DEPARTMENT OF MANAGEMENT

SUMMER INTERNSHIP PROJECT REPORT ON

Investors Approach Towards Health Insurance

SUMITTED BY

AJAY MUNJAL (LOVELY PROFESSIONAL UNIVERSITY)

S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. INTRODUCTION OF THE COMPANY INTRODUCTION OF THE PROJECT OBJECTIVESOF STUDY LITERATURE REVIEW METHODOLOGY ANALYSIS Finding RECOMMENDATIONS REFRENCES QUESTIONAIRE

Reliance Securities Ltd.

Reliance Securities, A Reliance Capital Limited Company, is the financial services division of Reliance Anil DhirubhaiAmbani (ADA) Group. Reliance ADA group is among top 3 business houses in India with wide range of presence across various sectors. Group's major interests ranges from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment. Reliance Securities has over 22 lakhs customers and more than 10'000 branches in around 5000 cities in India. Company is among the largest broking and distribution house of financial products and having share of more than 3% of total stock market volume at BSE & NSE. Rsec.co.in is the web based investment portal (with Online Stock Trading) from Reliance Securities. This website enables its customer to invest & manage most of the services provided by Reliance Securities including Equity (Stock) Trading, Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money Transfer, Currency Derivatives, Gold Coins and Credit Cards Services. Company recently entered in to Wealth Management with tools like investment in equity-linked portfolio management services, structured products, insurance and mutual funds. The Reliance Securities website uses special security features 'Security Token', which makes your online trading experience more secure without complexity. Trade In: NSE, BSE & MCX-SX, MCX, NCDEX, NMCE

Investment Options The investment options available with Reliance Securities are as below: 1. Equities Trading - Delivery, Intraday, leveraged trading based on Cash Collaterals, Cover order along with stop loss, After market Hours Orders, Regular Stock Purchase Plans, R-Mobile Trading 2. Equities Derivatives Trading 3. Currency Derivatives Trading 4. IPO Investment 5. Commodity Trading (Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE 6. Mutual Fund, Liquid funds, Bonds, FD's Investment, Structured Products, Wealth Management and Portfolio Management Services, Premium Research 7. Life & General Insurance 8. My Gold Plan, Gold ETF's, NRI Investment Services, QFI Investment Services

Reliance Securities Trading Platforms Reliance Securities provides different platforms for trading: 1. Easy Trade Easy Trade ia a browser based platform for first time investors. 2. Insta Plus Insta Plus is a web browser based trading system which helps you to directly place orders through market watch and helps to apply online in various products such as MF, FD, Bonds, IPO, OFS, AMO orders, Stop loss cover order, Systematic equity plans, etc. 3. Insta Xpress - Live streaming quotes InstaXpress is an EXE based, high speed trading tool that allows you to monitor what is happening in the market at real time speed. It provides an investor with Live streaming quotes & Research Calls, integrated fund transfer system along with multiple watch list facility. Investor can also do technical analysis with the help advance charting tools. 4. R Mobile Xpress (Mobile Trading) RMobile Xpress is a smart mobile trading application that allows you to be in touch with market anytime and anywhere during market hours at your finger tips.

Investors Approach Towards Health Insurance

What is Health Insurance?

The term health insurance (popularly known as Medical Insurance or Mediclaim) is a type of insurance that covers your medical expenses. A health insurance policy is a contract between an insurer and an individual /group in which the insurer agrees to provide specified health insurance cover at a particular premium. A health insurance policy is a contract between an insurer and an individual /group in which the insurer agrees to provide specified health insurance cover at a particular premium. The concept of health insurance is new in India but its awareness is growing fast. Health insurance comes in handy in case of severe emergencies. Life is unpredictable, insurance can make it safe and secure from bearing huge financial loss. A health insurance policy is a contract between an insurance company and an individual. Sometimes it is associated with covering disability and custodial needs. The contract is renewable annually. Health insurance is affordable and carries the assurance and freedom from insecurities that threaten normalcy now and then. The type and amount of health care costs that will be covered by the health plan are specified in advance. Health plans are available in two formats, individual and group plans. In an individual policy you are personally the owner of the policy. While in a group plan, the sponsor owns the policy and the people covered under it are called its members.

