CHAPTER-1

INTRODUCTION

INDUSTRY PROFILE

Insurance is one of the major segments of the financial market. The insurance
business is distinctive in the sense that it is rewarded for managing the risk of other parties. In
India insurance sector is not only playing a role within the financial system but also has a
significant socio-economic function of providing risk cover to the poor population. With the
opening up of the Indian insurance market, competition has become intense. Every company
is trying to woo customers to have a large chunk of the market share but barring a few
companies, most of the new insurance companies are struggling to survive in the market. In
spite of the importance of insurance, it is still in nascent stage in India. Nearly 80 percent of
the Indian population is without Life insurance cover and Health insurance, the penetration
rates of health and other non-life insurances in India are also well below the international
level.

HISTORY OF INSURANCE – ORIGIN, AND GROWTH

In India, insurance has a deep-rooted history. It finds reference in the writings

of Manu ( Manusmrithi ), Yagnavalkya (Dharmasastra ), and Kautilya (Arthasastra). All the
writings talk in terms of the pooling of resources that could be redistributed in times of
calamities such as floods, fire, epidemics, and famine. This 2 was possibly a precursor to
modern-day insurance. Early Indian history has preserved the earliest traces of insurance in
the form of marine trade loans and transporters’ contracts. The insurance industry in India has
progressed over time heavily drawing from other countries, specifically England.

In the year 1818, the industry saw the advent of the life insurance business in
India with the establishment of the Oriental Life Insurance Company in Calcutta. This
Company however failed in 1834. Then in 1829, the Madras Equitable had begun transacting
life insurance business in the Madras Presidency. Moving on 1870 saw the enactment of the
British Insurance Act and in the last three decades of the nineteenth century, the Bombay
Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay
Presidency. This era, however, was dominated by foreign insurance offices which did good
business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London
Globe Insurance and the Indian offices were up for hard competition from the foreign
companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India.
The Indian Life Assurance Companies Act, of 1912 was the first statutory measure used to
regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and non-life business transacted
in India by Indian and foreign insurers including provident insurance societies. In 1938, with
a view to protecting the interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for
effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a
large number of insurance companies and the level of competition was high. There were also
accusations of unfair trade practices. The Government of India, therefore, decided to
nationalize the insurance business.

An Ordinance was issued on 19th January 1956 nationalizing the Life Insurance sector and
Life Insurance Corporation came into its presence in the same year. The LIC absorbed 154
Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign
insurers in all. The LIC had domination till the late 90s when the Insurance sector was
reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west and the
consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a
heritage of British occupation. General Insurance in India has its roots in the establishment of
Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the
Indian Mercantile Insurance Ltd was set up. This was the first company to handle all classes
of the general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance
Association of India. The General Insurance Council outlined a code of conduct for
guaranteeing fair conduct and sound business practices.

In 1968, the Insurance Act was modified to regulate investments and set minimum solvency
margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general
insurance business was nationalized with effect from 1st January, 1973. 107 insurers were
joined and grouped into four companies, namely National Insurance Company Ltd., the New
India Assurance Company Ltd., the Oriental Insurance Company Ltd, and the United India
Insurance Company Ltd. The General Insurance Corporation of India was amalgamated as a
company in 1971 and it inaugurates business on January 1st, 1973.

This millennium has seen insurance come a full circle in a journey outspreading to nearly 200
years. The process of re-opening of the sector had begun in the early 1990s and the last
decade and more has seen it being opened up significantly. In 1993, the Government set up a
committee under the chairmanship of RN Malhotra, former Governor of RBI, to intend
recommendations for reforms in the insurance sector. The objective was to counterpart the
reforms that originated in the financial sector. The committee succumbed its report in 1994
wherein, among other things, it endorsed that the private sector be permitted to enter the
insurance industry. They stated that foreign companies are allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.

Succeeding the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was established as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body
in April 2000. The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower premiums while
warranting the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were certified ownership of up to 26%. The Authority has
the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards bordered various regulations ranging from registration of companies for
carrying on insurance business to protection of policyholders’ interests.

In December 2000, the subsidiaries of the General Insurance Corporation of India were
rationalized as independent companies and at the same time, GIC was transformed into a
national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July
2002.

