (e. g. Wagstaff and Doorslaer, 2003; Gertler, Levine & Moretti, 2003; Gertler and Gruber, 2002). According to the WHO, “Each year, approximately 150 million people experience financial catastrophe, meaning they are obliged to spend on health care more than 40% of the income available to them after meeting their basic needs.
” (WHO Factsheet N°320, 2007) Low income and high medical expenses can also lead to debt, sale of assets, and removal of children from school, especially in poor nations. A short-term health shock can thus contribute to long-term poverty (e. g. Van Damme et al, 2004; Annear et al, 2006). Literature Review on Selection into Insurance Understanding who chooses to purchase voluntary health insurance is important for understanding both how well targeted the insurance product is and the financial viability of the insurance program.
As explained below, the latter will be particularly sensitive to the existence of adverse versus positive selection Adverse Selection versus Positive Selection The extent of adverse selection or positive selection into insurance has important repercussions for an insurance provider’s ability to cover its costs. Standard insurance theory predicts that insurance markets will suffer from adverse selection, which occurs when less healthy people or people who are more risky with their health are more willing to purchase health insurance because they know that the amount they spend on healthcare will be larger than the premium they will pay.
(e. g. , Rothschild and Stiglitz 1976; Akerlof, 1970) Voluntary health insurance cannot be financially sustainable if adverse selection is severe, since only the most costly patients would find it worthwhile to purchase insurance, and premium levels will not be able to cover the high costs of care. On the other hand, another group of people that may buy health insurance are those who are very risk averse with both their health and their finances. These people may buy insurance to protect themselves financially, but may also be very healthy because they take extra care with their health.
This phenomenon, known as positive selection, may balance out adverse selection and allow an insurance company to pool risks and thus remain financially viable without subsidies. RATIONALE OF STUDY: 1. The main logic behind doing this study is that the concept of health insurance is the new in India so the awareness of that is not measure till now. 2. The second rationale of the study is that there are certain reasons to influence the customer to change their service provider. 3. Another rationale of study is to understand the consumer preference towards the health insurance because the perception may vary by customer to customer.
OBJECTIVES OF STUDY: 1. To study consumer perception towards health insurance companies and products with special reference to claim rates. 2. To assess the awareness regarding health insurance as well as various sources of awareness for it. 3. To invite suggestion for better claim rate of health insurance companies.
RESEARCH METHODOLOGY: THE STUDY: The research will be conducted on various factors which affect Job satisfaction among the employees working in Public Sector of age 25-35 years. THE DESIGN:
Some of the sampling techniques such as quota sampling and simple random sampling may be used. THE SAMPLE: A sample of 50 health insurance policy holder who has claimed for their health insurance policies will come under study and after collecting the data further calculation and analysis will be done and I will try to reach at prospective result. FOR DATA COLLECTON: Questionnaire will be used as a tool for Primary data collection in this study from consumer of different which have taken health insurance scheme and the consumer which are unaware of the schemes.
In questionnaire, nearly 12-15 determinants will be there and with the use of rating scale people will give their opinion.
DATA ANALYSIS: The data will be analysis using percentage based analysis with the help of bar graphs and pie charts. If necessary, hypothesis techniques such as chi square, z test etc. may also be used.
REFRENCES:- 1. www. managementparadise. com 2. www. seminarsonly. com 3. www. researchandmarket. com 4. Article- A critical assessment of existing health insurance models in India.