III BBA Star Health Insurance Project

CONTENT
CHAPTER PARTICULARS PAGE NO

NO
LIST OF TABLES
LIST OF CHARTS
I.
INTRODUCTION
II.
ABOUT INSURANCE
III. REVIW OF LITERATURE

COMPANY PROFILE
IV.
DATA ANALYSIS AND INTERPRETATION
V. FINDINGS
SUGGESTIONS
CONCLUSION
VI.
BIBLIOGRAPHY
VII. ANNEXURE QUESTIONNARIE
1
LIST OF TABLES
S. NO TABLE TITLE PAGE NO

NO
01. CLASSIFICATION ACCORDING TO GENDER
4.1
02. CLASSIFICATION ACCORDING TO AGE
4.2
03. CLASSIFICATION ACCORDING TO

EDUCATIONAL QUALIFICATION
4.3

MATERIAL STATUS
4.4

OCCUPATION LEVEL
4.5
06. CLASSIFICATION ACCORDING TO FAMILY

TYPE
4.6
07. CLASSIFICATION ACCORDING TO INCOME

PER MONTH
4.7
08. CLASSIFICATION ACCORDING TO HEALTH

INSURANCE POLICY
4.8
2
S. NO TABLE TITLE PAGE NO
NO
09.
4.9 CLASSIFICATION ACCORDING TO INSURER
10.
4.10 CLASSIFICATION ACCORDING TO
PRIVATE COMPANY
11.
4.11 CLASSIFICATION ACCORDING TO
SOURE OF INFORMTION
12.
4.12 CLASSIFICATION ACCORDING TOTYPE OF

HEALTH INSURANCE POLICY

PERSUADED YOU TO PURCHASE THE POLICY
4.13
3
14. 4.14 CLASSIFICATION ACCORDING TO SEEKING
HEALTH INSURANCE COVERAGE
15. 4.15 CLASSIFICATION ACCORDING TO

SERVICES PROVIDED BY THE INSURANCE
COMPANIED ARE DELIVERED
EFFECTIVELY
16. 4.16 CLASSIFICATION ACCORDING TOTHE

PROMOTIONAL EFFORTS BEING TAKEN
BY INSURANCE COMPANY ARE
SUFFICIENT
17. 4.17 CLASSIFICATION ACCORDING

TOAWARENESS OF HEALTH INSURANCE CAN
BE INCREASED
18. 4.18 CLASSIFICATION ACCORDING TO POLICY

HAS COVERED ALL FAMILY MEMBERS
19. 4.19 CLASSIFICATION ACCORDING TO ANNUAL

PREMIUM
20. 4.20 CLASSIFICATION ACCORDING TO COVERAGE

(SI) SUM INSURED
21. 4.21 CLASSIFICATION ACCORDING TO FREE

HEALTH CHECK-UP
4
22. 4.22 CLASSIFICATION ACCORDING TOSERVICES
OFFERED BY THE STAR HEALTH INSURANCE
23. 4.23 CLASSIFICATION ACCORDING TOCHOSEN

THE PRODUCT OF STAR HEALTH INSURANCE
24. 4.24 CLASSIFICATION ACCORDING TOSURVEYOR

REACH

SATISFACTION OF PREMIUM AMOUNT

SATISFACTION OFCLAIM SETTLEMENT

SATISFACTION OF OFFER

SATISFACTION OFDISCOUNT

SATISFACTION OFTIME TAKEN FOR
SETTLEMENT OF CLAIM
5
CHAPTER – 1
6
CHAPTER - 1
INTORDUCTION
TITLE OF THE STUDY
“CONSUMER AWARENESS TOWARD “STAR HEALTH INSURANCE” It
draws together concepts, principles, customs need and preferences of customers.
1.1 INTRODUCTION:
MARKET
A market is one of the many varieties of systems, institutions, procedures, social relations
and infrastructures whereby parties engage in exchange. While parties may exchange goods
and services by barter, most markets rely on sellers offering their goods or services
(including labor) in exchange for money from buyers
Definition of marketing:
Marketing is a buyer-oriented process involving the creation, communication, and delivery of

value even as it strives to build and retain lifetime customer loyalty.
There are various standard definitions of marketing. While the words used may be different,
it is obvious that all marketing activity is about the customer, focused at acquiring them and
retaining them.
Marketing is a business function and set of processes involved in creating, delivering and
communicating value to customers, followed by managing customer relationships, resulting
in mutual benefit for the business and its stakeholders.
Marketing is also the science of selecting target markets via market analysis and
segmentation, with a comprehensive knowledge of buying behaviour, aiming to provide the
best customer value.
However, marketing is successful only when an organization’s mission, vision,

tasks and ability to leverage technology align with and complement each other,
and the business as a whole.
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Although marketing viewed as an indicator of a firm’s success, it is a matter of
perspective.
For example, brands like Toyota, Nissan and Nestle must rely on marketing to grow
and keep their customer base. For regulated industries like utilities and medical care and
small businesses with unique products, marketing may be low key and confined to flyers.
The marketing concept is the philosophy that firms should analyze the needs of their
customers and then make decisions to satisfy those needs, better than the competition. Today
most firms have adopted the marketing concept, but this has not always been the case
 Basic Marketing Concept – Getting the competitive edge
Marketing provides businesses with a competitive edge, since that is what

they need to do, to gain loyal customers.
Businesses achieve this by convincing potential customers that their product is

the nearest thing that satisfies their needs and wants and do it consistently, with
the result that the loyal customer starts buying from them without looking at the
competition.
This is what all businesses dream of and achieving this is possible only with a
solid marketing plan in place.
With the advent of the internet, there are several marketing channels available
to businesses, besides traditional marketing. All of them focus on engaging the
customer.
8
 Types of Marketing
Traditional marketing involves offline channels such as face-to-face selling, print

advertisements, direct mails, billboards, television and radio to grab the target market’s
attention.
Digital marketing uses the internet to reach its markets via websites, social media, video
sites, emails, mobile phones and apps and forums.
Social media marketing is a popular medium for businesses to connect with and engage
their audiences and is an effective brand builder and market research tool. This works best
when used in conjunction with other marketing strategies.
Mobile marketing Considered the third screen, mobile is one of the main marketing
channels today, what with consumers getting their information on the go.No matter what
route the marketer decides to take, two or more of the above will inevitably overlap to offer
customers the best marketing experience since the goal is to reach customers where they are
rather than wait for them to approach the business
The first step in this process is establishing a marketing philosophy in place, where the
business must perform a customer needs analysis to find ways to meet these needs.
It is important to remember that markets are dynamic, and keep changing.The concept of
marketing has also evolved to keep pace with the needs of the market.
 Evolution of Marketing Concepts
Here is a brief overview of the evolution of marketing concepts.
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a) Production concept – an operations-based concept where the consumer expects
products that are easily available and affordable. Here the business focuses on
production efficiency, lowering costs and mass distribution. This concept works in
developing economies where the need is more for the product than the features it
offers.
b) Product concept – a consumer oriented concept where consumers expect products
that are superior, high-performance and with unique features. This concept assumes
that customers are likelier to be loyal when the product meets all their expectations
and so, the business strives to offer innovative products consistently.
c) Selling concept– where the business believes that its products will sell only through
active promotion and selling and the customer will not respond until pushed. In short,
it is a matter of the business trying to sell what it makes rather than make products to
meet the market’s needs.
d) Marketing concept – This concept is radical, compared to the above and focuses on
the target market, its needs and wants and a desire to be better than the competition
while delivering value to its market. Unlike the earlier concepts that rely on push
marketing, it believes in pull marketing by creating brand loyalty.
e) While the sales concept is seller-oriented, the marketing concept is buyer-oriented.
f) A fifth concept has evolved today, the societal marketing concept – is the ideal
situation where, along with the focus on the target market’s wants and needs and
delivering better value than its competition, the business also strives to preserve the
well-being of its target market and the society as a whole. This takes into
consideration environmental and natural resource preservation and minimizing the
carbon footprint .
 Marketing vs. Selling
We often use the terms marketing and selling synonymously. However, it is important to
understand the differences between marketing and selling, for any marketing plan to be
successful.
10
Simply stated, selling is product/seller-oriented and aims at market share and profit
maximization. The business assumes that consumers are waiting for its products and once
production is over, the sales force must sell everything using aggressive sales methods.
In contrast, the marketing approach is buyer-oriented. It encompasses a broader range of

activities that include the entire process of:
 Market research to uncover customer needs,

 Product planning and development –to make products that meet and satisfy customer
needs.
 Packaging, advertising and promotion – to create awareness and for brand-building
 Pricing and distribution –for long term revenue generation
In short, although the aim of marketing and sales is to increase revenue, marketing aims at
creating value for the customer and sees the customer as the reason for its existence. This
calls for a marketing plan based on the specific needs of the business.
 The Marketing Plan:
The marketing plan is the blueprint for the firm’s success and will include:
 An executive summary to highlight what the marketing plan hopes to achieve with
strategies it plans to use, budget requirements and a system for measuring results.
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 An overview of the business with a description of its services and products and their
USPs. This includes indirect and direct competition analysis, SWOT analysis describing
product/service mix, pricing, location and positioning.
 Target market identification, potential customers and marketing territory with customer
demographics and all relevant information, market segmentation to enable the business
customize its marketing strategy,
 Marketing goals including sales and market share anticipated for the next three years.
 Marketing strategies for product/service mix, pricing, promotion, location and

positioning.
 Action plan for implementation of each marketing strategy with detailed descriptions,
timelines and identifying those accountable for achieving them.
 Budget and sales forecasts with expense budget for task implementation with sales
forecast figures expected from the marketing plan with rationale.
 Monitoring and evaluation of results with criteria for success of the marketing plan and
how its success will be measured to identify what is working so that changes can be
made to meet desired goals.
 Any other information relevant to the marketing plan.
Of course, marketing plans are far more detailed than this bare outline and are structured
taking into account their impact on the business, the risks involved and other specific aspects
of the business.
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Consumer Behaviour
Definition:
Consumer behavior refers to the psychological process that leads to a consumer’s

decision to buy a product or service offering.
This process involves decisions in terms of what, when, where, how and from which vendor
to make the purchase. This is influenced by:
 Psychological factors such as the personal thinking process that includes motivation,
personality, perception and the consumer’s attitude, the process of making the decision
in marketing, consumer’s interaction with friends, family and peers and making the
choice of where to buy from, based on cost, features and product appeal
 Internal factors such as demographics, lifestyle, personality, motivation, information,

beliefs and attitude
 External factors such as reference groups, culture, family, race, social status, marketing
mix
Studying consumers enables businesses to create the most appropriate marketing strategies
for their target audience.
It allows them to understand issues including how consumers think and rationalize before
they select a product from the choices available, what influences them, their behaviour when
they shop and gaps that exist in information available with consumer.
This presents them with the knowledge required to create marketing campaigns that elicit the
desired response from the consumer.
Consumer behaviour, besides its application in marketing strategy, is also used in social
marketing to connect with the customer.
There are several classical theories that view consumer behaviour from various points of
views. This helps to understand different market segments based on which marketing
strategies are created to
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SIMPLE MODEL OF CONSUMER BEHAVIOUR
capture those markets.
FEEDBACK TO CONSUMER
Post Purchase Evaluation
The Individual
Consumer
Consumer Decision
Consumer
Making
Response
Environment
Influences
FEEDBACK TO ENVIRONMENT
Development of Marketing Strategies
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 Consumer behaviour theory
Broadly, these can be classified as:
a) Economic theories
b) Psychological theories
c) Psycho-analytical theories
d) Socio cultural theories
a)Economic Theories
Consumer behaviour seeks to explain how a consumer distributes her income across various
purchases and how pricing is a deciding factor. There are two theories here:
 Utility theory of Demand that deals with consumer satisfaction with the acquisition of a
product. Introduced by British Economist William Stanley Jevons in 1870, it describes
utility as the satisfaction or benefit that comes from consumption and assumed that this
can be quantified and measured in “utils”. Utility theory of demand gives rise to the Law
of Diminishing Marginal Utility which states that as the consumption of a product
increases, the satisfaction declines.
 Indifference preference theory – developed by economist Wilfred Pareto, this is a more

modern approach to consumer behaviour. Here, consumer behaviour analysis relates to
consumer preferences of a combination of goods and services based on the nature of the
goods and not from the ability to measure satisfaction.
Psychological Law of Consumption:
Postulated by Keynes, the Psychological Law of Consumption states that when

income increases, consumption also increases, but not in proportion to the increase in income.
This theory focuses on the fact that consumption relies on income and that there is a tendency
to spend less on goods than the increment in income.
15
This theory is criticized on the grounds that there are many factors influencing consumer
behavior that do not related to income.
b) Psychological theories
This believes that people learn from their experience and this will determine how they
act in future. This makes sense when seen in conjunction with brand loyalty and repetitive
buying. Psychological theories consist of stimulus response theories and cognitive theories.
Stimulus response theory assumes that learning is a result of a person’s response to a

stimulus, which is then rewarded with satisfaction for the right response. People tend to
remember the most frequent and recently experienced stimuli and respond to it.
Advertisements take advantage of this.
The cognitive theory deals with post-buying behaviour and states that stimulation and want
are influenced by the consumer’s awareness, beliefs, perception and attitude.
It assumes that even after making an informed purchase decision, consumers face anxiety,
wondering whether they made the right choice as they compare other alternatives. These
buyers need to be reassured by the seller that they took the right decision .
c) Psycho-analytic theories
Under this theory, Freud gives personality three aspects: the id, the ego and super ego and
states that consumer behaviour is a result of the interaction between these three.
While the “id” triggers pleasure, the super ego sees the moral issues and the ego
is the go-between, helping the consumer decide whether to buy or not.
d) Socio cultural theories
Also called the veblenian model, it labels man as a social animal whose wants and behaviour
are shaped by his peer group. Regardless of personal preferences, people tend to blend in a
society.
16
These theories on consumer behaviour help to marketers gain an insight into what factors
lead their target audience to make their buying decisions so that they can develop their
marketing message accordingly.
 Factors affecting consumer behaviour
As a consumer goes through the process of choosing, buying and consuming goods and
services based on wants, various factors influence the decision making process.
These are:
 Cultural
 Personal
 Psychological
17
Factors affecting consumer behaviour
1.Cultural factors
Culture
Sub-culture
Social class
2.Social factors
Reference Groups
Family
Role and Status
3.Personal factors 4.Psychological factors

