PRESTIGE INSTITUTE OF MANAGEMENT AND

RESEARCH, INDORE (M.P.)

MRP Report On

A
comparative Study on service quality of Public & Private
Health Insurance companies

SESSION: 2015 -2017

Submitted to - : Submitted by- :

Prof. Umang Mehta Prem Kumar Raghuvanshi

MBA (FT)-B

4th SEM

1121208545

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Declaration
I hereby declare that the project report entitled A comparative Study on service quality of
Public & Private Health Insurance companies is submitted to the Prestige Institute of
management and Research, Indore is a record of original work done by me. Under the
guidance of Prof. Umang Mehta faculty of PIMR, Indore.

Date:-

Place: - Indore Prem Kumar Raghuvanshi

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Certificate
This is to certify that Prem Kumar Raghuvanshi, student of MBA (FT) has completed
MRP report on A comparative Study on service quality of Public & Private Health
Insurance companies This information submitted in this report is true and original work
done by me. Under the guidance of Prof. Umang Mehta faculty of PIMR, Indore.

Prof. Umang Mehta

PIMR, Indore

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Acknowledgement
The completion of this undertaking could not have been possible without the assistance and
participation of Prof. Umang Mehta, my Faculty Guide.

I would like to express their deep appreciation and indebtedness to Prof. Umang Mehta. For
his endless support, kind and understanding spirit during my project report.

Date: -

Place: - Indore Prem Kumar Raghuvanshi

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5|Page
INTRODUCTION:

Health insurance in a narrow sense would be an individual or group purchasing health care
coverage in advance by paying a fee called premium. In its broader sense, it would be any
arrangement that helps to defer, delay, reduce or altogether avoid payment for health care
incurred by individuals and households

Insurance is an arrangement by which the losses, incurred by a small number of insured are
divided over many exposed to same type of risks Health is Wealth and Good health of
population is the Wealth of Nation. Economists often think of available resources in terms
of their utilization costs and cost effectiveness. Human resource of a country has to be
analysed on the basis of these two concepts. Human resource in India is in abundance. What
lacks is Good health. This makes this (human) resource a burden rather than a productive
factor contributing to Indias growth and development. Each child born in a country is human
resource who will add to the productivity and prosperity of a nation.
Health insurance has always been a matter of concern and challenge in India. It is directly or
indirectly linked to financial and service industry. Health has always been of prime
importance and concern for everyone. Rising cost in health care and uncertain risk have made
health insurance utmost important. Health insurance is an emerging segment of Indian
insurance industry with vast potential. Health insurance is a state of complete physical,
mental and social well being and not merely the absence of disease or infirmity.

Good health is right of every person that ultimately leads to peace of mind of individual and
is held responsible for economic growth of the nation. Health is always a priority in India.
While India has made significant gains in terms of health indicators demographic,
infrastructural and epidemiological, it continues to struggle with newer challenges. The
country is now in the midst of a dual disease burden of communicable and Non-
communicable diseases. This is coupled with spiraling health costs, high financial burden on
the poor and erosion in their incomes.

According to the World Health Organization Report published in 2002, India ranked
thirteenth from the bottom in terms of public spending on health Health insurance in the form
of healthcare financing (Mediclaim) was introduced in India in 1986-1987 by four
subsidiaries of General Insurance Company (GIC) to support the ailing healthcare industry.
They are,

The New India Assurance Company,

Oriental Fire and Insurance Co.,

National Insurance Co.,

The United India Insurance Co

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 In recent years, there has been a liberalization of the Indian healthcare sector to allow for a
much-needed private insurance market to emerge. Due to liberalization and a growing middle
class with increased spending power, there has been an increase in the number of insurance
policies issued in the country. In 2001 with entry of various private Insurance companies are

Apollo Munich Health Insurance Company Limited.

Star Health and Allied insurance Co Ltd.
Future Generali India Insurance Company Ltd.
Bajaj Allianz General Insurance Co Ltd.
ICICI Lombard General Insurance Co.

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Review of Literature:-

Bapat B. Harish, Soni Vishal, Joshi ritu (2014)

In India after a monopoly of public sector life Insurance company for decades, the sector was
opened for the private players in order to bring consumerism in real sense. The healthy
competition among these companies has resulted in to better quality, customizations,
innovations, choice, value, and affordability of the product offerings. The current study
attempts to study the product offerings of largest public sector life insurance Company of
India Life Insurance Corporation of India and the private giant ICICI prudential life insurance
company Ltd on the aspects of applicability of SERVQUAL dimensions to current product
offering and to study and compare the perception of customers in terms of service quality.