Today there are 24 general insurance companies comprising the ECGC and Agriculture
Insurance Corporation of India and 23 life insurance companies operating in the country.

General Insurance Vs. Life Insurance

Several life insurance companies have of late plunged into the health segment, which till
recently was controlled by general insurance companies. Among others, ICICI Prudential has
propelled Hospital Care and Crisis Cover and Bajaj Allianz, the Care First plan. Life
Insurance Corporation, too, plans to roll out products soon. But, are these products any
different from those offered by the general insurance companies, popular as mediclaim
policies?

Advantages of Health insurance offered by Life insurers: Because of the long-term nature
of the plans, the policyholder can plan in advance his future medical/care expenses. But it is
not so under General insurance. Since the general insurance policies are subject to renewal
every year, if the policyholder has been making several claims and is considered a risk, the
general insurance company may deny renewal or renew it for a much higher premium.

Advantages of Health insurance offered by General insurers: Though a lump sum amount
is compensated by life insurers and is of long-term nature, this 12 comes with a charge. They
charge bigger premiums compared with the General insurers. In addition, most general
insurance companies deal with medical charges up to 30 days before a person is hospitalized
and pay the dues if a person has been undergoing treatment at home - also named domiciliary
hospitalization. The life insurers seem to dearth this facility at this point in time.

2 List of Health Insurance Companies in India Following are the medical insurance
companies in India:

1. Apollo Munich Health Insurance Company limited This is a joint venture between Apollo
Hospitals and Munich Health both as individual companies have prospered in providing
healthcare services. Their joint venture is also their effort to deliver quality insurance services
to people.

2. Star Health and Allied Insurance Co Ltd This company is the country’s first stand-alone
health insurance company in India distributing Personal Accident, Mediclaim and Travel
insurance.

3. Future Generali India Insurance Company Ltd Future Generali is a joint venture between
the India-based Future Group and the Italy-based Generali Group. It is extant in both life and
non-life insurance business. 13

4. Bajaj Allianz General Insurance Co Ltd Bajaj Allianz General Insurance Company
Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto
Limited) and Allianz SE. Bajaj Finserv Limited holds 74% and the remaining 26% is held by
Allianz, SE.

5. ICICI Lombard General Insurance Co Ltd ICICI Lombard GIC Ltd. is a joint venture
between ICICI Bank Limited, India‘s second-largest bank, and Fairfax Financial Holdings
Limited, a Canada-based diversified financial services company engaged in general
insurance, reinsurance, insurance claims management, and investment management.

6. National Insurance Co Ltd It is a government-controlled undertaking and provides motor,

health, and fire insurance.

7. Iffco Tokio General Insurance Co Ltd It is a joint venture between the Indian Farmers
Fertilizer Co-operative (IFFCO) and its associates and Tokio Marine and Nichido Fire Group,
the largest listed insurance group in Japan. 14

8. The New India Assurance Co Ltd It is a nationalized general insurance company with its
presence abroad as well.

9. The Oriental Insurance Co Ltd It is a central government undertaking providing general

insurance and has operations in Nepal, Kuwait, and Dubai.
 10. Reliance General Insurance Co Ltd It is one of the private insurance companies
providing motor, health, travel insurance, etc.

11. United India Insurance Co Ltd It is a nationalized general insurance company having its
operation in the whole country.

12. Royal Sundaram Alliance Insurance Co Ltd It is a joint venture between Sundaram
Finance, one of the most respected non-banking financial institutions in India, and RSA, one
of the oldest and the second-largest general insurers in the UK. 15

13. TATA AIG General Insurance Co Ltd Tata AIG General Insurance Company Limited is a
joint venture between Tata Group and the renowned American International Group, Inc. This
insurance firm started operations on April 1, 2001.

14. Cholamandalam MS General Insurance Co Ltd It is a private general and health insurer
having a pan India presence.

15. HDFC ERGO General Insurance Co Ltd HDFC ERGO General Insurance Company
Limited is a 74:26 joint venture between HDFC Limited, India‘s premier Housing Finance
Institution, and ERGO International AG, the primary insurance entity of Munich Re Group.

16. Universal Sompo General Insurance Co Ltd It is a joint venture of four Indian companies
(with three banks and an FMCG company) and a Japanese general insurance provider. It is a
health insurer having operations in the whole country.