Age and Life Cycle Stage Motivation The
Occupation Perception
Buyer
Economic Circumstances Learning
Lifestyle and Personality Beliefs and Attitudes
18
Cultural factors:
These include culture, subculture and social class. Since the buyer is part of a society, her
decisions are affected by it. Global marketers must study the culture of various regions to
understand what influences buyers in these markets.
Subculture refers to religion, nationality, region, race, and similar factors that facilitate
market segmentation, so that products can be tailored to these segments. Social class or
status, which is identified by income levels, education and occupation, also plays a role in
consumer behaviour.
Social factors that impact buying behaviour are reference groups, family, role and status.
Reference groups, often including an opinion leader have a strong influence on buying
decisions.
The decision maker in the family has an important role in the buying process. Buying
decisions also depend on the consumer’s role and status.
Personal factors:
Among personal factors that determine buying behaviour are economic level, lifestyle, age
group, personality, occupation and self-concept. Since each person is unique, personality
varies and plays a role in the buying process.
Psychological Factors:
Four psychological factors, namely perception, motivation, learning, attitude and beliefs
affect buyer behaviour.
Each individual is motivated by a different set of physiological, biological and social needs.
While some needs are urgent, some are not. When the need is urgent, it becomes a motive.
Perception involves choosing, organizing and assimilating information for a meaningful

experience. Consumers go through three perceptual processes. These are:
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 selective attention – where marketers attract the buyer’s attention
 selective distortion – where the buyer interpret the information to suit their beliefs
 selective retention – where marketers try to retain information that supports their
beliefs
Beliefs and Attitudes surround a consumer’s view of a product and also build the brand
image, thereby affecting their buying behaviour. This triggers a marketer’s interest in them.
By introducing specially tailored campaigns, marketers attempt to change consumers’ attitude

and belief.
Consumer Behaviour Case Study
In an example of finely targeted marketing, Nike, the marketing giant makes use of
the data streaming in from its Nike+ system to study consumer behaviour, tailor products and
manage its brand strategy.
When Nike+ users used trails rather than paved roads for running, Nike’s trail-running
product range was expanded. Its latest product is fuel band data that is being offered to
marketing companies.
Consumers wearing this present Nike and its partners with enough information to strategize
their marketing. As for Nike, it even knows exactly when a consumer needs a new pair of
trainers.
Another example of perfectly targeted marketing based on consumer behaviour is from fast
food chain Taco Bell, who leverages consumer data and has the reputation of not having a
single product launch failure in 15 years.
Voted Marketer of the Year, Taco Bell uses its social command centre which receives 18+
million online messages to forecast the success of its new product launches accurately.
(Reference link)
As consumers become savvier, they only respond to the right messages delivered in a timely
manner. For marketers to be customer-centric, they must collect and analyze the information
available to manage customer expectations.
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Today, marketing has changed to the extent where it has moved from getting to know the
average consumer’s behaviour to focusing on individual customers.
Marketing Strategy
Definition of Marketing Strategy:
A marketing strategy helps a business identify various ways to communicate with its
audience and focus on the most effective methods to achieve its marketing goals.
For example, if the business aims to increase its customer base by 10%, its marketing strategy
would involve planning, market research and arriving at a marketing mix that helps to
achieve this goal. A marketing strategy helps a business determine what to say, whom to say
it to, how to say it and when.
The marketing mix is a good starting point for a marketing strategy and plan as it helps define
the marketing elements that go into positioning the product or service.
The Marketing Mix | 4 Ps of Marketing:
The marketing mix consists of the 4 Ps of marketing: Product, Place, Price and
Promotion. The business can directly control these variables.
PRODUCT
4’Ps
PLACE
Of Marketing
PRICE
PROMOTION
21
The 4 Ps, along with target market selection, form the foundation of the marketing
strategy and can be leveraged in combination to cater to customer needs. Knowledge of the
target market, the needs of potential prospects and competition analysis enables a business to
create its marketing mix based on its own competitive advantage.
Clearly, a marketing strategy is a continuous process that creates consistent value and
comprises of the following elements:
Marketing segmentation:
As the first step in creating a market strategy, market segmentation involves analyzing
the market and grouping it into smaller sections.
After segmenting the market the one that is most suitable for the company’s products in
relation to its strengths and competitive advantages is chosen.
Take the hotel industry, for example. A hotel chain would target its budget hotels in a tourist
location towards the leisure traveler while its business hotels would be aimed at the frequent
business traveler.
Its premium properties would be marketed to top level executives. Market segmentation
makes it possible to manage the market in a more focused manner and create an appropriate
marketing strategy for each segment. This enables the business to make better use of its
funds.
Marketing strategy:
Just as a construction project begins with a blueprint, building a profitable business

requires a strong marketing strategy based on a well thought out marketing plan.
This lets the business channel its activities in such a way that they are consistent with
business goals and maximize its return on investment.
22
Market research and competition analysis:
Businesses do not operate in isolation. They exist in a competitive market and must
keep abreast of industry trends and stay a step ahead of the competition.
Market research is critical for a business to make informed decisions. Since marketing
involves directing resources and activities geared to satisfy customer needs, market research
helps identify those needs and find ways to create the ideal marketing message.
It also helps in modifying and keeping track of various elements in the marketing strategy.
Thus, market research helps understand the competition and leverage that knowledge to
improve the business.
Pricing:
Selling a product at a specific price involves the creation of value, which is the
customer’s perception of the product’s ability to meet her needs.
Consumers are intelligent and select the product that satisfies them. Often pricing is the value
a customer places on a service or product.
There is a strong relationship between price and quality where a higher priced product is
perceived to be of higher quality. This usually happens with services.
Marketers frequently enter the market with a higher price and as demand decreases, lower the
price. This pricing strategy is generally used while introducing unique new products. When
competition heats up, prices begin to fall and stabilize at the market rates.
Some marketers use a price penetration strategy where they enter the market with a low
price to capture the market share.
In either case, pricing is a powerful marketing strategy that bears in mind the business’s
resources. Very low prices can result in losses while high pricing can killthe demand and
sales.
23
Placement:
For a customer to buy a product, it must be easily available. Placement or distribution

facilitates the buying process.
The business must have the logistics in place to connect the customer with its products and
services as accessibility determines the sales of the product.
Value chain:
The marketing mix, segmentation, strategy, research and competition analysis, pricing and
placement together form a value chain that contributes to the marketing plan’s effectiveness.
It encompasses a range of activities starting with the acquisition of raw materials, managing
the product creation process, distribution and logistics, marketing and sales, customer service
and human resource management.
“While marketing goals reveal a business’s intentions, marketing strategy provides the
roadmap for achieving these goals”.
Types of marketing strategies:
 According to Michael Porter, marketing strategies can be divided into overall cost
leadership, differentiation and focus.
 With overall cost leadership, the business focuses on minimizing production and
distribution costs and sells at a price lower than the competition to increase its market
share. This strategy, however, has it flaws as another competitor might enter with an
even lower price. This can be detrimental to the business if its marketing strategy is
based on cost leadership.
 Differentiation, where the business seeks to excel in a specific aspect such as superior
service or technology that directly benefits the customer.
 Focus, where the business concentrates on a particular market segment or niche and
specializes in catering to their needs.
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Another emerging marketing strategy today is the ‘go to market’ strategy.
Go to market strategy:
A go-to-market strategy (or GTM strategy, in short) is a plan of action that details how the
business will reach its customers and gain a competitive advantage.
The goal of this strategy is to create a blueprint to deliver its products and value proposition
to the customer, keeping in view various criteria such as pricing and distribution.
Usually used in product launches, GTM also explains the strategies required to steer customer
interactions for existing products.
GTM strategy starts with the target market definition for a specific product or service. For
new product launches, the business analyses its existing market to gauge whether it is
prospective or whether it must explore new markets.
It also identifies its buyer profile and the benefits they receive from the new product or
service. Once this value proposition is determined, a pricing strategy is worked out followed
by marketing and promotional strategies to reach the target market.
GTM is used as a long-term strategy to reinforce a business’s position in the market, revenue
growth, cost reduction and enhance customer experience.
With the growth of the World Wide Web, more and more businesses are adopting online
marketing strategies to leverage the internet to reach wider markets, increase their ROI and
achieve measurable results.
Digital / online marketing strategies:
As consumers spend more time online and seek information on the internet,
companies are realizing the value of including digital marketing as part of their marketing
mix.
25
Some of the most popular online marketing strategies used by businesses to build their brands
and attract newer markets are:
 Affiliate marketing where businesses promote their products via affiliates and pay
them a commission on sales
 Email marketing, similar to direct mailing where information and marketing messages
are sent via email
 Display advertising where banners and advertisements are placed on other websites.
 Inbound marketing using content marketing in the form of blogs, social media updates
and podcasts to gain customers
 Pay per click advertising or search engine marketing where advertisements are placed
on search engines websites such as Google, Yahoo and Bing
1. Search Engine Optimization where the business attracts its target market by using the
same keywords and phrases used by themto appear at the top of the search engine
results.
2. Social Media Marketing where the business promotes itself via social media platforms
such as Face book, Twitter, Google Plus and Interest. The business creates profiles on
each of these sites to attract followers and convert them into buyers.
26
CHAPTER- III
RESEARCH METHODOLOGY
1.2 STATEMENT OF THE PROBLEM

Insurance sector is a booming sector and the penetration in India is quiet low. So, all
the private players are trying to increase the market share in the public. This study also
involves creating awareness among the urban and rural student about the insurance sector and
also the various policies involving various premium rates. Since the penetration of private
companies and policies is low among the student, it is necessary to create awareness about
life insurance policies and to know the satisfaction level among student. Hence the present
studies entitled awareness about it among the student.
The problem for the study is the many of the student not aware about the insurance
and some of the get the aware about health insurance but not detail information for the
insurance.
The awareness of the insurance to peoples for very low and there is no advertisement
about the insurance for rural areas and The student for misunderstand about the health
insurance and peoples for not understand the importance of the insurance.
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1.3. SCOPE OF THE STUDY
Indian Insurance sector is a little over a decade old but with huge growth
potential, it is growing rapidly. At present, there is only a handful of people in India that are
under health cover but it is expected to increase by six times by 2015,because of increase in
income level and change in lifestyle. It has been noticed that innovation coupled with variety,
value and choice are some of the parameters driving Indian health Insurance.
The scope of health insurance is high with abundance of healthcare solutions provided
by the private sector. Student awareness in insurance sector because of better quality of care
and more number of insurance benefits and facilities. With all kinds of insurance policies
available, it allows all. Health insurance. General insurance life insurance. And Insurance
policies are available.
There are many insurance options, each of which has its own advantages and
disadvantages. As per the research and student survey, life insurance is performing the best
with respect to quality of services and its penetration into market so benefits as and when
required in life.
This section deals with description of methodology and the steps undertaken for
collection and organization of data and pressing the findings of investigation. The
methodology of research individual the general pattern of organizing procedure for gathering
valid and reliable data for the purpose of investigation.
The methodology of the study includes the description of research design,
population, sampling size, sampling technique development and description of tool data
collection procedure and method analysis.
The following are the sources of data for the study:

a) Primary sources
b) Secondary sources
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a) Primary sources:
The original sources from which the research directly collects data that have been
previously collected. The first-hand information collected through various methods is
explained under:
 Personal interviews
 Questionnaire
Interview method: Officers of the marketing department and other department concerned
with the promotion activities of the organization were interviewed to obtain first-hand
information.
Questionnaire method: This questionnaire consists of question for consumers which
includes multiple choice questions, in order to get first-hand information directly from the
end users.
b) Secondary sources:
Refers to the existing available sources of information such as:
 Documents of the departments concerned
 Reference books
 Internet
.
Geographical Coverage
No work can be undertaken without cooperation of respondents who were
interviewed from which data was collected through questionnaire. Therefore, respondents
play a very important role in this type study. The study conducted in Namakkal district. By
areas from which data was collected and respondent’s approaches
RESEARCH APPROACH
Research design refers to the researchers over plan for obtaining answer to the
research question and the strategies that researchers adopt to develop information that is
adequate, accurate, objective and interpretable. Research design is blue print design study
that maximizes the control over factor that could interpret with the study desire outcome
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1.5. STATISTICAL TOOL USED FOR INTERPRETATION:
The statistical tool used for measuring and analyzing data is percentage analysis. And
it is analyzed by using column chart.
POPULATION
The population is all elements that meet certain criteria in study in study. The
respondents in the Namakkal district are the units in the population.
SAMPLING PLAN
 Sampling size:
The sample size was 150 respondents.
 Sampling unit:
Here the sampling units are mainly the final consumers.
 Sampling procedure/ method:
The sampling method used was “convenient Probability Sampling”
PERCENTAGE ANALYSIS
The percentage analysis is an important tool for analyzing the data developed by
statisticians. It can use to various comparisons between theoretical population and actual data
when categories are used. Here it is used to find significance and conclude with it. It is
calculated follows.
Percentage analysis is used by the research for analyzing and interpreting the
collected data.
Actual respondent
Percentage analysis =………………………………….*100
Total no. Of respondent.
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1.6. LIMITATION:
 Due to time constraints, limited numbers of respondents were catered.

 The survey was concluded on a specific in college student.
 Most of the people not aware from the health insurance.
 The due to time constrain have collected 150 sample.
1.7. OBJECTIVES OF THE STUDY
1. To know the satisfaction level of consumer towards Star Health Insurance.

2. To know the consumer’s psychology in brand awareness, preferences and brand
image.
3. To study the effectiveness of the schemes and sales performance of said product.
4. To analyze the growth and development of Star Health Insurance in the world, in
India and in Tamil Nadu.
5. To know about market share of star health in Indian insurance sector?
6. To understand about the company policy
31
32
CHAPTER -I
2.1 ABOUT INSURANCE:
As a tool by which fatalities of a small number are compensated out of funds (premium
payment) collected from plenteous. Insurance companies pay back for financial losses arising
out of occurrence of insured events e.g. in personal accident policy death due to accident, in
fire policy the insured events are fire and other allied perils like riot and strike, explosion etc.
hence insurance safeguard against uncertainties. It provides financial recompense for losses
suffered due to incident of unanticipated events, insured with in policy of insurance.
Moreover, through a number of acts of parliament, specific types of insurance are legally
enforced in our country e.g. third party insurance under motor vehicles Act, public liability
insurance for handlers of hazardous substances under environment protection Act. Etc.
INSURANCE
It is a commonly acknowledged phenomenon that there are countless risks in every
sphere of life .for property, there are fire risk; for shipment of goods. There are perils of sea;
for human life there are risk of death or disability; and so on .the chances of occurrences of
the events causing losses are quite uncertain because these may or may not take place.
Therefore, with this view in mind, people facing common risks come together and make their
small contribution to the common fund. While it may not be possible to tell in advance,
which person will suffer the losses, it is possible to work out how many persons on an
average out of the group, may suffer losses. When risk occurs, the loss is made good out of
the common fund .in this way each and every one shares the risk .in fact they share the loss
by payment of premium, which is calculated on the likelihood of loss .in olden time, the
contribution make the above-stated notion of insurance
33
2.3 DEFINITION OF INSURANCE
Insurance has been defined to be that in, “which a sum of money as a premium is paid
by the insured in consideration of the insurer’s bearings the risk of paying a large sum upon a
given contingency”.
The insurance thus is a contract whereby:

a. Certain sum, termed as premium, is charged in consideration,
b. Against the said consideration, a large amount is guaranteed to be paid by the insurer
who received the premium.
The compensation will be made in certain definite sum, i.e., the loss or the policy amount
which ever may be, and.
The payment is made only upon a contingency More specifically, insurance may be defined
as a contact between two parties, wherein one party (the insurer) agrees to pay to the other
party (the insured) or the beneficiary, ascertain sum upon a given contingency (the risk)
against which insurance is required.
2.4 TYPES OF INSURANCE

Insurance occupies an important place in the modern world because of the risk, which
can be insured, in number and extent owing to the growing complexity of present day
economic system. The different type of insurance have come about by practice within
insurance companies, and by the influence of legislation controlling the transacting
of insurance business, broadly, insurance may be classified as follow.
2.5. Kinds of Insurance:
Broadly, insurance may be classified into the following categories:
1. Classification from business point of view:

a) Life insurance, and
b) General insurance
34
2. Classification on the basis of nature of insurance)
a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance
3. Classification from risk point of view
a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance
2.6 .THE IMPORTANCE OF INSURANCE

Insurance benefits society by allowing individuals to share the risks faced by many people.
But it also serves many other important economic and societal functions. Becauseinsurance is
available and affordable, banks can make loans with the assurance that theloan’s collateral
(property that can be taken as payment if a loan goes unpaid) is coveredagainst damage. This
increased availability of credit helps people buy homes and cars.Insurance also provides the
capital that communities need to quickly rebuild and recover economically from natural
disasters, such as tornadoes or hurricanes. Insurance itself has become a significant economic
force in most industrialized countries. Employers buy insurance to cover their employees
against work-related injuries and health problems. Businesses also insure their property,
including technology used in production, against damage and theft. Because it makes
business operations safer, insurance encourages businesses to make economic transactions,
which benefits the economies of countries. In addition, millions of people work for insurance
companies and related businesses. In 1996 more than 2.4 million people worked in the
insurance industry in the United States and Canada.
Insurance as an investment that offers a lot more in terms of returns, risk cover &was also
that tax concessions & added bonuses Not all effects of insurance are positive ones. The
possibility of earning insurance payments motivates some people to attempt to cause damage
or losses. Without the possibility of collecting insurance benefits, for instance, no one would
think of arson, the will full destruction of property by fire, as a potential source of money.
35
Insurance is the unique and most important financial instrument used in order to cover
the risks in the society. Thus, insurance plays a crucial role in sustainable growth
unfortunately, financial system stability is a key component of a healthy economy and
contributes directly to economic growth and development. An effective deposit insurance
system is one of the pillars of a sound financial system and public confidence in that system.
Economists are well aware of the economic benefits of staying on in education.