Why Health Insurance?

Even if you are usually in good health, you will need to use the health care system at some point in your life. You never know when an accident may happen or your family member will get sick and need to see a doctor. Buying health insurance protects us from the sudden, unexpected costs of hospitalization (or other covered health events, like critical illnesses) which would otherwise make a major dent into household savings or even lead to indebtedness. Each of us is exposed to various health hazards and a medical emergency can strike anyone of us without any prior warning. Healthcare is increasingly expensive, with technological advances, new procedures and more effective medicines that have also driven up the costs of healthcare. While these high treatment expenses may be beyond the reach of many, taking the security of health insurance is much more affordable.

BENEFITS: 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 fraction 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.

Types of Health Insurance

Health care costs have seen a phenomenal rise in the recent times. This has led the customers to insure not only themselves but their family members also. It will cover future medical expenses and other related requirements if it ever arises. The need to insure has gained more importance amongst older generation who is either retired or will retire in the near future. Let us discuss the types of medical insurances available in the market. Medical Insurance this is typically a hospitalization cover and reimbursement of the medical expenses incurred in respect of covered disease or surgery while the insured was admitted in the hospital as a patient. Different types of medical insurances are available in the market like individual medical insurance, group medical insurance and overseas medical insurance. There are health policies that reimburse you the actual hospitalization cost for treatment of any disease and are offered by the non-life insurers only. These policies are popularly called "Mediclaim" policies. Other types of health insurances are provided by both the life and non-life insurers. Critical Illness Insurance Critical Illness plan insures you against the risk of serious illnesses in return of a premium you are required to pay. This gives you the same security of knowing that a guaranteed cash sum will be paid if the unexpected happens and you are diagnosed with any one of the critical illness. Sometimes a critical illness can change your lifestyle in addition to help within the home or the family. In this type of health insurance plan, the insured receives a lump sum amount within a few days of diagnosing critical illness. Once this lump sum is paid, the plan ceases to remain in force. Typically, a critical illness plan would provide cover for the illnesses mentioned below.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Aorta graft surgery Cancer Coronary artery bypass surgery First heart attack Kidney failure Major organ transplant Multiple sclerosis Paralysis Primary pulmonary arterial hypertension Stroke

Objectives of the study: To study the various kind of health insurance facilities available in the market To know the perception of people toward health insurance To identify consumer expectations towards health insurance To find out the factors which convince investors not to the health insurance

Research methodology
The on-going section will discuss the research methodology adopted to arrive at and achieve the stated objectives of the research. The study followed the below mentioned research approach. There are two type of data collection 1. Primary data 2. Secondary data

In this research primary data was used. I used questionnaire method which is one of the popular as well as useful methods to collect primary information. Population for the study is the various investors in the market who are well aware of insurance schemes. SAMPLING PLAN The sample plan taken for the project was 50 in number and convenient sampling technique was used for collecting samples.

Literature review
Nishant Jain (2006), studied health insurance schemes are increasingly recognised as preferable mechanisms to finance health care provision. In the direction micro health insurance schemes and community based health insurance schemes are assuming significant importance in reaching large number of people. The objective of this paper is to analyse factors determining the demand for private health insurance in micro health insurance scheme setting. The data of study uses two stage models to examine this issue. First, we determine the factor which affects the health insurance purchase decision and second level we focus on studying which affect the amount of insurance purchase using Heckman two stage estimation procedures.

Ramesh bhat (2005), this paper studied that advent of third party administrators is expected to play an important role in health insurance market in ensuring better services to policyholders. Their presence is expected to address the cost and quality issues of the vast private healthcare providers in India. It describes the finding of a survey study, which was carried out with the objective to ascertain the experiences and challenges perceived by hospitals and policyholders in availing services of TAP in Gujarat, Ahmadabad.