17. Bharti AXA General Insurance Co Ltd It is a joint venture between Bharti Enterprises of
India and AXA group of Europe. 16

18. SBI General Insurance Company Ltd SBI General Insurance Company Limited is a joint
venture between the State Bank of India and Insurance Australia Group (IAG). SBI owns
74% of the total capital and IAG the remaining 26%.

19. Raheja QBE General Insurance Co Ltd Raheja QBE General Insurance Company
Limited, a joint venture general insurance company promoted by Prism Cement Limited,
India and QBE Holdings (AAP) Pty Limited, a wholly-owned subsidiary of QBE Insurance
Group Limited, Australia.

20. MAX Bupa Health Insurance Company Ltd MAX Bupa Health Insurance Company is
formed with a joint venture between Max India Limited and the UK-based Bupa Finance
PLC, UK.

21. L & T General Insurance Co Ltd L & T General Insurance Company Limited (L & T
Insurance) is a wholly-owned subsidiary of Larsen & Toubro Limited.
22. Religare Health Insurance Co Ltd It is a company formed by Religare enterprises,
Corporation Bank, and Union Bank of India. 17

23. Magna HDI General Insurance Co Ltd Magma Fincorp Limited and its Promoters signed
a Joint Venture agreement with HDI-Gerling International Holding AG, Germany on 28 July
2009 at Kolkata to enter into the general insurance sector in India.

24. Liberty Videocon General Insurance It is newest health insurance provider and a
company formed with joint venture between Liberty Videocon General Insurance, a joint
venture between the Videocon Group and the US-based Liberty Mutual Insurance Group .

Standalone Health Insurance Companies

Private Sector
· Star Health and Allied Insurance company Ltd
· Religare Health Insurance Company Ltd
· Max Bupa Health Insurance
· Apollo Munich Health Insurance
· Cigna ttk general insurance company ltd

EVOLUTION OF HEALTH INSURANCE

The concept of Health Insurance was offered in the year 1694 by Hugh the Elder Chamberlen
from the Peter Chamberlen family. In the 19th Century “Accident Assurance” began to be
accessible which functioned much like modern disability 18 insurance. This payment model
was sustained until the start of the 20th century. During the middle to late 20th-century
traditional disability insurance developed into modern health insurance programs. Today,
most wide-ranging health insurance programs shield the cost of routine, preventive, and
emergency health care procedures and also most prescription drugs. But this is not always the
case.

Healthcare in India is in a state of massive transition: increased income and health awareness
among the majority of the classes, price liberalization, drop-in bureaucracy, and the
introduction of private healthcare funding drive the change.

Over the last 50 years, India has accomplished a lot in terms of health insurance. Before
independence, the health structure was in gloomy condition i.e. high indisposition and high
mortality, and occurrence of infectious diseases. Since independence, emphasis has been put
on primary health care and we made considerable growth in improving the health status of
the country. But still, India is way behind many fast developing countries such as China,
Vietnam, and Sri Lanka in health indicators.

Health insurance, which remains a highly underdeveloped and less important segment of the
product portfolios, is now emergent as a tool to manage the financial needs of people to seek
health services.
 The new economic policy and liberalization process shadowed by the Government of India
since 1991 paved the way for the privatization of the insurance sector in the country. The
Insurance Regulatory and Development Authority (IRDA) Bill, approved in the Indian
parliament, is the significant beginning of changes having significant implications for the
health sector.

Health Insurance is more multifaceted than other segments of the insurance business because
of serious conflicts arising out of adverse selection, moral threat, unavailability of data, and
information gap problems. Health sector policy formulation, valuation, and implementation
are extremely complex tasks, especially, in changing epidemiological, institutional,
technological, and political scenarios. Proper understanding of the Indian Health situation and
application of principles of insurance, keeping in view the social certainties and national
objectives, are important. The following areas were discussed

· Review of health insurance scenario in India

· Comparison of health insurance offered by a Life and General Insurer
· Various Health Insurance products available in India
· Need for Long term care plans
· Health Insurance for senior citizens
· Health Ratios
· Models of Long term care in other countries
· Role of IRDA
· Implications of privatization on health insurance.