However, we do not know how well informed (or otherwise) students are of costs and
benefits at the time at which they make important decisions about their future.
Life insurance is designed to protect life and to product family against financial uncertain ties
that may result due to unfortunate demise or illness. It can also view as a comprehensive
financial instrument, as a part of the financial planning offering savings & investment
facilities along with cover against financial loss. By choosing the right policy as per the needs
i.e. customized solutions, you will be able to plan for a secure future for yourself and your
loved ones.
Bansal (2005) in an article, “Insurance Sector: in Privatization on the Right Track”

discussed the recommendations for changes in the structure of the industry and policy
framework. The suggestions to improve the functioning of LIC and to examine the role
of intermediaries. Since 1991 Indian economy have been going through

European financial reforms. Consequent to the important landmark reforms in
the financial sector, the insurance sector in India is going to witness sea change.
Liberalization entails on modernizing industrial system by removing unproductive

controls, encouraging private and foreign investment and integrating Indian economy with
the global economy (2018)(knowledgementdigest.com) in his research paper, “Technology
and Life Insurance Distribution” discussed the effect of technology on Life Insurance
Distribution, Whether life insurers and insured are aggressively seeking to make use of into
Rent or not.
The basic function of health insurance is to provide‘ access to health care with
financial risk protection’. The need for an insurance system that works on the basic principle
36
of pooling of risks of unexpected costs, of persons falling ill and needing hospitalization, by
charging premium from a wider population base of the same community is gaining popularity
in India. At present as many as 135 million Indians do not have access to health services.
In most developing countries regressive out-of-pocket payments

represent a majority of total health spending and countries must find multiple ways to
encourage the transition towards financing methods which provide adequate financial
protection for their people. In the presents scenario the annual expenditure on health in India
amounts to about $7 in rural areas and US$10 in urban areas per person, the majority of care
being provided by the private sector. The high proportion of out-of –pocket expenditures
of80% indicates that even the poor are willing to pay for better health services.
Against an estimated potential health insurance market of between$100-5000 million,

with an average of US$200 million, is the present health insurance market in India. The
majority of this being provided by the government undertaking, the General Insurance
Corporation (GIC) and its subsidiaries covering just 1.6 million people of the country.
Economists are well aware of the economic benefits of staying on in education.

However, we do not know how well informed (or otherwise) students are of costs and
benefits at the time at which they make important decisions about their future. After the age
of 16, students in England can leave education permanently – and many do. At the end of
2011, 14.5% of 18year olds were not in education, training or employment in England.
Although there are many possible reasons why students might not stay on, one possibility is
that they are not well informed about the benefits and costs of educational decisions. Lack of
information might also affect the choice of post-compulsory education (e.g. subject and
institution of study).
It is important that students are well informed early on in their school career as if
information does play a role, it could influence effort in school exams (and/or effort in
particular subjects).This could influence their future trajectory as much weight is placed on
how students do in their age 16 exams (GCSEs) for what they are able to do later on. In this
study, we investigate what students know in a sample of London schools when they are aged
37
between 14 and 15. We design an ‘information campaign’ that gives some simple facts about
economic and financial aspects of educational decisions.
My analyses the impact of this information campaign on students’ knowledge and

aspirations by use of a randomized control trial. During the fieldwork for this study, the
government announced the trebling of university fees. This announcement received a great
deal of media attention.
I investigate the impact of media reports on knowledge and aspirations. The material
for our ‘information campaign’ consists of a (password protected) website, materials that can
be used by the teacher (a video and presentation) and a one page flyer than can be handed out
to students. We survey whole year groups of 14-15 year olds on two occasions, 8-12 weeks
apart. This mainly took place over the first two terms of the academic year 2016-2017. We
evaluate whether students receiving the material in-between the two surveys demonstrated
different knowledge and aspirations by the time of the second survey, relative to students in
schools that obtained the material at a later stage.
The students in our study appear to have fairly low baseline knowledge but the
information materials offered have a significant effect both on knowledge and on future
aspirations. In many cases, the magnitude of the effect is comparable to the effect of media
reports (which we measure between the two surveys for every school). Also, it can work in
the opposite direction – countering some of the imbalance in the media reporting about
government announcements on student fees. The analysis of our experiment and the (non
experimental) media campaign suggests that ‘information’ has an important role.
Wealth is an important constituent of human resource development. Good health is

real wealth of society. It not only increases human efficiency but also decreases private and
public expenditure on sickness and diseases. Health has been declared as a fundamental
human right. The present concern in both developed and developing countries is not only to
reach the whole population with adequate healthcare services but also to secure an acceptable
level of health for all though the application of primary healthcare programmer. Healthcare
services help to reduce infant mortality rate, check crud death rate, keep diseases under
control and raise life expectancy.
38
Health insurance is fast emerging as an important mechanism to finance health care needs of
the people. The need for an insurance system that works on the basic principle of pooling of
risks of unexpected costs of persons falling ill and needing hospitalization by charging
premium from a wider population base of the same community. There is growing evidence
that the level of health care spending in India – currently at over 6 per cent of its total GDP –
is considerably higher than that in many other developing countries. This evidence also
suggests that more than three-quarters of this spending includes private out-of-pocket
expenses.
The mission of the International Association of Deposit Insurers (IADI) is to

contribute to the enhancement of deposit insurance effectiveness by promoting guidance and
international cooperation. Its vision is to share its deposit insurance expertise with the world.
As part of its work, the IADI undertakes research projects to provide guidance on deposit
insurance matters. Financial system stability is a key component of a healthy economy and
contributes directly to economic growth and development. An effective deposit insurance
system is one of the pillars of a sound financial system and public confidence in that system.
Public awareness of deposit insurance its existence and how it works plays a significant role
in underpinning a sound deposit insurance system.
Given the importance of public awareness to an effective deposit insurance system

and to financial stability, IADI has set forth guidance through adoption of the BCBS-IADI
Core Principles for Effective Deposit Insurance systems and its accompanying assessment
methodology. The Core Principles include guidance for public awareness under Principle 12.
Principle 12 on public awareness states:
Contemporaneously with issuing the Core Principles, IADI also produced a Guidance
Paper on Public Awareness of Deposit Insurance Systems. The Guidance Paper provided a
number of supporting guidance points to supplement Core Principle 12. Furthermore,
experience gained and lessons learned during the international financial crisis have led to the
evolution of good practices in public awareness.
During 2016-2017, the FSB undertook a Thematic Review on Deposit Insurance

Systems.5 The FSB Review made a number of observations regarding deposit insurer public
awareness in the wake of the financial crisis. It observed that several FSB member countries
have comprehensive public awareness programs using a wide range of tools to inform
39
depositors. But, the FSB noted that it has not yet become common practice for deposit
insurers to conduct regular monitoring of public awareness levels, potential information gaps,
or perceptions among depositors. As a result, it is very difficult for deposit insurers to
determine public confidence in the deposit insurance system. They noted the particular
importance of public awareness in situations where depositors could receive coverage from
more than one deposit insurance system.
2.7 THE INSURANCE INDUSTRY TODAY

Since the 1970s, the insurance business has grown dramatically and undergone tremendous
changes. As a result of the deregulation of financial services businesses— including
insurance, banking, and securities trading—the roles, products, and services of these formerly
distinct businesses have become blurred. For instance, citizens in the U.S.state of California
voted in 1988 to allow banks to sell insurance in that state. In Canada, banks may also soon
be allowed to sell insurance. Advances in communications technology have also allowed
traditionally distinct financial businesses to keep instantaneous track of developments in
other businesses and compete for some of the same customers. Some insurance companies
now offer deposit accounts and mortgages. In the United States, life insurance companies
now sell more pension plans and other asset management services than they do conventional
life insurance. Developments in computer technology that have given insurance providers the
ability to quickly access and process information have allowed them to custom-
design policies to fit the needs of individual customers. But the increasing complexity of
policies as also made some aspects of buying and selling insurance more difficult. In
addition, improvements in geological and meteorological technology have the potential to
change the way property insurers calculate risks of damage. For example, as scientists
improve their abilities to predict severe weather patterns, such as hurricanes, and geological
disturbances, such as earthquakes, insurers may change how they provide protection against
losses from such events
40
2.8 EVOLUTION OF INSURANCE IN INDIA
The marine insurance is the oldest form of insurance. If we trace Indian history there
are evidence that marine insurance was practiced here about three thousand years ago. The
code of Manu indicates that there was the practice of marine insurance carried out by the
traders in India with those of Srilanka, Egypt and Greece .it is wonderful to see that Indians
had even anticipated the doctrine of average and contribution. Fright was fixed according to
season and was then very much at the mercy of the wind and other elements. Travelers by sea
and land were very much exposed to the risk of losing their vessels and merchandise because
of piracy on open seas and highway robbery of caravans was very common. The practice of
insurance was very common during the rule of Akbar to Aurangzeb, but the nature and
coverage of the insurance in this period is not well known. It was the British insurer who
introduced general insurance in India in the modern form. The Britishers opened general
insurance in India around the year 1700 .the first company known as the sun insurance office
was set up in Calcutta in the year 1710.This was followed by several insurance companies
like London assurance and royal exchange assurance (1720), Phoenix Assurance Company
(1782). Etc. General insurance business in the country was nationalized with effect from 1st
January 1973 by the General Insurance Business (Nationalization) Act, 1972. More than 100
non-life insurance companies including branches of foreign companies operating within the
country were amalgamated and grouped into four companies, viz., the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta,Bombay,
New Delhi and Madras, respectively.
Life insurance in the current form came in India from united kingdom with the
establishment of a British firm, oriental life assurance company in 1818 followed by Bombay
life assurance company in 1823, the madras equitable life insurance society in 1829 and
oriental life assurance company in 1874.prior to 1871, Indian lives we retreated as sub
standard and charged an extra premium of 15% to 20%. Bombay mutual life assurance
society, an Indian insurer that came in to existence in 1871, was the first to cover Indian lives
at normal rates.
The Indian insurance company Act 1923 was enacted inter alia, to enable the government to
collect statistical information about life and non-life insurance business transacted in India by
Indian and foreign insurer, including the provident insurance societies.
41
The first half of the 20thcentury marked by two world war, the adverse affects 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 was also marked by struggles for India’s independence. The aggregate effect of these
events led to a high rate of bankruptcies 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 In this background, the Parliament of India passed the Life Insurance of India Act
on19th June 1956, and the Life Insurance Corporation of India was created on 1stSeptember,
1956, by consolidating the life insurance business of 245 private life insurers and other
entities offering life insurance services.
9Since 1972, the insurance sector has been totally under the control of government of India
through LIC and GIC and its subsidiaries. As a result, revenue of both of them increased in
the last years .the amount of savings pooled by LIC increased from Rs.2704 cores in 1974 to
Rs .57670 in 1994 with an annual growth rate of 16.53%.similarly premium underwritten by
GIC rose from 280 cores in 193 to 7647 cores in1998 showing an annual growth rate of
25.18%.Despite increase in premium collected by both LIC and GIC there were inefficiency
and red tap eisumcreped in to the insurance sector. Apart from that a major policy shift by
the Narasimha Rau government during 1990’s.the Indian economy opened for foreign
competition .In this background The government of India in 1993 had set-up a high powered
committee by R.N Malhothra ,former governor reserve bank of India, to examine the
structure of Indian insurance sector and recommended changes to make it more efficient and
competitive keeping in view structural changes in other part of the financial system of the
country. Insurance sector has been opened up for competition from Indian private insurance
companies with the enactment of Insurance Regulatory and Development Authority Act,1999
(IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and
Development Authority (IRDA) was established on 19th April 2000 to protect the interests of
holder of insurance policy and to regulate, promote and ensure orderly growth of the
insurance industry. IRDA Act 1999 paved the way for the entry of private players into the
insurance market, which was hitherto the exclusive privilege of public sector insurance
companies/ corporations.
42
2.9 Function of Insurance
The function of insurance is two folds. In the first instance it transfers or shifts a risk from one
individual to a group and secondly, the losses are shared, on some equitable basis by all members of the
group. Insurance is a device where-by the risk of financial loss accruing from death or
disability, or damage to, or destruction of property owing to perils to which they are exposed is
passed on to another. The insurer, of course, collects an agreed rate of contribution from a large number of
people and relieves the insured partly, if not wholly, from the effects of loss by paying the insurance money.
2.10 Contract of Insurance

A contract of insurance is an agreement whereby one party called the Insurer undertakes, in return for
an agreed consideration, called the Premium, to pay the other party namely, the Insured a sum of money or its
equivalent in kind, upon the occurrence of specified event resulting in loss to him. The Policy is a document,
which is an evidence of the contract of insurance. The contract of insurance is governed by the law of contract
as embodied in the Indian Contract Act,1872. All insurance contracts must have the following five essential
elements in order that they may be legally enforceable
2.11 EVOLUTION OF INSURANCE ORGANIZATION

With a view to serve the society, the insurance organizations have been developed in
different forms with innovation of insurance practice for social welfare and development;
some of these forms are outlined here.
a) Self-insurance
The arrangement in which an individual or concern sets up a private fund to meet the
future risk. If some losses happened in the future the firm meets the loss out of the fund.
While it may be called ‘self insurance’ it is not a single matter of fact, insurance at all
because there is no hedge, no shifting, or distributing the burden of risk among
larger Persons. It is merely a provision to meeting the unforeseen event. Here the
insured become the insurer for the particular risk. But it can be effectively worked only when
there is wide distribution of risks subjected the same hazard.
43
b) Partnership
A partnership firm may also carry on the insurance business for the sake of profit. Since
it’s not an entity distinct from the persons comprising it, the personal liability of partners in
respect to the partnership debts is unlimited. In case of huge loss the partners may have to pay
from their own personal funds and it will not be profitable to them to starts
insurance business .in the early period before the advent of joint stock companies many
insurance undertakings were partnership firms or unincorporated companies
c) Joint stock companies
The joint stock companies are those, which are organized by the shareholders who
subscribe the necessary capital to start the business. These are formed for earning profits for
the stockholders who are the real owners of the companies. The management of accompany
is entrusted to a board of directors who is elected by the shareholders from amongst
themselves. The company can operate insurance business and policyholders have nothing to
do with the management of the concern. But in life insurance it is the practice to share certain
portion of profit among the certain policyholders.
d) Mutual fund companies