Sharma Dhiraj, Pahuja Jyotsna (2015):

The study attempts to find out the prompted reasons for insurance customers that influence
them to buy a particular health insurance product. A comparative study based on 400
individual customers from public and private health insurance providers were evaluated and it
was found that the Brand Image, Agents persuasion, and Friends/family recommendation
play most influential role in prompting the customer to buy health insurance from a particular
company even if the price of the product was high.

Yadav Rajesh K. and Mohania Sarvesh (2014):

Health Insurance Portability is a regulation set by IRDA where an individual is allowed to

switch between insurers at their own choice without having to worry about their no claim
bonus and pre-existing diseases cover. The study aims to highlight the purpose of portability,
a system that allows the policyholder to move the policy from one insurance company to
another, in case of dissatisfaction with respect to the existing policy or the services or to
switch over to an innovative/ another product, which could be available elsewhere in health
insurance services. The Indian health insurance market share is a mix of mandatory Social
Health Insurance (SHI), voluntary private health insurance, and Community- Based Health
Insurance (CBHI). Health insurance is really a small player in the Indian health ecosystem

Kumar Sushil (2013):

His study said that the marketers in health insurance industry need to understand the major
barriers in health insurance industry and try to adopt societal marketing philosophy along
with holistic vision as it will go a long way in brand building apart from assured success in
penetration. The companies should motivate their sales force.

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Bhat Ramesh, Jain Nishant (2006):

His research said that the insurance sector in India was liberalized with the opening up of
health insurance to private players. The need and health financing situation in India it was
expected that health insurance will emerge as significant component of the non life insurance
sector and experience a significant growth because of the huge potential of the market
coupled with the new products and efficiency which the private players will bring.

RATIONALE OF THE STUDY

Since there is not much work has been done under the area of health insurance sector. As the
health insurance sector is growing, this study will help us to know the gap between customer
expectation and service delivery.

OBJECTIVES OF THE STUDY

1. To compare the perception of customers for the public and private health insurance
companies in terms of service quality.

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 METHODOLOGY

The study:
This study is based on public sector and private sector health insurance. This study
will find out service quality toward public and private sector health insurance
companies.

The Sample
In this study, questionnaire forms will be filled by 100 respondents.

Tool for Data Collection

Data will be collected through primary sources. Primary source will include
questionnaire forms.

Tool for Data Analysis

Data will be analysis with the help of appropriate statistical tools.

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Group Statistics

Q1 N Mean Std. Deviation Std. Error Mean

Q4 Public Company 58 3.4828 1.28748 .16905

Private Company 42 3.7381 1.23089 .18993

Q5 Public Company 58 3.4828 1.20294 .15795

Private Company 42 3.4762 1.36575 .21074

Q6 Public Company 58 3.5172 1.15836 .15210

Private Company 42 3.7143 1.08843 .16795

Q7 Public Company 58 3.5862 1.10873 .14558

Private Company 42 3.6429 1.14384 .17650

Q8 Public Company 58 3.6207 1.13675 .14926

Private Company 42 3.7143 1.08843 .16795

Q9 Public Company 58 3.8448 1.05634 .13870

Private Company 42 3.5714 1.12927 .17425

Q10 Public Company 57 2.2105 1.12974 .14964

Private Company 42 2.2143 .92488 .14271

Q11 Public Company 58 2.1207 .97473 .12799

Private Company 42 2.1429 1.04931 .16191

Q12 Public Company 58 2.3103 1.07942 .14174

Private Company 42 2.0476 1.01097 .15600

Q13 Public Company 58 3.6897 1.02951 .13518

Private Company 42 3.8095 1.06469 .16429

Q14 Public Company 57 3.6667 .95119 .12599

Private Company 41 3.8780 .87164 .13613

Q15 Public Company 58 3.5172 1.11200 .14601

Private Company 42 3.7857 .92488 .14271

Q16 Public Company 58 3.9655 .91700 .12041

Private Company 42 3.7619 1.10010 .16975

Q17 Public Company 58 3.6552 1.19284 .15663

Private Company 42 3.8095 1.10956 .17121

Q18 Public Company 58 3.9138 1.04771 .13757

Private Company 42 3.7143 1.04264 .16088

Q19 Public Company 58 3.7069 1.10832 .14553

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 Private Company 42 3.8333 1.05730 .16315

Q20 Public Company 58 3.8103 .92636 .12164

Private Company 42 3.8571 1.20104 .18533

Q21 Public Company 58 3.7586 .97891 .12854

Private Company 42 3.9048 1.10010 .16975

Q22 Public Company 58 3.6379 1.15011 .15102

Private Company 42 3.8810 1.10878 .17109

Q23 Public Company 58 3.5517 1.01173 .13285

Private Company 42 3.6905 1.15796 .17868

Q24 Public Company 58 3.8103 1.06716 .14013

Private Company 42 3.9524 .98655 .15223

Q25 Public Company 58 3.7241 1.12067 .14715

Private Company 42 3.7143 1.06578 .16445

Q.1. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to effectively delivered. Thus the
null hypothesis is accepted.