Global Perceptive of Health Insurance

GERMANY

• Mandatory long-term care (LTC) insurance was announced throughout Germany at the
beginning of 1995. Up to that date, long-term care had not been a public concern like
pensions and health care.
• According to German law, children are gratified to support their parents in old age, to the
degree that their own resources are sufficient. Only if family income and wealth has proved
to be unsatisfactory can the elderly may apply for income support.

FINANCING

• The German insurance is a Pay as you go (PAYG) system where risks are pooled and
benefits are independent of earlier contributions. ‘Pay as You Go’ in which current
contributors pay for current recipients of care.
• One peculiarity of the LTC insurance component is that it has defined donations and defined
benefits at the same time. This means that total benefits and total contributions must match on
average, and so far this requirement seems to have been met.
 • All employees, as well as individuals with some other kind of income, have to be insured.
In addition, voluntary insurance is offered to some groups.
• Employers and employees pay the same percentage of the wage. Retired people also
contribute to the insurance. Civil servants since they are not part of the 21 social health
insurance program are indebted to take up private insurance and get part of the contribution
paid by their employer.
• For people dependent on income support, the local authority concerned may choose
between paying the contributions on behalf of the individuals concerned and taking the risk
of having to pay for their care.
• Because it is a PAYG system, the LTC insurance has not been able to build up more than a
small financial balance. According to the law, the balance must be sufficient to continue to
make payments for 1.5 months; at the moment it is sufficient to cover three. Benefits
• It takes five years to qualify for benefits. Apart from that, the only succeeding requirement
is the need for care, so benefits are paid independent of age. Three kinds of benefits are
offered: professional domiciliary care, institutional care, and benefits in cash. Different kinds
of benefits may also be combined.
• Benefits are not dependent on the income of the individual.
• People applying for benefits are examined by a doctor and then divided into three groups.
The critical factors are the person’s ability to achieve activities of daily living (ADL),
together with the time that these activities are estimated to consume. Mental impairments are
not taken into account.

JAPAN

• Since Japan became industrialized quite late, it also developed social security systems
slightly later than most other developed countries.
• Family patterns changed as traditional caring arrangements based on three-generation
households and duties on children to look after elderly parents showed signs of breaking
down.
• In 1997, following a long discussion, mandatory long-term care insurance was passed in the
Japanese parliament.

Financing

• The LTC insurance is financed by 50% from taxes and by 50% from insurance premiums.
The tax revenues are collected by 50% from national taxes, and local and regional taxes
contribute with 25% each. Premiums are collected from people aged 40 years and over.
Family members are automatically covered.

• For the elderly, premiums are deducted from pensions. These premiums are also
income-related.

• The LTC insurance is controlled by municipalities. Benefits • Suitability for benefits from
the LTC insurance is solely based on need. Thus, the financial position and family structure
of the insured are not taken into account. The LTC insurance covers formal as well as
home-based care, and clients in all categories except the least needy may choose between
them.
• There are three kinds of institutions: former social service nursing homes, formerly
health-insurance financed homes for the elderly, and medical nursing care 23 facilities. Home
care services included are nursing care, rehabilitation, medical advice, and various
community services.
• Unlike the German system there are no cash benefits provided in the scheme.
• When the private LTC insurance was announced, several large for-profit corporations made
huge investments in-home services in the anticipation of increased demand due to the
increased freedom to choose providers. However, recipients have proved to be more
conventional than expected and stayed with their former providers. This has incurred some
losses on private corporations offering home care.