The mutual fund companies are cooperative association formed for the purpose of
effecting insurance on the property of its members. The policyholders are themselves the
shareholders of the companies each member is insured as well as insured. They have power
to participate in management and in the profit sharing to the full extent. Whenever the income
is more than the expenses and claims, it is accumulated I the form of saving and is entitled in
reducing the rate of premium. Since the insured are insurers also, they always try to reduce
the management expenses and to keep the business at sound level.
e) Co-operative insurance organizations

Cooperative insurance organizations are those concerns, which are incorporated and
registered under Indian cooperative societies Act. The concerns are also called ‘co operative
insurance societies’ these societies like mutual fund companies area on profit organization
.the aim is to provide insurance protection to its members at the lowest reasonable net cost
44
.the Indian insurance Act. 1938, has provided special provisions for the co-operative
insurance societies, but after nationalization the societies have ceased to exist.
f) Lloyd’s Association
Lloyd’s association is one of the greatest insurance institutions in the world. Taking
its name from the coffee house Lloyd where underwriters assembled to transact business and
pick-up news. The organization traces its origins to the latter part of the seventeenth century
.so it is the oldest insurance organization in existing form in the world. In 1871,Lloyds Act
was passed incorporating the members of the association into a single corporate body with
perpetual succession and a corporate seal .the powers of Lloyds corporation were extended
from the business of marine insurance to the other insurance and guarantee business. The
Lloyds Association also publishes, Lloyds list and register of shipping for the information of
insuring public and the insurers
g) State Insurance
The government of a nation, sometimes, owns the insurance and runs the business for
the benefit of the public. The state insurance is defined as that insurance which is under
public sector. In Brazil, Japan and Mexico, the insurance are largely nationalized. Previously,
the state undertook only those insurances, which were regarded as vital for the national
interest.
2.12 INSURANCE SECTOR :

Having looked at the insurance sector, the efforts made by the government to make the
industry more dynamic and customer friendly. To begin with, the Malhotra committee was
set up with the objective of suggesting changes that would achieve the much required
dynamism.
A. THE MALAHOTRA COMMITTEE:
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI
Governor R. N. Malhotra, was formed to evaluate the Indian insurance industry and
recommend its future direction. In 1994, the committee submitted the report and gave the
following recommendations:
B. STRUCTURE:
Government stake in the insurance Companies to be brought down to 50%
45
Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations All the insurance companies should be given
greater freedom to operate
C. COMPETITION:
Private Companies with a minimum paid up capital of Rs.1bn should be allowed
to enter the industry No Company should deal in both Life and General Insurance through
a single entity Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies. Postal Life Insurance should be allowed to operate in the
rural market. Only one State Level Life Insurance Company should be allowed to operate
in each stat
D. REGULATORY BODY :
The Insurance Act should be changed. An Insurance Regulatory body should be
set up. Controller of Insurance (Currently a part from the Finance Ministry)
E. INVESTMENT:
Mandatory Investments of LIC Life Fund in government securities to be reduced
from75% to 50%.GIC and its subsidiaries are not to hold more than 5% in any company
(There current holdings to be brought down to this level over a period of time).
F. CUSTERMER SERVICES:
Star health insurance should pay interest on delays in payments beyond 30 days.
Insurance companies must be encouraged to set up unit linked pension plans.
Computerization of operations and updating of technology to be carried out in the
insurance industry. Overall, the committee strongly felt that in order to improve the
customer services and increase the coverage of the insurance industry should be opened
up to competition. But at the same time, the committee felt the need to exercise caution as
any failure on the part of new players could ruin the public confidence in the industry
46
2.13 CHARACTERISTICS OF INSURANCE:
 It is a contract for compensating losses.

 Premium is charge for insurance contract.
 The payment of insured as per term of agreement in the event of loss.
 It is a contract for mutual benefit.
 It is a future contract for compensating the losses
 It is an instrument of distribution the loss of few among many.
 The occurrence of the loss must be accidental.
 Insurance must be consistent with the public policy
2.14 Nature of insurance
 Sharing of risk.
 Co-operative device
 Valuation of risk
 Payment made on contingency.
 Amount of payment
 Large number of insured persons.
 Insurance is not gambling.
47
CHAPTER -3
48
CHAPTER - II
3.1. REVIW OF LITERATURE
Introduction
Review of literature is necessary as it familiarizes the researcher with concepts and
conclusions already evolved by earlier analysts. It also enables the present researcher to
measure the need for future study and to frame appropriate objectives for the proposed
evaluation. Since the proposed study is to analyses the gap between expectations and
perceptions in service quality, the previous studies made in this area of research are briefly
reviewed. It also includes the opinions expressed by various authors in leading articles,
journals and books.
The primary purpose of literature is to gain a broad background that available related to
problems in conducting research. Review of literature facilitates selecting a problem and
purpose, developing a framework, and formulating a lesson plan. Literature review is a key
step in research process. Review of relevant literatures is an analysis and synthesis of
research sources to generate a picture of what was known about a particular situation and
knowledge gaps that exist in the situation. In order to attempt the goal in the present study, an
attempt has been made to review and discuss the literature.
A review of these studies has presented in this chapter in chronological order. The review has
been divided into three parts. The first part discussed the studies related to dependent
variable, the second part analyzed the studies related to independent and moderating
variables, and finally the third part discussed studies related to life insurance companies in
India.
49
3.2. THEORATICAL PRESPECTIVE
Brand awareness is the potential capacity that a consumer recognizes or recall the
name of the brand of a certain category of a product. Thus, brand awareness is an exercise of
identification of the brand name under different conditions and, therefore, the probability of a
brand name coming to the consumer and the facility with which this happens.
Awareness essentially means that customers know about the existence of the brand, and also
recall what categories the brand is in. The lowest level of awareness is when the customers
have to be reminded about the existence of the brand name, and its being a part of the
category. Thereafter is the stage of aided recall, i.e., upon the mention of the category, the
customer can recognize the company’s brand from among a list of brands. Then is the stage
of unaided recall, where in a customer mentions the company’s brand among a list of brands
in the category.
The highest level of awareness is when the first brand that the customer can recall upon the
mention of the product category is the company’s brand. This is called top-of-mind recall.
(Arun kumar & N Meenakshi,2006).
According to McKay and Brockway (1989)
McKay and Brockway (1989) were pioneers of defining information technology

infrastructure constituents in a three – layer model which was later modified by Weill (1993)
(shown in Figure 2.5.1). They reported that information technology infrastructure was
illustrated as the base supporting specific information technology applications which made
business processes possible. The infrastructure foundation encompassed the shared
technological elements, or building blocks, like hardware, software, communications, and
other support necessary for business. Above the foundation of information technology
infrastructure were the human and organizational elements necessary for effectively rounding
up information technology components into strong, useful information technology services.
These middle elements as infrastructure planning and management factors were representing
the functionality of everything necessary to operate a business. The elements here make
“direct purpose” uses of technology achievable, and allow the successful realization of the
information technology architecture. Information technology human resources are
50
information technology professionals who have technical, managerial and organizational
skills to innovate and support significant business activities. Information technology planning
and management are responsible for architectures, plans, guidelines, policies and rules
necessary for information technology technological component development throughout the
organization. The information technology elements combined into shared information
technology services that link and sustain information technology applications to business
processes and information technology components to achieve information technology
functionality and value.
In other hand, business intelligence is an information technology – enabled information

system that is built on top of an organization information technology infrastructure.
Information technology infrastructure will improve business intelligence performance by
providing more accurate and timely data and information with easily integrated data sources.
In summary, based on the literature, information technology infrastructure is significant

source of business intelligence and both of them are significant sources of organizational
agility because they contribute to the sensing / detecting and acting / responding dimensions
of organizational agility, respectively. And also information technology infrastructure is a
contributing factor to the improvement of organization performance. This study used the key
components of information technology infrastructure identified in the information system
literature in order to develop survey instruments to measure information technology
infrastructure.
Studies Related to Indian Life Insurance Industry
Insurance in dictionary of business and finance defined as a form of contract or

agreement under which, one party agrees in return for a consideration to pay an agreed
amount of money to another party to make good for a loss, damage, or injury of something of
value in which the insured has a pecuniary interest as a result of some uncertain event
According to Gumber and kulkarani (2000), found that there was strongly expressed need
for health insurance among low income households in both rural and urban areas. This need
has arisen primarily because of heavy burden of out-of-pocket expenditure on them while
seeking health care. The need for education for rural and urban populations alike on the
concept of insurance and information on health insurance is a crucial aspect in extending
health insurance coverage on large scale.
51
According to Byrd and Turner (2001)
Byrd and Turner (2001), proposed that information technology infrastructure was
consistently defined in literature as a set of shared information technology resources that
were a foundation for enabling communication across an organization and enabling present
and future business applications. They also emphasized information technology
infrastructure’s ability to easily and readily support a wide variety of hardware, software, and
communication technologies, to distribute information to anywhere inside an organization
and beyond, and to support the design, development, and implementation of heterogeneity of
business applications.
According to Indirani Gupta (2002), The study found a wide disparity across selections on
willingness to participate. The challenges for the new system would be to pool individuals
across risk and economic status categories, setup a multi-tier system to meet objectives of
equity and efficiency in health care delivery and for planners and regulators, to keep health
insurance separate from other non-health insurance.
According to Ahuja (2004) explained that health insurance was emerging as an important
financing tool in meeting the health care needs of the poor. Households which have higher
health expenditure and income have higher probability of renewing health insurance policy.
According to Mudgal (2005) examined that whether consumption expenditure of
households in rural India was insured against medical ailments.
This study found that the villagers were not able to perfectly share the risk of all shocks.
Indirani Gupta (2002) found a wide disparity across selections on willingness to participate.
The challenges for the new system would be to pool individuals across risk and economic
status categories, setup a multi-tier system to meet objectives of equity and efficiency in
health care delivery and for planners and regulators, to keep health insurance separate from
other non-health insurance.
According to Chanopas et al. (2006)
Reported that information technology not only includes the technological components but
also the human components. Four key components of information technology infrastructure
have been identified in the literature. (1) Connectivity, (2) compatibility, (3) modularity and,
52
(4) information technology personnel competency were first identified by Duncan (1995) and
Byrd and Turner (2001). Mishra and Agarwal (2010) added organizational cognition of
information technology technologies (technological frame) as another component of
information technology infrastructure.
According to Dai et al. (2007)
Information technology infrastructure could be classified into information technology

physical, intellectual, and information technology – related procedural assets. Information
technology physical assets were fundamental technical fundamentals shared across
organizational units, such as organization – wide technical platforms, architectures, networks
and databases. Information technology intellectual assets were information technology –
related knowledge, expertise and management of technology within a firm. Information
technology related procedural assets were regulations that specify how other information
technology assets are evaluated, acquired, built, implemented, used, improved and replaced.
Information technology standards were an example of procedural assets since they made rules
for system design and development.
According to Prof. Pallawi B. Sangode (2011) This research paper is based on the
findings of comparative study of service quality of various health insurance companies in
Nagpur. Service quality is a fundamental aspect of service provision, and this is especially the
case with coverage amount and service during claim. The questionnaire was a self-
completion questionnaire consisting of 26 questions.
According to Choudhuri (2014) explained that as a social being customers are not
only relationally attached with the different kinds of people in their daily life but also directly
related with their service provider s in different ways. Empirical studies indicated that in the
modern age of the society, the technology savvy customers‟ awareness about the several
existing life insurance products depends on a number of factors where over times these
factors varies situation wise, culture wise, nation wise, sector wise as well as industry wise.
Considering awareness scenario of the customers of Life Insurance Corporation of India.
53
According to Narendar and Sampath (2016)observed that the level of awareness towards
the rights and duties regarding insurance is negligible. The study tries to understand the
awareness of the people towards the rights and duties towards life insurance products after
the privatization of the insurance sector with special reference to Indian insurance sector. To
actually understand this, a primary research was conducted to find out the level of awareness
towards the rights and duties of the policy holders across demographic profiles and about the
level of awareness towards life insurance policies prevailing in the Indian market. The study
totally concentrates on the individual behavior, attitudes and also crating the awareness
regarding their contribution on Indian insurance sector.
54
3.3. COMPANY PROFILE
Star Health and Allied Insurance Co Ltd is an Indian insurance

company that commenced its operations in 2006. The company primarily
focuses on Health Insurance, Travel Insurance and Accident policies.
Star Health and Allied Insurance
Industry : Health Insurance
Founded : 2006
Headquarters : Chennai, Tamil Nadu, India
Products : Health Insurance Accident

Care Insurance Travel
Insurance
Website : www.starhealth.in
55
It has more than 340 offices across India and around 8000+ hospitals under its
network Star Health Insurance Company
Star Health and Allied Insurance Company Limited came into existence in the year
2006 offering various types of health insurance, overseas med claim insurance and personal
accident policies. The company was established to specialize in the health insurance sector
and today Star Health and Allied
Overview
Star Health and Allied Insurance Co Ltd commenced its operations in 2006 with the
business interests in Health Insurance, Overseas Mediclaim Policy and Personal Accident.
With no other insurance category to focus and divide our attention, we use our resources to
focus on service excellence, design products and use core competency of innovation to
deliver the best to our customers.
At Star Health Insurance, the company offers a wide range of health insurance
products at affordable prices to make health insurance every human being’s right. And as a
company, single-mindedly dedicated to health insurance
OUR VISION:
 To Become The Largest And Most Preferred Health Insurance Company In India.
 To Provide Financial Security For Health Care Management.
OUR MISSION:
 To Offer Wide Range Of Innovative Products / Services.

 To Provide Prompt, Courteous And Quality Service To Customers.
 To Leverage State Of Art Technology For Customer Satisfaction.
 To Adopt Best Management Practices In Business Operations.
56
OUR COMMITEMENT
 Make Available Insurance Coverage To Every Segment Of Population.
 Expand Product Lines And Services On Continuing Basis.
 Build And Maintain Enduring Relationships With Customers.
 Conduct Business Operations With Customer As Focal Point.
 Create Insurance Awareness As Part Of Corporate Social Responsibility.
57
3.4. PRODUCT ON STAR HEALTH INSURANCE COMPANY:
A. Health insurance
1) Individual health plan
2) Family plan
3) Senior citizen plan
B. Travel insurance
C. Accidental insurance plan
58
3.5. FEATURES
 India’s First stand-alone Health insurance company.
 Pan Indian presence with more than 290 Branches offices.
 Cashless hospitalization and reimbursement facility in with more than 7000
hospitals across India.
 24*7 hours call centre facility.
 Hassle-Free and customer friendly direct claim settlement without intervention of
TPA
 Health insurance company of the year 2015- Indian Insurance Awards 2015.
 Personalized Doctor Visit for all customers getting hospitalized.
 Over 400 Days care procedure.
 Expenses incurred towards cost of health check up after 3 year worth Rs-5,000/
 Coverage for new born baby after 16 days.
 Coverage for domiciliary hospitalization treatments.
 Get auto recharge at no extra cost, up to 30% sum insured.
 Donor expenses for organ transplantation.
59
Capital
We have built a promising path for our future with a capital base of
Rs.1050 cores. We have emerged as India’s first stand-alone Health Insurance
Company, dealing in personal accident, medi-claim and overseas travel
insurance.
Myself
 For Individuals aged between 18 to 65 years.