Pooja kansra (2012), the economic status of a country is directly related to the health status of its people. Good health is one of the most important pre-requisite to human productivity which in turn leads to overall development of a society. Health is understood as the indispensable basis for defining a persons sense of well-being. It is an important resource for a nation to pursue national development goals. It raises the productivity of the labor force and enhances economic growth. It plays a critical role in supplementing government effort in ensuring the availability and accessibility of health care services to the population. The objective of the present paper is to know the awareness of health insurance and the factors affecting the demand for health insurance in Punjab. For the analysis of data descriptive statistics and factor analysis have been applied. The sample size is 200 residents of Jalandhar chosen according to convenience approach. The study highlighted that majority of the people aware of the health insurance, Only 11.5 % of the total sample has subscribed for health insurance scheme and five factors i.e. formalities bottlenecks, agent related problems, coverage issues, awareness, negative feedback are main barriers in the success of health insurance in Punjab.

Rajeev Ahuja (2004), Community based health insurance (CBHI) is more suited than alternatearrangements to providing health insurance to the low-income people living in developingcountries. The universal health insurance scheme, launched recently by thePrime Minister of India, is only one of the forms that CBHI can take. While analysing theproposed scheme, we examine alternate forms of CBHI schemes prevalent in the country.The development of private health insurance market in the country will not leave the poorunaffected. Insurance sector reform can affect the poor through its effect on the provision of health services (i.e., cost, quality and access) used by the low-income people as well asthrough its access to financing of health care. In this paper we also explore how insurancesector reforms alter health insurance prospects facing the poor in India, and what changeson the health front affecting the poor have happened or are likely to happen as a result ofinsurance sector reforms. We conclude that in diverse settings of India all forms of CBHI have a role to play and therefore need to be encouraged by the government throughappropriate interventions. Formal insurance providers can also be reined to serve lowincome population. At the same time, developments in formal health insurance marketneed to be guided so as to minimise cost escalation of health care provision.

ANALYSIS
1. Age group of respondents

From my sample of 50 respondents, 9 people are from age group of 20-25 years, 21 are from age group of 25-30 years, 11 are from age group of 30-35 years, 6 are from age group of 3540 and only 3 people from respondents are of age group of 40 years and above.

2. Gender of respondent

From no. of 50 respondents, 34 were males and only 16 were females.

3. Occupation of respondent

Out of 50 respondents, 12 people are whose occupation is profession, 11 people are whose occupation is businessman, 4 are students and 23 people are the one who are service man.

4. Do you know about health insurance?

From my sample of 50 respondents, all the respondents know about health insurance.

5. Do you have any health insurance?

Out of 50 respondents both male and female, 30 people are who have health insurance and remaining 20 people dont have health insurance.

6. Where did you buy your health insurance from?

Out of 30 respondents both male and female, 15 people are buying insurance from employer, 1 people is buying insurance from spouses employer, 7 people are buying health insurance from reference of friends or family and 7 people are buying health insurance from directly insurance company.

7. What is your current investment in your health insurance plan?

Out of 30 respondents both male and female, 4 people are whose current investment is less than 2000 Rs, 10 peoples are belongs to group of 2000-5000 Rs, 10 peoples are belongs to group of 5000-10000 Rs and 6 peoples are belongs to more than 10000Rs.

8. How often do you have to pay the health insurance premium?

Out of my 30 respondents majority has to pay insurance premium by year i.e. almost 86%and the rest has to pay monthly.

9. Which according to you is the most important aspect that every health insurance plan should cover?

Out of 30 respondents both male and female, according to 12 peoples hospital care is most important aspect in health insurance plan, acc. To 14 peoples routine care is important aspect and only 4 people prefer health specialist in health insurance plan.

10. Which of the following cost feature attracts you the most in a health insurance plan?

Out of 30 respondents both male and female, all the respondents prefer the low premium features.

11. According to you why people dont buy health insurance?

Out of 20 respondents both male and female, 2 respondents dont buy health insurance because lack of money, 1 respondent for lack of good advisors, 4 respondents for no returns, 12 respondents for lack of awareness and 1 respondent said because people are it.

Findings
When I collect data I came to know from that out of my respondents 100% know about health insurance Out of those 60% have health insurance and the rest do not have health insurance i.e.40%

From the data collection it is proved that most of the respondents are buying health insurance from their employers and no one is buying from insurance agents or through colleagues.