Q.2. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to advertisement influences.
Thus the null hypothesis is accepted.

Q.3. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to Employees are well-
dressed.Thus the null hypothesis is accepted.

Q.4. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to affordable. Thus the null
hypothesis is accepted.

Q.5. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to time duration. Thus the null
hypothesis is accepted.

Q.6. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to Satisfied. Thus the null
hypothesis is accepted.

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Q.7. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to additional cost on additional
services. Thus the null hypothesis is accepted.

Q.8. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to promised date and coordinates
well. Thus the null hypothesis is accepted

Q.9. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to Employees support to
respective clients. Thus the null hypothesis is accepted

Q.10.There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to use of upgraded technology.
Thus the null hypothesis is accepted

Q.11. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to loan facility. Thus the null
hypothesis is accepted

Q.12. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to claim settlement within a
limited period.. Thus the null hypothesis is accepted

Q.13. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to employees response to queries
are effective. Thus the null hypothesis is accepted

Q.14. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to employees are trustworthy in
nature. Thus the null hypothesis is accepted

Q.15. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to you feel safe when transacting
with employees of the health insurance company. Thus the null hypothesis is accepted

Q.16. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to claim settled with limited
terms and conditions. Thus the null hypothesis is accepted

Q.17. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to health insurance company
necessarily have to operate at hours convenient to all customers. Thus the null hypothesis is
accepted

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Q.18. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to employees of health insurance
companies do not know what your needs are. Thus the null hypothesis is accepted

Q.19. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to health insurance companies
does not have operating hours convenient to all customers.Thus the null hypothesis is
accepted

Q.20. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to employees of health insurance
companies do not give you personal attention.Thus the null hypothesis is accepted

Q.21. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to health insurance company
keeps its records accurately. Thus the null hypothesis is accepted

Q.22. There is a significant difference in the service quality levels of males and females for
public and private health insurance companies, with respect to employees of health insurance
companies are too busy to respond to customer requests promptly. Thus the null hypothesis is
accepted

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 QUESTIONNAIRE
I am conducting a survey which is based on a comparative study on service quality of public &
private health insurance companies. I would be thankful to you if you could spare some of your
valuable time and respond with the following statements. The information provided by you will be
confidential and will be used for academic purpose only.

Name: - ____________

Gender: - a) Male b) Female

Age:-

a) 20- 30 years
b) 30-40 years
c) 40-50 years
d) Above 50 years

Marital status: - a) Single b) Married

Type of family: - a) Joint b) Nuclear

Occupation: -

a) Salaried
b) Business
c) Student
d) Others

Income per annum (in Rs.):

a) 0-400000
b) 400000-800000
c) 800000-1200000
d) Above 1200000

Q1. Which company do you prefer for purchasing Health Insurance Plan?
a) Public Company
b) Private company

Q2. Who persuaded you to purchase the policy?

a) Insurance officials

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 b) Relatives and friends

Q3. What type of Health Insurance Policy do you have?

a) Individual Health Insurance
b) Family Floater Health insurance

Please rate the following questions on your experience on service quality of health insurance
companies.

(5- Strongly Agree, 4- Agree, 3- Neutral, 2- Disagree, 1- Strongly Disagree)

Statements SA A N D SD
1 The services provided by the health insurance companies
are effectively delivered.
2 Advertisement influences you to buy health insurance
policy.
3 Employees of the health insurance company are well-
dressed.
4

Health insurance costs consider the most important in

choosing your health insurance policy.
5 Health insurance company provides its services at the time
it promises to do so.
6 Satisfied with the performance of the health insurance
policy that you are currently having.
7 Additional cost on additional services can affect to buy
your health insurance packages.
8 Health insurance company provides services on promised
date and coordinates well.
9 Employees get adequate support from the company to
provide any services to their respective clients.
10 Use of upgraded technology by health insurance
companies
11 Availability of loan facility to meet all associated cost of
the health insurance.
12 Claim settlement within a limited period.
13 Employees are polite with the customers and do response
to queries are effective.
14 Employees of medical insurance company are trustworthy
in nature.
15 You feel safe when transacting with employees of the
health insurance company.
16 Claim settled with limited terms and conditions.
17 Health insurance company necessarily have to operate at
hours convenient to all customers.

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18. Employees of health insurance companies do not know
what your needs are.
19 Health insurance companies does not have operating hours
convenient to all customers
20 Employees of health insurance companies do not give you
personal attention.
21 Health insurance company keeps its records accurately.
22 Employees of health insurance companies are too busy to
respond to customer requests promptly.

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