 No cap on room rent and treatment cost
 Hospital cash benefits
 Cover for over 400 day care procedures
 Free health check-up for every block of 3 claim free years.
My Family
 Affordable Health Insurance cover on a floater basis

 Covers Dental / ophthalmic treatments on OPD basis
 Upton 100% Increase in Sum Insured upon a claim free renewal
 Benefits include Air ambulance facility and availing Second medical
opinion
 No cap on room rent and treatment cost
My Parents
 For Senior citizens aged between 60 to 75 years

 No pre-insurance medical test required
 Covers pre-existing diseases from the second year onwards
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 Medical Consultations as an Out Patient in a Network Hospital
 Guaranteed lifetime renewals
ACCIDENT CARE INSURANCE:
 Emergency medical expenses including medical evacuation and

transportation
 Cover for Loss of checked in baggage, Delay of checked in
baggage
 Cover for Legal Liability for bodily injury or property
 Dental emergency expenses following an accident
 Personal Accident
 Cover for Accident death, Permanent Disability and temporary
Disablement
 Enhanced weekly compensation up to Rs.15000/- per week (maximum
100 weeks)
 Cumulative bonus 5% per annum, maximum 50%
 Compensation for Permanent Total Disablement is 150% of the sum
insured
 Educational Grant for dependent children
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ELIGIBILITY:
 Any person between 18 and 70 years of age at the time of entry can take this
insurance .Lifelong renewal
 Dependent children covered from 5 months.
 Policy benefits are applicable individual for each person covered under family.
BONUS:
Bonus in respect of a claim-free year of insurance is allowable up to the

limitation specified. The bonus so granted will be reduced in the same
order in which it was given following a claim. However the basic sum
insured shall not be reduced.
Automatic Restoration of sum insured:

Immediately upon exhaustions of the limit of coverage during the policy period, there
shall be an automatic restoration of the basic sum insured by 100% where the sum
insured is Rs.3,00,000/- and above.
% Of Restorations on the basic

Basic Sum Insured(Rs) Sum insured.
Up to 2,00,000 Nil
3,00,000 100%
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3.6. A POILCY TO COVER THEENTIRE FAMILY
Entry Age 16 days to 65 years; only renewals allowed after 65 years.
Sum Assured Rs.3, 890 to Rs.34, 700; Depends on sum assured, age, family size and
zone; based on age of oldest insured member.
Premiums charged 15% to 35% depending on the sum assured.
Bonus 100% for coverage of Rs.3 lakhs and above
Reinstatement of sum 20% of all claims for insured members of ages 61 to 65 years.
assured
Co-payment 20% of all claims for insured members of ages 61 to 65 years.
Covers Cataract surgery, Ambulance charge, Pre-Existing diseases, Pre and

Post-Hospitalization expenses, Day-care expenses.
63
3.7. SWOT ANALYSIS
1) S- Strength
2) W- Weakness.
3) O-Opportunities.
4) T-Threats.
1. STRENGTHS
 Star health commences it business in 2006 as very early as compared to 4 other health
companies.
 Business Growth is very much higher as compared to other.
 Emerging middle income group India’s middle income group is rapidly increases and
would be emerging as a profitable market.
 Huge population.
2. WEAKNESS
 Lack of awareness about health insurance among the people.
 Increases competition in health insurance market from other co. such as
HDFC Health insurance, Maxbupa ext…
3. OPPORTUNITIES
 Creation of strong demand
 India’s improving economic fundamental will support faster growth in per capital
income in the coming years, which will translate into strong demand for insurance
products.
 Strong future growth can be the rise in more demand for these lines of health business
in the future.
4. THREATS
 New arrival is danger of coming into the market in health insurance.
 Government policy :
 There is change of opposing rules and regulation by government.
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STANDARDS FOR FAIRNESS IN DEALING WITH CUSTOMERS:
We Shall
 Strive To Deal With Customers In An Open And Transparent Manner.

 Explain Rationale Behind Decision Consistent With Business Practice.
STANDARDS FOR ACCESS TO INFORMATION

We Shall
 Educate Public And Customers Of Multiple Options In Products And Services.

 Distribute Brochures On Products And Services.
 Spread Information On Products And Services Through Internet, Interactive Voice
Response System, Information Kiosks Etc.
 Provide Access To Customers Through Help Lines, Call Centers, Internet Etc.
 Enhance Content And Quality Of Communication In Mass Media Like Press,
Television, Radio, Etc
BENCH MARKSFORSERVICING :
On Underwriting, We Shall
 Issue Policies On Individual Health, Personal Accident And Overseas Mediclaim Policies
Instantly.
 Confirm Underwriting Decision Within 7 Days From Receipt Of Medical Reports
Whenever Pre-Medical Examination Is Required.
 Send Renewal Notice 15 Days Before Expiry Of Policy.
BENCHMARKS FOR SERVICING :

On Settlement Of Claims, We Shall
 Give Pre Authorization For Cashless Facility Within 4 Hours From Receipt Of The
Request.
 Decide On Reimbursement Claims Within 30 Days Of Receipt Complete
Documents/Clarifications.
 Enable Customers To Know Claim Status Within 3 Days Of Receipt Of Documents.
STANDARDSFOR REDRESSAL OF GRIEVANCES:

We Shall
 Ensure Effective Grievance Redressed Mechanism For Customers To Approach.

 Register All Grievances And Send Acknowledgement Within 3 Days .
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 Monitor Grievances Registered On Integrated Grievance Management System
(IGMS) Through SRMS Portal.
 Resolve Grievances Within 15 Days Of Receipt.
 Inform Customers Availability Of Insurance Ombudsman As A Redressal Forum.
3.8. STAR HEALTH & ALLIED INSURANCE COMPANY LTD WHISTLE

BLOWER POLICY
1. Objective
a) The Company is committed to adhere to the highest standards of ethical, moral, legal,
integrity and professionalism in all the business operations. To maintain these
standards the Company encourages disclosures by its stakeholders who have concerns
about any suspected misconduct.
b) The Company encourages an open and transparent system of working environment
between the employees, policy holders, contractors, vendors, suppliers or agencies
and members of general public coming in contact with the Company and enable them
to raise concerns regarding any serious irregularities happening in the Company.
c) The policy will ensure that
d) Whistle blowers are protected from any harassment or any unfair practice or treatment
e) Such concerns raised are properly investigated and necessary action is taken.
2. Definition
The definition of some of the key terms used in this Policy are given below.
a) Disciplinary Action means any action that can be taken on the completion of/during the
investigation procedures including but not limiting to a warning, imposition of fine,
suspension from official duties or any such action as is deemed to be fit considering the
gravity of the matter.
b) Nodal Officer is the officer nominated by Chairman –cum-Managing Director under
Whistle Blower Policy, who would report to the Board
c) Investigators means those persons authorized, appointed, consulted including the police
66
d) Protected Disclosure means any communication made in good faith that discloses or
demonstrates information that may evidence unethical/improper activity or suspected
fraud or abuse transaction.
e) Subject means a person against whom a Protected disclosure has been made.
f) Whistle Blower means Director, Employee and parties in a direct contractual and /or
fiduciary relationship with the Company or any other person, making a Protected
Disclosure under this policy.
3. Scope and Coverage
The policy is applicable to various stakeholders of Star Health and Allied Insurance
Co Ltd and they fall under the following categories.
 All Directors of the Company

 Permanent and contractual employees of the Company based in or outside
 Employees of other agencies deployed for the Company
 Contractors, vendors, suppliers or agencies ( or any of their employees)
excluding the intermediaries
Any other person having an association with the Company are eligible to make
Protected Disclosures under the policy
a) The policy covers events which have taken place/suspected to take place involving
Breach of any law or regulation, criminal offence, breach of Company’s policies,
practices or procedures, employee code of conduct or rules, cases of suspected/actual
fraud, manipulation of Company’s records, misappropriation of Company
funds/assets, any misrepresentation on behalf of the Company, perforation of any
confidential information, abuse of authority by the Directors/Employees of the
Company, any activity which is unethical, biased, illegal, or detrimental to the
financial and /or reputational interest of the Company.
b) The policy shall not be used for raising any frivolous, malicious unfounded or
baseless allegations
4. Disqualifications
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a) Any misuse of the protection under this policy will warrant disciplinary/penal action
as decided by Nodal Officer, in consultation with FRMC and referred to the
appropriate authority with recommendations for necessary action.
b) Whistle Blower making any false or baseless allegations with any mala fide intentions
would be subject to necessary penal action under the relevant rules/laws and will not
be protected under the policy.
5. Procedure for lodging Disclosure under the policy
a) All the Protected Disclosure should be submitted in the prescribed format ( annexure -
1) in writing and sent only by post in a closed/sealed envelope and the same should be
factual, specific and verifiable to cause meaningful understanding of the matter of
disclosure.
b) The envelope should be addressed to the NODAL OFFICER under the Whistle
Blower Policy at Corporate Office super scribed “complaint under Whistle Blower
Policy.”
c) All Protected Disclosures shall be forwarded under a covering letter with identity of
the Whistle Blower
d) In order to protect the identity of the Whistle Blower no acknowledgement will be
given by the Nodal Officer and the Company assures to take appropriate action under
this policy and the Nodal Officer would contact with the Whistle Blower for any
further clarification/details.
6.Procedure for Whistle Blown disclosures
a) The Protected Disclosures received will be serially entered in the register with full
particulars furnished.
b) The Nodal Officer after analyzing the fitness of the case for further action shall place
with supporting notes if any before the Antifraud committee and both will decide the
further course of action.
c) All the Protected Disclosures will be forwarded to CVO for thorough investigation
and a report will be submitted to the Nodal Officer advising the management two of
the Company to take disciplinary action.
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7. Protection to the Whistle Blower No unfair treatment will be meted out to a Whistle
Blower by virtue of his having reported a Protected Disclosure under this policy. Adequate
safeguards against victimization of complaints shall be provided. The Company will take
steps to minimize difficulties, which the Whistle Blower may experience as a result of
making the Protected Disclosure. The identity of the Whistle Blower shall be kept
confidential to the extent possible and permitted under law.. Any other employee assisting in
the said investigation shall also be protected to the same extent as the Whistle Blower.
8. Reporting The Nodal Officer shall submit an yearly report to the Board briefing them on
the compliance of the Whistle Blowing policy and any instances of complaint received and its
developments.
9. Date of commencement of the Policy The policy is effective from 01.04.2010
10. Communication The policy will be uploaded in the Company’s website for the notice of
all employees, policyholders and members of the public.
11. Retention of documents All the Protected Disclosures along with investigation reports
shall be retained by the Company for a period of 5 years or such other period as specified by
any other law in force, whichever is more.
3.9. SOCIAL RESPONSIBILITY POLICY
a) BACKGROUND
The main business of the Company is Health Insurance. The company offers different
type of health insurance covers to individuals and corporate. The company carries the vision
of Protecting Health and Promoting Health in India and the mission of the company is health
for all with Ultimate Customer Satisfaction.
b) OVERVIEW OF THE COMPANIES ACT, 2013
Section 135 of the Companies Act, 2013 has made CSR as a mandatory provision for
prescribed Companies to add a sense of responsibility and contribution among Corporate.
The said section has to be read along with the Rules prescribed by the Act for implementation
of CSR.
69
c) APPLICABILITY
CSR as per the rules will be applicable if anyone of the following conditions is
satisfied by the Company: I) Turnover of Rs.1000 Cores ii) Net worth of Rs.500 Cores iii)
Net Profit of Rs.5 Cores
d) COMMITTEE AS PER ACT
Companies falling under the purview of section 135 shall constitute a CSR
Committee of the Board consisting of three or more Directors out of which at least one
Director shall be Independent Director. Accordingly we have constituted a CSR Committee.
e) CSR POLICY OF THE COMPANY
The Company shall undertake any one or more of activities (subject to approval of
Board) which falls within the provisions of the Schedule VII of the Companies Act 2013 read
with clarification issued by MCA from time to time:
f) MONITORING REVIEW & REPORTING
The Management Committee shall be responsible for submitting periodical

statements to the CSR Committee of the Board shall oversee the entire process of
implementation of CSR related activities.
g) REVIEW OF CSR POLICY
The CSR policy shall be reviewed by the CSR Committee as and when required.
h) AMENDMENTS TO THE POLICY
The Board of Directors on its own and/or on the recommendation of CSR Committee can
amend its policy as and when required deemed fit. Any or all provisions of CSR Policy
would be subjected to revision/amendment in accordance with the regulations on the subject
as may be issued from relevant statutory authorities, from time to time.
70
3.10. There are a number of policies for specific insurance needs. Some of
these include:
 Family income life insurance.

This is a decreasing term policy that provides a stated income for a fixed period of time, if the
insured person dies during the term of coverage. These payments continue until the end of a
time period specified when the policy is purchased. Few Life Insurance policies are:
01. Whole life policies
 Cover the insured for life. The insured does not receive money while he is
alive; the nominee receives the sum assured plus bonus upon death of the
insured.
02. Endowment policies
 Cover the insured for a specific period. The insured receives money on
survival of the term and is not covered thereafter.
03. Money back policies
 The nominee receives money immediately on death of the insured. On survival
the insured receives money at regular intervals during the term. These policies
cost more than endowment with profit policies.
04. Annuities / Children's policies
 The nominee receives a guaranteed amount of money at a pre-determined time
and not immediately on death of the insured. On survival the insured receives
money at the same pre-determined time. These policies are best suited for
planning children's future education and marriage costs.
05. Pension schemes

 Are policies that provide benefits to the insured only upon retirement. If the
insured dies during the term of the policy, his nominee would receive the
benefits either as a lump sum or as a pension every month. Since a single
policy cannot meet all the insurance objectives, one should have a portfolio of
policies covering all the needs
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06. Family insurance:
Awhile life policy that insures all the members of an immediate family husband, wife
and children. Usually the coverage is sold in units per person, with the primary wage-
earner insured for the greatest amount
07. Senior life insurance:

Also known as graded death benefit plans, they provide for a graded amount to
be paid to the beneficiary. For example, in each of the first three to five years after the
insured dies, the death benefit slowly increases. After that period, the entire death
benefit is paid to the beneficiary. This might be appropriate if the beneficiary is not
able to handle a large amount of money soon after the death, but would be in a better
position to handle it a few years later.
08. Juvenile insurance.

This is life insurance on a child. Coverage is paid for by an adult, usually the parents
or guardians. Such policies are not considered traditional life insurance because the
child is not producing an income that needs to be protected. However, by buying the
policy when the child is young, the parents are able to lock in an extremely low
premium rate and allow many more years of tax-deferred cash value buildup 325.
09. Credit life insurance.