Those who have health insurance scheme in my respondents majority of respondents have their current investments in between 2000 to 5000 and 5000 to 10000 respectively

Among those who have health insurance scheme almost 86% of respondents pay their premium on yearly basis and the rest of them are paying on monthly basis. When I asked them what aspects do health insurance scheme has to cover mainly I came to know that hospital care, routine care and health specialists has to b covered more.

According to my respondents they .i.e.60% think that people are unaware about the health insurance scheme and its benefits that is why people do not go for health insurance. And some other respondents think that there is no returns in health insurance

Low cost premium is the best feature in health insurance scheme I guess because my 100% of respondents thinks so. Health insurance scheme has a good image over people because when I ask the questions regarding its misconception about claims nobody thinks there is a misconception in its claims and that is the reason behind people does not prefer health insurance.

RECOMMENDATIONS
There need to be a proper awareness program regarding health insurance People need to know the benefits and uses of health insurance programs

Insurance agencies has to work more effectively and efficiently so that they can make their clients buy insurance from them only Insurance scheme has to cover more or must focus on following factors ie especially .hospital care, routine care and health specialists There should be proper education programs, seminars and training classes for investors, brokers, students etc. Because lack of knowledge is the main reason of its less development. Thus in order to increase the awareness level educating people is must. Such of an initiative by ICICI direct financial learning center, Reliance LEAP, NSE certificate programs are very good initiative.

Conclusion
During my research I understood that most of us are not aware about the health insurance scheme its uses and benefits provided. Low cost premium attracts them most so much more innovative scheme in its premium can attracts them more recently the people who are becoming the part of health insurance schemes because they are educated and they know the uses and benefits and how it helpful for them. Hence health insurance is providing security moreover it covers Hospital care, Preventive care,Mental health,MaternityHealth specialists, Routine care etc. becomes major reason why people has to go for health insurance scheme i.e. there is no misconception regarding its claims people do not hesitate to prefer health insurance schemes. From this we can conclude that the importance of these health insurance schemes and the services provided by these co. are becoming the essential part of our daily life.

REFRENCES
wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2013/01/17/000158349_20 130117140241/Rendered/PDF/wps6324.pdf http://jms.nonolympictimes.org/Articles/Dec2012.pdf http://www.globalizationandhealth.com/content/pdf/1744-8603-8-32.pdf http://isdsnet.com/ijds-v1n2-5.pdf http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan048360.pdf

http://203.200.225.141/iimam/assets/snippets/workingpaperpdf/2006-07-02rbhat.pdf http://www.iimahd.ernet.in/publications/data/2005-01-02.pdf http://www.emeraldinsight.com/journals.htm?articleid=1616116

QUESTIONAIRE

Dear Respondent, I am student of MBA 2nd year. I am working on the project Investors Approach towards Health Insurance. Kindly spare a few minutes to fill this questionnaire.

Name Age

________ ___

Contact number ______________ Sex ____ Occupation __________

1) Do you know about health insurance? a) Yes 2) Do you have any health insurance? a) Yes 3) If NO, refer to question no.11

b) No

b) No

4) Please mention the name of your health insurance company

Name: _____________________

5) Where did you buy your health insurance from?

a) Employer c) Other employer e) Reference of colleagues g) Through insurance agent

b) Spouses employer d) Reference of friends or family f) directly from insurance company

6) What is your current investment in your health insurance plan?

a) Less than `2,000 annually c) `5,000 `10,000 annually b) `2,000 `5,000 annually d) More than `10,000 annually

7) Please mention the premium amount of the health insurance policy

_______________________

8) How often do you have to pay the health insurance premium?

a) Every month b) Every quarter c) Every year

9) Which according to you is the most important aspect that every health insurance plan should cover?
Hospital care Prescription drugs Preventive care Mental health Health specialists Routine care Maternity Choice of doctors

10) Which of the following cost feature attracts you the most in a health insurance plan?
a) Low premium b) Low Co-pay c) Low Deductible

11) According to you why people dont buy health insurance?

a)Lack of money c) No returns e) Because people are fit

b) lack of good advisors d) lack of awareness f) misconception about claims