UNITED STATES

• The United States had a quite ambitious social welfare program for the elderly already
around the turn of the twentieth century. At this time, more than one-quarter of federal
expenditure was devoted to pensions for Civil War veterans and their families.
• Long-term care makes up a small but increasing part of public spending in the United
States. Financing
• In the United States, funds for health and long-term care for the elderly are provided from
public as well as private sources. Public funding is based on Medicaid and Medicare
programs, whilst the private element comprises private insurance as well as out-of-pocket
payments. • Medicaid is a tax-based program intended for low-income earners. It covers
hospital care as well as home care. Even if the Medicaid program was not originally designed
to concentrate on help for the elderly, it has changed into an important pillar for long-term
care financing
• Medicare is a national social insurance program. Contributions are paid either as ‘Medicare
tax’ while working or by continuing to pay premiums after retirement. Medicare compensates
nursing home costs if the protected has been treated in a hospital for at least three days.
Medicare only reimburses costs for doctors’ and nurses’ services. Home care is only provided
if the client needs skilled nursing care and is homebound. However, for clients meeting the
necessities, personal care services may be provided as well. Medicare home services are
provided for free
• In recent years, a private market for long-term care insurance has developed in the United
States. Private insurance companies – there are more than 100 of them – offer complimentary
insurance for costs connected to long-term care. The insurance products are designed for
cases where benefits from Medicare have been exhausted, and where the insured is not
entitled to Medicaid benefits. Insurance is voluntary and has normally been taken out
individually.
• Before signing up, the policyholder goes through a medical examination. The insurance
company also requests information regarding the customer’s consumption of medical
services, his or her lifestyle, and physical or mental disabilities, if any. Contributions are
based on these data, and sometimes they become ridiculously high. Estimates show that as
much as 20 % of the elderly population would be refused long-term care insurance. 25
Benefits
• Benefits offered by private long-term insurance policies vary. Some only include nursing
home care, whereas others only cover home care. Typically, only care given by nurses or
doctors is shielded. Normally, policies offer a fixed per diem compensation if care is needed.
Benefits are paid for a limited time; e.g. five years or remaining life years.
• The financing of LTC is a very topical issue in the United States. Weaknesses in the existing
system have received particular attention, and there is extensive concern that LTC may
become more challenging under the burden of aging. United Kingdom
• The main principle of the British LTC system as it advanced during the post-war era was
that local authorities provided care in residential homes, whereas the NHS took care of
principally frail people.

Financing

• In the UK there are two main sources of LTC funding (apart from consumers themselves),
namely local authorities and the NHS. Local authorities are responsible for the bulk of public
spending on LTC, and their share has increased in the last few years.
• Local authorities have two main sources of funding - government grants and council taxes.
Government grants are decided annually by the central 26 government and then dispersed to
the individual authorities according to a resource allocation formula.
• Since 1991, there is also a market for private LTC insurance that is growing slowly.
• The first private insurance policies for LTC costs were introduced in 1991 and there is now
a wide variety of policies presented on the market. There are two main types of insurance on
offer. The first one is pre-funded plans that are purchased by healthy people to protect them
against future costs of LTC. The other type is ‘immediate needs’ plans that are acquired by
people that are already disabled to insure the risk of uncertain survival duration. The payment
of funded benefits is normally accustomed on the failure of a certain number of ADLs:s and
not on personal circumstances – such as whether the client lives at home or in an institution.
Maximum benefits are normally limited

BENEFITS

• State financing covers residential as well as domiciliary care. Local authorities are obliged
to provide a valuation of need by a case manager. The case manager suggests a package of
services appropriate for the client in question.
• The majority of care is provided in the person’s own home. Home care is defined as
services that support the client to function as independently as possible and/or continue to
live in their own home. Services may involve repetitive household tasks within or outside the
home, personal care of the client, or respite care in support of the client’s regular careers. 27 •
Institutional care is provided in several different kinds of homes. The principal ones are
nursing homes and residential homes. Residential homes provide board and personal care
only, whereas nursing homes also deliver daily nursing care and thus are more targeted at
people with severe disabilities. In the last decade, there has been a steady increase in the
number of dual homes, providing both residential and nursing care

HEALTH INSURANCE INDUSTRY - OVERVIEW

The development of health insurance in India is a reproduction of broader policy changes that
are being felt in the Indian economy. Many economic functions that had been constrained to
the public sector since independence are now being opened to private sector involvement,
including the transformation of previously governmental organizations to private or
semi-private entities that theoretically must survive without direct government support. The
financial sector is no exemption.

As a part of its financial sector reform agenda, the Indian Government liberalized the Indian
insurance industry by the enactment of the Insurance Regulatory and Development Authority
(IRDA) Act by the Indian Parliament in 1999. This led to the opening up of the sector for the
contribution of private insurance companies. Prior to liberalization, the insurance sector
consisted of the government-owned Life Insurance Corporation of India that had domination
on health insurance business and the General Insurance Corporation of India and its four
non-life subsidiaries namely, National Insurance Co, New India Assurance Co., Oriental
Insurance Co., and United India Insurance Co. The new act did not provide for independent
health insurance companies and the new market has sustained the 28 established practices of
selling health insurance products through the existing public and new private insurance
companies.