This insurance is designed to pay off the balance of a loan if you die before you have
repaid it. Credit life insurance is available for many kinds of loans including student
loans, auto loans, farm equipment loans, furniture and other personal loans including
credit cards. Credit life insurance can be purchased by an individual. Usually it is sold
by financial institutions making loans, like banks, to borrowers at the time they take
out the loan. If a borrower dies, the proceeds of the policy repay the loan directly to
the lender or creditor.6.
10. Mortgage insurance

This decreasing term coverage is designed to pay off the unpaid balance of mortgage
if you die before the mortgage is paid off. Premiums are generally level throughout
72
the term of the policy. The policy is usually independent of the mortgage, meaning
that the financial institution granting the mortgage is separate from the insurance
company issuing the policy. The proceeds of the policy are paid to the beneficiaries of
the policy, not the mortgage company. The beneficiary is not required to use the
proceeds to pay off the mortgage
11. Annuity
An annuity is a form of insurance that enables you to save for your retirement.
Basically, you give the insurance company money for a certain period of time, and
then after you retire they will pay you a certain amount of money every year until you
die. There are many different forms of annuities. . Most people who buy annuities are
55 or older
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3.11. There are many Life Insurance Companies like
1. LIFE INSURANCE CORPORATION OF INDIA
2. BAJAJ ALLIANZ LIFE INSURANCE COMPANY
3. ICICI PRUDENTIAL LIFE INSURANCE COMPANY
4. HDFC STANDARD LIFE INSURANCE COMPANY
5. BIRLA SUN-LIFE INSURANCE COMPANYING
6. VYSYA LIFE INSURANCE COMPANYMETLIFE INSURANCE
COMPANY
7. TATA AIG LIFE INSURANCE COMPANY
8. MAX NEW YORK LIFE INSURANCE COMPANYOM
9. KOTAK MAHINDRA LIFE INSURANCE COMPANY
74
3.12. AWARDS OF THE COMPANY
Insurance Company is a standalone health insurance provider in the market. The company
was established with an objective to enable individuals enjoy the benefits of a health
insurance policy and so the company took upon itself the task of developing and launching
health insurance plans which are not only innovative but also cheap. Due to its dynamic
policies, Star Health succeeded in its objectives and won awards and accolades recognizing
its work. Some of the popular awards won by the company are as follows:
 Claims Service Company of the Year award in 2014 for rendering good servicing of
claims
 Corporate Excellence Awards also in the same year
 Best Claim Settlement Process Company in 2015
 Best Health Insurance Provider of the Year 2015-16 by Business Today, Money
Today Financial Awards.
 Other than winning awards, the company also made tremendous progress in financial
sense by developing its business. Some of the company’s achievements include the
following:
 It was the first standalone health insurance provider in its segments followed later by
other companies.
 As per the data collected by the General Insurance Council for the year ended 31st
March 2015, Star Health was the top private standalone health insurer in terms of the
premium underwritten. The net premium underwritten stood at Rs.1439.27 cores with
a gross written premium of Rs.275.8 cores. This made the company grow by 30%
ever since its inception in 2006.
 As in 2015, the company had a pan India presence through 900 outlets.
 In April 2016, the company crossed the Rs.2000 core premium mark and in the
quarter ended June 2016, the premium earned by the company stood at about Rs.3680
cores.
 Besides offering basic health insurance which is unique in terms of their features,
certain specialized plans are also offered by the company which is unique in the
health insurance segment too. Some of the popular plans of the company include:
 Family Health Optima Insurance Plan – a comprehensive health insurance plan for the
whole family
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 Senior Citizens Red Carpet Health Insurance Policy – a senior citizen health plan for
individual aged 60 years and above
 Med classic Insurance Policy – another comprehensive health insurance plan
 Super Surplus Insurance Policy – a top-up plan which increases the coverage at low
rates of premiums
 Diabetes Safe Insurance Policy – a specialized plan designed for diabetics
 Star Cardiac Care Insurance Policy – a plan designed for cardiac patients
3.13. Highlights:
 India’s First Stand-Alone Health Insurance Company
 Pan India Presence With More Than 400+ Branch Offices
 Cashless Hospitalization And Reimbursement Facility In Our Large Network Base

With More Than 8200+ Hospitals Across India
 Hassle-free and customer-friendly direct claim settlement without intervention of

TPA
 W.H.O Award Of Excellence 2017 from the former Honorable President of India Shri
Pranab Mukherjee
 Best Health Insurance Provider Of The Year - Business Today, Money Today
Financial Awards 2016-2017
 Awarded As The ‘Claims Service Company Of The Year, 2014’, Beating 28 General
Insurance Companies At The Indian Insurance Award
 Rated Best Claim Settlement Insurer – Hindustan Mars Survey
 Wide Range Of Health Insurance Products From Family Floater Schemes To Senior
Citizen Health Coverage
76
Personalized Doctor Visit For All Customers Getting Hospitalized
Amendment/Review The company shall review the policy on yearly basis and place before
the Board and Board of Directors for approval.
 Insurance Company is a standalone health insurance provider in the market. The

company was established with an objective to enable individuals enjoy the benefits of
a health insurance policy and so the company took upon itself the task of developing
and launching health insurance plans which are not only innovative but also cheap.
Due to its dynamic policies, Star Health succeeded in its objectives and won awards
and accolades recognizing its work. Some of the popular awards won by the company
are as follows:
 Claims Service Company of the Year award in 2014 for rendering good servicing of
claims
 Corporate Excellence Awards also in the same year
 Best Claim Settlement Process Company in 2015
 Best Health Insurance Provider of the Year 2015-16 by Business Today, Money
Today Financial Awards.
 Other than winning awards, the company also made tremendous progress in financial
sense by developing its business. Some of the company’s achievements include the
following:
 It was the first standalone health insurance provider in its segments followed later by
other companies.
 As per the data collected by the General Insurance Council for the year ended 31st
March 2015, Star Health was the top private standalone health insurer in terms of the
premium underwritten. The net premium underwritten stood at Rs.1439.27 cores with
a gross written premium of Rs.275.8 cores. This made the company grow by
30% ever since its inception in 2006.

 As in 2015, the company had a pan India presence through 900 outlets.
77
 In April 2016, the company crossed the Rs.2000 core premium mark and
in the quarter ended June 2016, the premium earned by the company
stood at about Rs.3680 cores.
 Besides offering basic health insurance which is unique in terms of their
features, certain specialized plans are also offered by the company which
is unique in the health insurance segment too. Some of the popular plans
of the company include:
 Family Health Optima Insurance Plan – a comprehensive health
insurance plan for the whole family
 Senior Citizens Red Carpet Health Insurance Policy – a senior citizen
health plan for individual aged 60 years and above
 Med classic Insurance Policy – another comprehensive health insurance
plan
 Super Surplus Insurance Policy – a top-up plan which increases the
coverage at low rates of premiums
 Diabetes Safe Insurance Policy – a specialized plan designed for diabetics
 Star Cardiac Care Insurance Policy – a plan designed for cardiac patient
 Bangalore: Star Health and Allied Insurance Co. Ltd is one of the largest
private insurance players in India. Company started its operations in 2006 and has
successfully expanded its presence across the country through a network base of 300
offices along with 600 one-man offices.
With Rs 2000 core premium generation in fiscal 2015-16, company services around 1.5
million customers through 6000 plus hospitals offering cashless health services.
Given its growing customer base and nationwide reach, company relies on a variety of
timely generated reports that helps in taking accurate business decisions ranging from
claims controls to product development.
However these reports generated through a BI tool were heavily vendor dependant and
78
lacked flexibility and agility in terms of quick report generation and accurate time
estimation.
“We had been using an extremely vendor-dependent BI (business intelligence) tool. It

was thus difficult to accurately estimate report generation time and there was no
flexibility to generate reports as required, which made our analytics and reporting
processes much slower and costlier,” says Sethuraman Kannan, Vice President – IT,
Health and Allied Insurance.
The limited flexibility of vendor driven BI tool was impacting company’s key business
functions particularly quick decision making and executing others processes like claims
management and issuing new policies.
Initially company had used Microsoft Excel but around 2010 it decided to invest in a BI
platform in a bid to make data analysis easier. Although the new tool was customizable
but still it wasn’t a holistic product, so company had to work closely with the vendor to
generate each report, according to Kannan.
Further, “It was tough for the company to accurately estimate timelines for the generation
of each report and to anticipate the impact on other reports in the pipeline. Dependency
on the vendor slowed down processes and drove up costs,” Kannan adds.
Hence it wanted a solution that reduces vendor dependency as well as provides more
functionalities and controls for various business processes as per the requirements.
“We rely heavily on data analytics to speed up decision making process relating to claims
management as well as on pricing and modeling of new policies. Also depend on data
analysis to generate information that has to be presented to the regulator as part of
regulatory compliance,” Kannan explains about company’s business function needs.
The insurer was in need of a solution that addressed all its business functions needs. For
instance, the solution should able help the claims department in managing the claims.
“They need information on claims trend to analyze factors such as performance of
79
network hospitals with respect to turnaround times, costs, etc., analysis of emergence of
claims under different topographies and age groups, and also to analyze the incurred
claims ratio against the premium procured,” points out Kannan.
Overall company was in search of a tool that matched its business requisites such as quick
and accurate information, linking of multiple data sources, report generation and its
movement.
Given this situation, company decided to replace the old system with a new one in 2014
by appointing a consultant to find a suitable tool for ETL (Extract, Transform and Load)
and BI functions. “An elaborate study was done and vendors in each category were
shortlisted which led us to Tableau,” informs Kannan.
After selecting Tableau’s software, an eight member joint team from Bodhtree Consulting
and Star Health carried out the software implementation in four months’ time. The testing
of was done during the December first week 2014 and finally it was launched into
production in January 2015.
“The underlying technology for Tableau is a patented visual query language (VizQL) that
simultaneously describes how to query data and present it visually. The result is a
fundamentally new way of interacting with databases and spreadsheets,” Kannan
observes.
Since the tool was implemented, it has benefited the company in many ways. Tableau’s
simple user-friendly interface has relieved MISA team from the pressure of generating
reports for users. Now the users are able to generate reports by themselves without
depending on vendor’s support, which has helped to lower company’s operational costs.
Also, the user friendly feature has made it possible to filter and choose the exact report as
required and today close to 400 staffs interact and view Tableau visualizations built on up
to 70 million rows of data (800GB), says Kannan.
Today, company’s five member team takes care of all data requirements and builds data
visualizations on the Tableau Desktop. “Reduced dependency on the vendor has
80
translated to more processes and cost efficiency. Overall all, we feel self-sufficient with
the ease of use and customization features that Tableau has to offer,” concludes Kannan.
81
CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION

INTRODUCTION
Analysis means the computation of certain idea or measuring along with searching for
patterns of relationship that among that exist among the data groups. Analysis, particularly in
case of survey of experimental data, involves estimating the values of unknown parameters of
the population and testing of hypothesis for drawing inferences. Analysis may, the therefore
be categorized as descriptive analysis and inferential analysis. Inferential analysis often
known as statistical analysis.
Descriptive analysis is largely the study of distributions of one variable. The study
provides with profile of companies, work group, persons and other subjects on any of a
multiple of characteristics such as size, composition, efficiency preferences.
Interpretation can be conceived of a part of analysis. The task oh interpretation has
two major aspects viz. the effort establish continuity in establishment of some explanatory
concepts. It connects the finds with the available material in a particular area of research.
82
TABLE- 4.1
CLASSIFICATION ACCORDING TO GENDER
S. No Gender No. of. Respondents Percentage
1. Male 97 64.7%
2. Female 53 35.3
Total 150 100%
Source: Primary Data

The above table shows the classification of the respondents on the basic of their
gender. Out of 150 respondents, 64.7% of them are male and 35.3% of the respondents are
female.
Hence the majority of the respondents are male respondents of 64.7%.
83
CHART- 4.1
CLASSIFICATION ACCORDING TO GENDER
70.00% 64.70%
60.00%
50.00%
PERCENTAGE
40.00% 35.30%
30.00% Percentage
20.00%
10.00%
0.00%
Male Female
GRNDER
84
TABLE- 4.2
CLASSIFICATION ACCORDING TO AGE
S. No Age level No. of. Respondents Percentage
1. Below 20 years 54 36%
2. 21-40 years 18 12%
3. 41-60 years 70 46.6%
4. Above 60 years 8 5.4%
Total 150 100%
85
Sources: Primary Data
The above table it is clear that 36% of the respondents belong to the age group of up
to below 20 years, 46.6% of respondents are in the age group of 21- 40 years and 12% of the
respondents are in the age group of 41-60 years. Only 5.4% of the respondents belong to the
above 40 years age group majority of respondents.
Hence the majority of the respondents belong to the 46.6% respondents are in the age
group of 41- 60 years
CHART-4.2
CLASSIFICATION ACCORDING TO AGE
ACCORDING TO AGE
50% 47%
45%
40%
36%
35%
30%
25%
20%
15% 12.00%
10%
6%
5%
0%
Below 20 years 21-40 years 41-60 years Above 60 years
Percentage No. of. Respondents
86
TABLE – 4.3
CLASSIFICATION ACCORDING TO EDUCATIONAL
QUALIFICATION
S. No Educational No. of. Respondents Percentage

qualification
1.
SSC 10 6.6%
2.
HSSC 37 24.66%
3.
Graduate 28 18.7%
4. Post graduate 17
11.33%
5. Professional
37 24.6%
6. Other (specify)
21 14%
87
Total 150 100%

The above table gives detailed study of this literacy level of respondents. From the above
table it is evident that out of 150 sample respondents. 6.6%of the respondents are SSC Level,
24.66% of the respondents under HSSC, 18.7%of the respondents are graduate, 24.6% of the
respondents are professional, 11.33%of the respondents are Post graduate, 14% of the
respondents are Other(specify)
The majority of the respondents are under HSSC, Professional level of 50%.
TABLE- 4.3
CLASSIFICATION ACCORDING TO EDUCATIONAL
QUALIFICATION
EDUCATIONAL QUALIFICATION
30%
25%
20%
15%
24.66% 25%
10% 18.70%
14%
5% 11.33%
7%
0%
SCC HSSC Graduate Post Graduate Illiterate Other
No. of. Respondents
88
TABLE- 4.4
CLASSIFICATION ACCORDING TO MATERIAL STATUS
S. No Material status No. of. Respondents Percentage
1. Married 46 30.6%
2. Unmarried 104 69.4%
Total 150 100%
Source: Primary data

The above table shows the classification of the respondents on the basic of their
material status. Out of 150 respondents, 30.6% of them are married and 69.4% of respondents
are unmarried.
Hence the majority of the respondents are unmarried of 69.4%.
89
CHART- 4.4
CLASSIFICATION ACCORDING TO MATERIAL STATUS
80.00%
69.40%
70.00%
60.00%
50.00%
PERCENTGE
40.00%
30.60% Percentage
30.00% NO. of. Respondents
20.00%
10.00%
0.00%
Married Unmarried
MARTIAL STATUS
90
TABLE- 4.5
CLASSIFICATION ACCORDING TO OCCUPATION LEVEL
S. No Occupation level No. of. Respondents Percentage
1. Govt. Employee 64 42.6%
2. Self. Employee 20 13.4%
3. Labor 22 14.6%
4. Own Businessman 24 16%
5. Professional 20 13.4%
91
Total 150 100%

From above table it is clear that majority of be respondents belong to the students of
42.6% while 13.4% belong to the Govt. employee, 14.6% belong to private employee, 16%
belong to businessman and 13.4% of the respondents belong to the professional.
Hence the majority of the respondents are students of 42.6%
CHART- 4.5
CLASSIFICATION ACCORDING TO OCCUPATION LEVEL
13.40%
16% 42.60%
Students
Govt. Empolee
Private Empolyee
14.60%
Businessman
13.40% Professional
92
TABLE- 4.6
CLASSIFICATION ACCORDING TO FAMILY TYPE
S. No Family Type No. of. Respondents Percentage
1. Joint family 44 29.33%
2. Single 74 70.66%
Total 150 100%
From the above table reveals 29.33% of the respondents Joint family 70.66%of the
respondents are Single
93
Hence the majority of the respondent family type are Single of 70.66%
CHART- 4.6
CLASSIFICATION ACCORDING TO FAMILY TYPE
80.00%
70.00%
60.00%
50.00%
PERCENTAGE
40.00%
70.66%
30.00%
20.00%
29.33%
10.00%
0.00%
joint family single
FAMILY TYPE
94
TABLE- 4.7
CLASSIFICATION ACCORDING TO INCOME PER MONTH
S. No Income No. of. Respondents Percentage
1. Below Rs.50,000 57 38%
2. Rs.50,000-1,00,000 28 18.66%
3. Rs.1,00,000-1,500,000 20 13.4%
4. Rs.1,50,0000-2,00,000 18 12%
95
5. Above 2,00,000 27 18%
Total 150 100%

The above table reveals that 38% of the respondents belong to income level Below
Rs.50,000, 18.66%of the respondents belong to income level Rs.50,000-1,00,000,13.4% of
the respondents belong to income level Rs.1,00,000-1,500,000 while only 12% of the
respondents belong to income level Rs.1,50,0000-2,00,000 , 18% of the respondents belong
to income level Above 2,00,000
Hence the majority of the respondent income level of Below Rs.50,000of
38%.
CHART- 4.7
CLASSIFICATION ACCORDING TO INCOME PER MONTH
40% 38%
35%
30%
percentage
25%
19%
20%
13.40% 12% 12%
15%
10% No.of. Respondents
5%
0%
INCOME PER MONTH
96
97
TABLE- 4.8
CLASSIFICATION ACCORDING TO HEALTH INSURANCE POLICY
S. No Options No. of. Respondents Percentage
1. Yes 102 68%
2. No 48 32%
Total 150 100

From the above table, it inferred that 68% respondents are says yes to all members are
using the same brand and 32% respondents are say no to all members are using the same
brand.
Hence the majority of the respondents are says yes to all members are using the health
insurance policy 68%.
98
CHART- 4.8
CLASSIFICATION ACCORDING TO HEALTH INSURANCE POLICY
No 0%
32%
Yes
68%
Yes No
99
TABLE- 4.9
CLASSIFICATION ACCORDING TO INSURER
S. No Insurer No. of. Respondents Percentage
1. Public 54 36%
2. Private 70 46.6%
3. Any Other 27 17.33%
Total 150 100%

The above table reveals that 36%of the respondents belong to public, 46.6%of the
respondents belong to Private, and 17.33% of the respondents belong to Any other.
Hence the majority of the respondents belong to Private46.6%.
100
CHART- 4.9
CLASSIFICATION ACCORDING TO INSURER
50% 36.6%
45%
40% 36%
35%
Percentage
30%
25%
20% 17.33%
15%
10%
5%
0%
Public Private Any Other
Income per month
Percentage Percentage2 No.of. Respondents
101
TABLE- 4.10
CLASSIFICATION ACCORDING TO PRIVATE COMPANY
S. No Private Company No. of. Respondents Percentage
1 The Star Health 24 12.6%

Insurance
2 Bajaj Heath Insurance 50 50%
3 TATA Health 22 20%

Insurance
4 ICICI Health 24 16%

Insurance
5. Any other specify 30 13.4%
Total 150 100%

From the above table, it 12.6% of the respondents are using The Star Health
Insurance,50% of the respondents are using Bajaj Heath Insurance, 20% of the respondents
are using TATA Health Insurance and 16%of the respondents are using ICICI Health
Insurance , 13.4% of the respondents are using Any other specify
Hence the majority respondents are using Bajaj Heath Insurance 50%
102
CHART- 4.10
CLASSIFICATION ACCORDING TO PRIVATE COMPANY
45.00% 43%
40.00%
35.00%
30.00%
PERCENTAGE
25.00%
20.00%
16.00% 16.00%
15%
15.00% 13.40%
10.00%
5.00%
0.00%
The Star Health Bajaj Heath TATA Health ICICI Health Any other specify
Insurance Insurance Insurance Insurance
PRIVATE COMPANY
103
TABLE- 4.11
CLASSIFICATION ACCORDING TOSOURCES OF INFORMTION
Source Of
Information
S. No No. of. Respondents Percentage
1. TV 20 13.4%
2. Newspaper 15 10%
3. Agent 75 50%
4. Tax consultants and 10 6.6%

Doctors
5. Other (specify) 30 20%
Total 150 100%

The above table reveals that 13.4%of the respondents got source of Information from
TV,10%of the respondents got source of Information from Newspaper,50% of the
respondents got source of Information from Agent 6.6% of the respondents got source of
Information from Tax consultants and Doctors, 20% of the respondents got source of
Information from Other (specify)
Hence the majority respondents got source of Information from Agent 50%
104
CHART- 4.11
CLASSIFICATION ACCORDING TOSOURCES OF INFORMTION
50%
44%
45%
40%
35%
30%
Percentage
25%
20% 18%
16%
15% 12%
10%
10%
5%
0%
TV Newspaper Agent Tax consultants Other (specify)
and Doctors
sourec of information
105
TABLE- 4.12
CLASSIFICATION ACCORDING TO TYPE OF HEALTH INSURANCE

POLICY
S. No TYPE OF POLICY No. of. Respondents Percentage
1 Individual Health 105 70%

Insurance
Group Health
Insurance
2 18 12%
Family Floater Health

Insurance
3 20 13.4%
4 Other (specify) 7 4.6%
Total 100 100%

From the above table, 70%of the respondents are using Individual Health Insurance,
12%of the respondents are using Group Health Insurance, 13.4% of the respondents are
Family Floater Health Insurance, and 4.6%of the respondents are using Other (specify).
Hence the majority of the respondents are using Individual Health Insurance 70%
106
CHART- 4.12
CLASSIFICATION ACCORDING TO TYPE OF HEALTH INSURANCE

POLICY
0.8
70%
0.7
0.6
0.5
PERCENTAGE
0.4
Column1
0.3 PERCENTAGE
0.2
12% 13.40%
0.1
4.60%
0
Individual Health Group Health Family Floater Other (specify
Insurance Insurance Health Insurance
Type Of Health Insurance Policy
107
TABLE- 4.13
CLASSIFICATION ACCORDING TO PERSUADED YOU TO

PURCHASE THE POLICY
S. No Advertisement No. of. Respondents Percentage
1. Insurance officials’ 105 70%
2. Advertisement 18 12%
3. Colleagues 20 13.4%
4. Other (specify) 7 4.6%
Total 150 100%

From the above table, it is clear that majority of the respondents 70% are Insurance
officials is effective, 12% of the respondents are says advertisement is effective, 13.4%of the
respondents are says Colleagues is effective, 4.6% of the respondents are says radio
advertisement is effective.
Hence 70% majority of the respondents are says Television advertisement is effective.
108
CHART- 4.13
CLASSIFICATION ACCORDING TO PERSUADED YOU TO

PURCHASE THE POLICY
80.00%
70.00%
70.00%
60.00%
50.00%
PERCENTAGE
40.00%
Percentage
30.00% No. of. Respondents
20.00%
12% 13%
10.00% 4.60%
0.00%
Insurance officials’r Advertisement
persuaded you to purchase the policy
109
TABLE- 4.14
CLASSIFICATION ACCORDING TO SEEKING HEALTH
INSURANCE COVERAGE
S. No Opinion No. of. Respondents Percentage
Insurance Agent
Seeking You Out
1. 104 69.4%
2. You Seeking Out 64 30.6%

Insurance Agent
Total 150 100%

From the above table it inferred that 69.4% of the respondents are says Insurance
Agent Seeking You Out for buying and 30.6%of the respondents are says You Seeking Out
Insurance Agent.
Hence the majority of the respondents say Insurance Agent Seeking You Out 69.4%
110
CHART- 4.14
CLASSIFICATION ACCORDING TO SEEKING HEALTH
INSURANCE COVERAGE
HEALTH INSURANCE COVERAGE
31%
Insurance Agent Seeking You

Out
69% You Seeking Out Insurance
Agent
111
TABLE- 4.15
CLASSIFICATION ACCORDING TO SERVICES PROVIDED BY THE
INSURANCE COMPANIED ARE DELIVERED EFFECTIVELY
1. Yes 85 56.66%
2. No 64 43.3%
Total 150 100%

From the above table, it inferred that 56.66%respondents are says yes to the services
provided in the company and 43.3%respondents are say no to all members are using the same
brand.
Hence the majority of the respondents are says yes to the services provided in the
company 56.66%
112
CHART- 4.15
CLASSIFICATION ACCORDING TO SERVICES PROVIDED BY THE
INSURANCE COMPANIED ARE DELIVERED EFFECTIVELY
57%
60%
50% 43%
40%
percentage
30%
20%
10%
0%
YES NO
Services provided by the insurance company
113
TABLE- 4.16
CLASSIFICATION ACCORDING TO THE PROMOTIONAL EFFORTS
BEING TAKEN BY INSURANCE COMPANY ARE SUFFICIENT
1. Yes 100 66.66%
2. No 50 33.33%
Total 150 100%

From the above table, it inferred that 66.66%respondents are says yes to the services
provided in the company and 33.33%respondents are say no to all members are using the
same brand.
Hence the majority of the respondents are says yes to the services provided in the
company 66.66%
114
CHART- 4.16
CLASSIFICATION ACCORDING TO THE PROMOTIONAL EFFORTS
BEING TAKEN BY INSURANCE COMPANY ARE SUFFICIENT
70% 67%
60%
50%
percentage
40%
33%
YES
30%
NO
20%
10%
0%
YES NO
promotional efforts
115
TABLE- 4.17
CLASSIFICATION ACCORDING AWARENESS OF HEALTH INSURANCE CAN
BE INCREASED
1.
Newspaper 10 66.66%
2.
Advertisement 28 18.7%
3. Incentive to policy
holders
37 24.6%
4.
Internet
17 11.33%
5. Road shows, fare&

festivals
21 14.4%
6. Introducing saving
linked insurance
37 24.4%
Total
150 100%

From the above table reveals 66.66%of the respondents are Newspaper,
18.6% of the respondents are Advertisement, 24.6%of the respondents are Incentive to
policy holders, 11.33%of the respondents are Internet 11.33%of the respondents are Road
shows, fare& festivals
Hence the majority of the respondent are Newspaper 66.66%.
116
CHART- 4.17
CLASSIFICATION ACCORDING TO AWARENESS OF HEALTH
INSURANCE CAN BE INCREASED
30.00%
24.60% 24.40%
25.00%
20.00% 18.60%
14.40%
15.00%
11.33%
10.00%
6.60%
5.00%
0.00%
Newspaper Advertisement Incentive to Internet Road shows, Introducing
policy holders fare& festivals saving linked
insurance
percentage
117
TABLE- 4.18
CLASSIFICATION ACCORDING TO POLICY HAS COVERED ALL

FAMILY MEMBERS
1. Yes 48 32%
2. No 102 68%
Total 150 100

From the above table, it inferred that 32%respondents are says yes to all members are
using the same brand and 68% respondents are say no to all members are using the same
brand.
Hence the majority of the respondents are says yes to all members 68%.
118
CHART- 4.18
CLASSIFICATION ACCORDING TO POLICY HAS COVERED ALL

FAMILY MEMBERS
POLICY HAS COVERED ALL FAMILY MEMBERS
70%
60%
50%
40%
68%
30%
20% 32%
10%
0%
Yes No
Yes No
119
TABLE- 4.19
CLASSIFICATION ACCORDING TO ANNUAL PREMIUM
S. No Income No. of. Respondents Percentage
1. Below Rs.5,000 26 17.3%
2. Rs.5,000-10,000 75 50%
3. Rs.10,000-25,000 28 18.4%
4. Above Rs.25,000 21 14%
Total 150 100%

The above table reveals that 17.3% of the respondents belong to annual premium
Below Rs.5, 000, 50%of the respondents belong to annual premium Rs.5,000-10,000,
18.4%of the respondents belong to annual premium Rs.10,000-25,000 while only 14% of the
respondents belong to annual premium Above Rs.25,000.
Hence the majority of the respondent 50% to annual premium Rs.5,000-10,000
120
CHART- 4.19
CLASSIFICATION ACCORDING TO ANNUAL PREMIUM
60%
36.6%
50%
40%
Percentage
30%
17% 18.40%
20%
14%
10%
0%
Below Rs.50,00 Rs.5,000-10,000 Rs.10,000-25,000 Above Rs.25,000
ANNUAL PREMIUM
Percentag
121
TABLE- 4.20
CLASSIFICATION ACCORDING TO COVERAGE (SI) SUM INSURED
S. No (SI) No. of. Respondents Percentage
1. Below 1 lakhs 57 38%
2. 1-5 lakhs 55 36.6%
3. 5-10 lakhs 20 13.4%
4. Above 10 lakhs 18 12%
Total 150 100%

The above table reveals that 38% of the respondents belong to in SI below 1 lakhs,
36.6% of the respondents belong to SI 1-5 lakhs, 13.4% of the respondents belong to SI 5-10
lakhs while only 12% of the respondents belong to income level Above 10 lakhs.
Hence the majority of the respondent SI below 1 lakhs of 38%.
122
CHART- 4.20
CLASSIFICATION ACCORDING TO COVERAGE (SI) SUM INSURED
40% 38%
36.6%
35%
30%
25%
Percentage
20%
15% 13.40%
12%
10%
5%
0%
Below 1 lakhs 1-5 lakhs 5-10 lakhs Above Rs.30000
COVERAGE (SI) SUM INSURED
Percentage
123
TABLE- 4.21
CLASSIFICATION ACCORDING TO FREE HEALTH CHECK-UP
1. Yes 102 68%
2. No 48 32%
Total 150 100

From the above table, it inferred that 68% respondents are says yes to free health
check up and 32% respondents are say no free health check up
Hence the majority of the respondents are says yes to free health check up 68%.
124
CHART- 4.21
CLASSIFICATION ACCORDING TO FREE HEALTH CHECK-UP
0%
No
32%
Yes
68%
Yes No
125
TABLE- 4.22
CLASSIFICATION ACCORDING TO SERVICES OFFERED BY THE

STAR HEALTH INSURANCE
S. No Services Offered No. of. Respondents Percentage
1. Excellence 20 13.4%
2. Good 18 12%
3. Average 105 70%
4. Very Poor 7 4.6%
Total 150 100%

From the above table, it is clear that majority of the respondents 13.4% are says
Services offered is excellence, 12%of the respondents are say Services offered is good,
70%of the respondents are says Services offered is average, 4.6% of the respondents are says
services offered is Very Poor
Hence majority of the respondents are says that services offered is average 70%
126
CHART- 4.22
CLASSIFICATION ACCORDING TO SERVICES OFFERED BY THE

80.00%
70%
70.00%
60.00%
50.00%
Percentage
40.00%
30.00%
20.00% 13.40% 12%

10.00% 4.60%
0.00%
Excellence Good Average Very Poor
SERVICES OFFERED
Percentage
127
TABLE- 4.23
CLASSIFICATION ACCORDING TO CHOSEN THE PRODUCT OF

S. No Advertisement No. of. Respondents Percentage
1. Brand Value 57 38.1%
2. Nearby Area 55 36.6%
3. Govt. company 20 13.4%
4. Others 18 12.6%
Total 150 100%