The results of liberalization have been momentous. Since 1999, IRDA has licensed 24 new
private insurance companies, of which 21 have foreign equity participation. Major global
players like AEGON, FORTIS, FUTURE GENERALI, Principal and DAI-ICHI have tied-up
with Indian partners to set up insurance operations. Marketing health insurance is one of the
most challenging jobs in insurance marketing. This is because of the everlasting conflict
between the insurance companies which want to make a profit and the insured person who
wants to get as much recompense as possible from the insurance company. Commissions for
the health companies are very low and they seldom make profits from health insurance.
 COMPANY PROFILE

Mohan’s Medicity is a leading Multi-Speciality Hospital in Tamilnadu, known for its adoption of
professional standards. It is a Centre of excellence for the treatment of Oncology, Obstetrics &
Gynecology, and General Surgery patients. All kinds of major Onco & General Surgeries,
Minimally Invasive Surgeries, High-Risk Deliveries, Complicated Gynec Surgeries and Modern
Radiotherapeutic Procedures like IMRT, IGRT using Linear Accelerator, Day Care Chemotherapy
in Air-Conditioned HEPA Room with minimal side effects are carried out in our hospital. Cancer
is diagnosed within minutes in our center using the latest techniques like FNAC, Mammogram,
High-end Ultra Sonogram, etc., with the help of a Cytopathologist.

Our hospital is mainly involved in telling the exact nature of the disease, treatment outcomes, side
effects and cost of the treatment, etc., without any bios and the patients and their relatives are
allowed to discuss freely the disease and any matter they want to clarify. Unnecessary
investigations and unwanted treatments are never encouraged in our hospital. Our hospital staff
members are specially trained in administering chemotherapy with ease, assisting major surgical
resections with expertise, and taking care of the in-patients with compassion. Our out-patient staff
is well trained in managing emergencies and sick patients. Our ICU is fully equipped with a
Ventilator, Multi parameters, Fowler’s Cot, Central Oxygen, and Suction facilities under the care
of well-trained staff and medical officers.

We have a computerized medical record system and building facilities for the benefit of our
patients and we accept cash, card, RTGS, and DDs for payment. Our patients covered by
Insurance are treated on a Cashless basis. We have got 24 Hours power backup with generators,
stretcher lift, 24 Hours Ambulance Service, In-house Pharmacy, In-house Lab, Mammogram,
High-end Ultrasound, 300MA X-ray Plant, C-Arm, Neonatal Care Unit including the Warmer
with us. Our hospital has got Twin Air-Condition Theatre with all the latest Surgical Equipment
and facilities.
VISION
To offer the best patient care by multimodal treatment and state-of-the-art technology. To be a
center of excellence in Oncology and OBS and Gynecology in this part of the Country.

MISSION
To provide the highest quality treatment at an affordable cost to every citizen

STATEMENT OF THE PROBLEM

In health insurance, the role of public and private sector players is 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.

Objectives of the study

1. To assess the individual awareness about Health Insurance.
2. To know the preference of individuals regarding health insurance.
3. To evaluate consumption patterns of health insurance.
4. To assess the effectiveness of company services

SCOPE OF THE STUDY

The scope of the study is limited to the Mohans Merdicity Hospital Patients. The study deals
with qualitative data– views, opinions, perceptions, etc. of the people- which may vary from
time to time. It analyses sources and levels of awareness, factors affecting the selection of
health insurance, and the particular companies. It also studies the level of satisfaction of
customers.

LIMITATIONS OF THE STUDY

The present study has several limitations. First of all, it is based on sample hence all inherent
limitations of sample study are involved in this study. The sample size is limited in number.
Customers’ expectations and tastes can change as time passes by. Primary data were collected
from Mohan's Medicity Hospital Patients. Hence the findings can’t be generalized to People
belonging to another area.
HYPOTHESIS

A hypothesis is an assumption on which facts are to be tested. the hypothesis framed for the
present research is

Ho ( Null Hypothesis ): Customer satisfaction is more significant in the public sector than in
private sector companies.

H1 ( Alternative Hypothesis ): Customer satisfaction is more significant in the public sector

than in private sector companies.