From the above table, it is clear that majority of the respondents 38.1% are says Brand
Value is effective, 36.6%of the respondents are says newspaper Nearby Area is effective,
13.4% of the respondents are says Govt. company is effective, 12.6%of the respondents are
says others is effective.
Hence majority of the respondents are says Brand Value is effective70%.
128
CHART- 4.23
CLASSIFICATION ACCORDING TO CHOSEN THE PRODUCT OF

80.00%
70%
70.00%
60.00%
50.00%
Percentage
40.00%
Percentage
30.00% No. of. Respondents
20.00%
13.40% 12%
10.00% 4.60%
0.00%
Newspaper Banners Television Radio
CHOSEN THE PRODUCT OF STAR HEALTH INSURANCE
129
TABLE- 4.24
CLASSIFICATION ACCORDING TO SURVEYOR REACH
S. No Surveyor Reach No. of. Respondents Percentage
1. Within 3 hours 28 18.4%
2. 3-8 hours 75 50%
3. 15-30 days 26 17.0%
4. above 30 days 21 14.6%
Total 150 100%

From the above table, it is clear that majority of the respondents 18.4%are says
Within 3 hours effective, 50%of the respondents are says 3-8 hours
is effective, 17.0% of the respondents are says 15-30 days is effective, 14.6% of the
respondents are says above 30 days is effective.
Hence majority of the respondents are says 3-8 hours is effective and 50%.
130
CHART- 4.24
CLASSIFICATION ACCORDING TO SURVEYOR REACH
60.00%
50%
50.00%
40.00%
PERCENTAGE
30.00%
Percentage
20.00% 18.40% 17%
14.60%
10.00%
0.00%
Within 3 hours 3-8 hours 15-30 days above 30 days
SURVEYOR REACH
131
TABLE- 4.25
CLASSIFICATION ACCORDING TO SATISFICATION LEVEL
ABOUT PREMIUM AMOUNT
S. No Satisfaction level No. of. Respondents Percentage
1. Satisfied 72 48%
2. Highly satisfied 51 34%
3. Neutral 24 16%
4. Dissatisfied 3 2%
Total 150 100%

From the above table, it revealed that 48% of the respondents are satisfied, 34% of the
respondents are highly satisfied, 16% of the respondents are neutral, 2% of the respondents
are dissatisfied.
Hence the majority of the respondents are satisfied with premium amount of 48%.
132
CHART- 4.25
CLASSIFICATION ACCORDING TO PREMIUM AMOUNT
60%
50% 48%
40%
Percentage
34%
30%
20% 16%
10%
2%
0%
Satisfied Highly satisfied Neutral Dissatisfied
Satisfaction level
133
TABLE- 4.26
ABOUT CLAIM SETTLEMENT
1. Satisfied 69 46%
3. Neutral 27 18%
Total 150 100%

are dissatisfied.
Hence the majority of the respondents are satisfied with claim settlement of the brand
of 46%.
134
CHART- 4.26
ABOUT CLAIM SETTLEMENT
6%, 6%
18%, 18%
46%, 46%
30%, 30%
Satisfied Higly satisfied Neutral Dissatisfied
135
TABLE- 4.27
ABOUT OFFER
1. Satisfied 75 50%
3. Neutral 24 17%
Total 150 100%

respondents are highly satisfied , 17% of the respondents are neutral, 10% of the respondents
are dissatisfied.
Hence the majority of the respondents are satisfied with offer of 50%.
136
CHART- 4.27
ABOUT OFFER
OFFERS
60%
50%
50%
40%
30% Percentage
24%
No. of. Respondents
20% 17%
10%
10%
0%
Satisfied Higly satisfied Neutral Dissatisfied
137
TABLE- 4.28
ABOUT DISCOUNT
1. Satisfied 60 60%
3. Neutral 12 8%
Total 150 100%

respondents are highly satisfied, 8% of the respondents are neutral, 2% of the respondents are
dissatisfied.
Hence the majority of the respondents are satisfied with discount 60%.
138
CHART- 4.28
ABOUTDISCOUNT
70%
60%
60%
50%
Percentage
40%
32%
30%
20%
10% 8%
0%
0%
Satisfied Highly satisfied Neutral dissatisfied
Satisfaction level
139
TABLE- 4.29
ABOUT TIME TAKEN FOR SETTLEMENT OF CLAIM
1. Satisfied 60 40%
3. Neutral 30 20%
Total 150 100%

are dissatisfied.
Hence the majority of the respondents are satisfied with settlement of claim of 40%.
140
CHART- 4.29
CLASSIFICATION ACCORDING TO TIME TAKEN FOR
SETTLEMENT OF CLAIM
TIME TAKEN FOR SETTLEMENT OF CLAIM

45%
40%
40%
35%
30%
percentage
25% 24%
20%
20%
16%
15%
10%
5%
0%
Satisfied Highly satisfied Neutral Dissatisfied
141
CHAPTER-5
142
CHAPTER-5
RESULTS AND FINDINGS SUGGESTION AND CONCULSION
FINDINGS
The findings of the study are as follows;
 Majority of the respondents are male respondents of 64.7%.
 The majority of the respondents belong to the 46.6% respondents are in the age group
of 41- 60 years
 The majority of the respondents are under HSSC, Professional level of 50%.
 The majority of the respondents are unmarried of 69.4%.
 The majority of the respondents are students of 42.6%.
 Majority of the respondent family type are Single of 70.66%
 The majority of the respondent income level of Below Rs.50,000of 38%.
 Majority of the respondents are says yes to all members are using the health insurance
policy 68%.
 The majority of the respondents belong to Private 46.6%.
 The majority of the respondents are using Bajaj Heath Insurance 50%.
 Majority of the respondents got source of Information from Agent 50%
 Majority of the respondents are using Individual Health Insurance 70%
 Majority of the respondents are say Television advertisement is effective70%.
 The majority of the respondents says Insurance Agent Seeking You Out 69.4%
 The majority of the respondents are says yes to the services provided in the company
56.66%
 The majority of the respondents are says yes to the services provided in the company
66.66%
 The majority of the respondents are says yes to all members 68%.
 Majority of the respondents are satisfied with 50% to annual premium Rs.5,000-
10,000.
 The majority of the respondent are satisfied with SI below 1 lakhs of 38%.
143
 The majority of the respondents are says yes to free health check up 68%.
 The majority of the respondents are says that services offered is average 70%
 The Majority of the respondents are says Brand Value is effective70%.
 The majority of the respondents are says 3-8 hours is effective and 50%.
 The majority of the respondents are satisfied with claim settlement of the brand of
46%.
 The majority of the respondents are satisfied with offer of 50%.
 The majority of the respondents are satisfied with discount 60%.
 The majority of the respondents are satisfied with settlement of claim of 40%.
144
5.2 SUGGESTIONS:
145
5.3 CONCLUSION
Effective deposit insurance is a pillar of a sound financial system. Yet, deposit
insurance is unlikely to work if the public does know about it or if the information or
perceptions the student has are incorrect. Student awareness of the deposit insurance system
therefore plays a significant role in ensuring that depositors are aware that their insured
deposits are safe. In turn, this knowledge can help contribute to financial stability. From our
study we conclude that the determinants of awareness of health insurance were: religion, type
of the family, education, occupation, annual income. Education, annual income, occupation
of the respondent and religion plays vital role of the Determinants of awareness of the health
insurance. Higher education and higher annual income increase awareness of health insurance
also will increase.
146
5.4. REFERENCE:
 Ahuja Rajeev, (2004), “Health Insurance for the poor”, Economic and Political
Weekly, July 10, pp.3171-78.
 Ahuja, R and A Narang (2005), “Emerging Trends in Health Insurance for Low-
income Groups”, Economic and Political Weekly, September 17.
 Anil Gumber and Veena Kulkarni, (2000). “Health Insurance in Informal Sector: Case
Study of Gujarat”. Economic and Political Weekly, September 30, PP.3607-13.
 B. Reshmi et al. (2007), Awareness of health insurance in a south Indian population –
a community-based study, Health and Population- Perspectives and Issues 30 (3):
177-188.
 Berman (1996). Health Care Expenditure in India in Monica Das gupta et al (ed..),
Health, Poverty and Development in India, Oxford University Press, Delhi, p.331-58
147
BIBLIOGRAPHY
To substantiate the study and finding we have referred the following books for
supporting materials.
Marketing management: S.A Shelekar, Himalaya publishing house, Mumbai.
Modern Marketing Principles and Practices: R.S.N PillaiBagavathi, S. Chant and
company Ltd.
Statistical Methodology: S.P Gupta, sultan Chant and sons, New Delhi.
Marketing by Dr. N. Rajan Nair, Sanjith R. Nair.
Marketing management: Dr. R.L. Varshney, Dr. S.L. Guptha, Sultan Chant
and sons, Educational Publishers, New Delhi.
WEBSITE
www.bloomberg.com
www.starhealth.in
www.irdai.gov.in
148
QUESTIONNAIRE
“A study on awareness of health insurance products, with reference to The Star Health
Insurance (p) Ltd., Namakkal (Dt).,
1) Name:___________________________
2) Gender
(a) Male (b) Female
3) Age:
(a) Below 20 Yr (b)21-40 Yr
(c)41-60Yr (d) Above 60Yr
4) Education:
(a)SSC (b) HSSC
(c)Graduate (d) Post graduate
(e)Illiterate (f) Other (specify)____________
5) Occupation:
(a)Govt .employed (b) Self employed
(c)Labour (d) Professional
(e)Own Business
6) Marital status:
(a) Single (b)Married
7) Type of family:
(a) Joint (b)Single
8) Income per annum (in Rs):
(a) Below 50,000 (b)50,000-10,000
(c) 10,000-1, 50,000 (d) 1,50,000 – 2,00,000
(e)Above2, 00,000.
9) Do you have health insurance policy?
(a) Yes (b)No
10) Who is your insurer?

(a) Public Company (b)Private Company
(c)Any other (specify) ________________
11) If private company who is your insurer?
(a)The star health insurance (p)Ltd (b)Bajaj Allianz health guard
(c) Tata Aig Life Insurance (d) ICICI Prudential Life Insurance
(e)Any other (specify)____________
12) If yes, what are the sources of information?

(a)TV (b) Newspaper
(c) Agent (d) Tax consultants and Doctors
(e) Other (specify) ____
149
13) What type of Health Insurance Policy you have?
(a)Individual Health Insurance (b) Group Health Insurance
(c)Family Floater Health Insurance (d) Other (specify)____________
14) Who persuaded you to purchase the policy?
(a)Insurance officials’ (b) Advertisement
(c)Colleagues (d) Other (specify)_________
15) What approach was adopted in seeking health insurance coverage?

(a)Insurance agent seeking you out (b) You seeking out insurance agent
16) Do you agree that the services provided by the insurance companied are delivered
effectively?
(a)Yes (b) No
17) Do you think the promotional efforts being taken by insurance company are
sufficient
(a)Yes (b) No
18) How the awareness of health insurance can be increased?
(a) Newspaper
(b) Advertisement
(c) Incentive to policy holders
(d) Internet
(e) Road shows, fare& festivals
(f) Introducing saving linked insurance
19) Whether your policy has covered all family members?
(a)Yes (b)No
20) What is your annual premium?

(a) Below 5,000 (b)5,000-10,000
(c)10,000-25,000 (d)Above 25,000
21) What is your coverage (SI) Sum Insured?

(a)Below 1lakh (b) 1-5 lakhs
(c) 5-10 lakhs (e) Above 10 lakhs.
22) Do you have free health Check-Up?
(a)Yes (b) No
23) How is the services offered by the Star Health Insurance?

(a)Excellence (b) Good
(c)Average (d) Very Poor
24) Why you have chosen the product of Star Health Insurance?
(a)Brand Value (b) Near by Area
(c)Govt. company (d) Others_____________________
150
25) How soon does the surveyor reach?
(a) Within 3 hours (b)3-8 hours
(c) 15-30 days (d) above 30 days
26) State your level of satisfaction towards the following factors of the star health
insurance
High Satisfied Neutral Dissatisfied
satisfied
(a) Premium
amount
(b) Claim
settlement
(c) Offers
(d) Discount
(e) Time Taken

for
settlement
of claim
151

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CONTENT

CHAPTER PARTICULARS PAGE NO

III. REVIW OF LITERATURE

VII. ANNEXURE QUESTIONNARIE

S. NO TABLE TITLE PAGE NO

01. CLASSIFICATION ACCORDING TO GENDER

02. CLASSIFICATION ACCORDING TO AGE

03. CLASSIFICATION ACCORDING TO

04. CLASSIFICATION ACCORDING TO

05. CLASSIFICATION ACCORDING TO

06. CLASSIFICATION ACCORDING TO FAMILY

07. CLASSIFICATION ACCORDING TO INCOME

08. CLASSIFICATION ACCORDING TO HEALTH

4.9 CLASSIFICATION ACCORDING TO INSURER

4.10 CLASSIFICATION ACCORDING TO

4.11 CLASSIFICATION ACCORDING TO

4.12 CLASSIFICATION ACCORDING TOTYPE OF

13. CLASSIFICATION ACCORDING TO

15. 4.15 CLASSIFICATION ACCORDING TO

16. 4.16 CLASSIFICATION ACCORDING TOTHE

17. 4.17 CLASSIFICATION ACCORDING

18. 4.18 CLASSIFICATION ACCORDING TO POLICY

19. 4.19 CLASSIFICATION ACCORDING TO ANNUAL

20. 4.20 CLASSIFICATION ACCORDING TO COVERAGE

21. 4.21 CLASSIFICATION ACCORDING TO FREE

23. 4.23 CLASSIFICATION ACCORDING TOCHOSEN

24. 4.24 CLASSIFICATION ACCORDING TOSURVEYOR

25. 4.25 CLASSIFICATION ACCORDING TO

26. 4.26 CLASSIFICATION ACCORDING TO

27. 4.27 CLASSIFICATION ACCORDING TO

28. 4.28 CLASSIFICATION ACCORDING TO

29. 4.29 CLASSIFICATION ACCORDING TO

Marketing is a buyer-oriented process involving the creation, communication, and delivery of

However, marketing is successful only when an organization’s mission, vision,

 Basic Marketing Concept – Getting the competitive edge

Marketing provides businesses with a competitive edge, since that is what

Businesses achieve this by convincing potential customers that their product is

Traditional marketing involves offline channels such as face-to-face selling, print

 Evolution of Marketing Concepts

Here is a brief overview of the evolution of marketing concepts.

 Marketing vs. Selling

In contrast, the marketing approach is buyer-oriented. It encompasses a broader range of

 Market research to uncover customer needs,

 The Marketing Plan:

 Marketing strategies for product/service mix, pricing, promotion, location and

 Any other information relevant to the marketing plan.

Consumer behavior refers to the psychological process that leads to a consumer’s

 Internal factors such as demographics, lifestyle, personality, motivation, information,

capture those markets.

Broadly, these can be classified as:

d) Socio cultural theories

 Indifference preference theory – developed by economist Wilfred Pareto, this is a more

Psychological Law of Consumption:

Postulated by Keynes, the Psychological Law of Consumption states that when

Stimulus response theory assumes that learning is a result of a person’s response to a

d) Socio cultural theories

 Factors affecting consumer behaviour

Role and Status

3.Personal factors 4.Psychological factors

Lifestyle and Personality Beliefs and Attitudes

Perception involves choosing, organizing and assimilating information for a meaningful

By introducing specially tailored campaigns, marketers attempt to change consumers’ attitude

Consumer Behaviour Case Study