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Lakshmi Narain College of Technology, (LNCT) Jabalpur: Rani Durgavati Vishwavidyalaya, Jabalpur
Lakshmi Narain College of Technology, (LNCT) Jabalpur: Rani Durgavati Vishwavidyalaya, Jabalpur
JABALPUR
Batch: 2016-18
Guided By
Mr. Shailesh Singh
Assistant Professor
Department of MBA
Submitted By
Monika Rai
Submitted to
I would like to thank Mr.Arvind Chouksey & Mr. Siddharth Rai (Director) and
Dr.M.R.Khare (Principal) of the college for their blessings, motivation and
encouragement.I am deeply indebted to Dr.Sanjay Pandey, Professor & Head,
Department of MBA for ensuring that I work diligently on my project on a continuous
basis.
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DECLARATION
I also declare that this project is the result of my own effort & has not been presented
to any other university or institution for the award of any degree or diploma.
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LAKSHMI NARIAN COLLEGE OF TECHNOLOGY JABALPUR
Date -:
Certificate
The facts and the figures embodied in this report are original and are not
substantially the same as one which have been submitted earlier for the award
of degree or diploma elsewhere.
Dr.Sanjay Pandey
Professor & Head
Dept. of MBA
LNCT Jabalpur
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TABLE OF CONTENT
1 Acknowledgement 2
2 Declaration 3
5 Table of Contents 6
6 Company Overview 7
7 Introduction to subject 9
8 Swot Analysis 26
9 Benefits 30
11 Research of Methodology 36
14 Questionnaire 46
15 Conclusions 50
16 Bibliography 51
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COMPANY OVERVIEW
Star Health and Allied Insurance Co Ltd commenced its operations in 2 006
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.
CAPITAL
We have built a promising path for our future with a capital base of Rs.733
crores. We have emerged as India’s first stand-alone Health Insurance Company,
dealing in personal accident, medi-claim and overseas travel insurance.
Tata Capital invested in the company in 2013, thus increasing the company
total capital to Rs5.49 billion
VISION:
To Become The Largest And Most Preferred Health Insurance Company In India.
To Provide Financial Security for Health Care Management
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MISSION:
PRODUCTS
Health insurance
Travel insurance
FEATURES
Intervention Of TPA
Health Insurance Company Of The Year 2015 - Indian Insurance Awards 2015
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INTRODUCTION
What is Insurance?
individual in the world and all activities connected with him/her, be it life, profession,
business, travel or any other pursuits are subject to unforeseen and uncalled for
hazards or dangers. The benefit that an individual enjoys in his life by owning a car
or a house or a factory can be snatched by sudden accident which can render even
the individual immobile, and his family vulnerable. At this critical juncture, only
insurance helps him not only to survive but recover his loss and continue his life in a
The concept of insurance is quite simple. People, who are in similar trade and
are exposed to the same risks, congregate and some to an agreement that if any
individual member suffers a loss, then the loss will be shared by others and
minimized in order to enable the individual member recover from the loss and cover
his ground. Similarly the different kinds of risks can be identified and separate
groups can be formed to counter such risks and reduce the impact to a manageable
proportion, in which the share could be collected from the members either after the
loss or in advance, at the time of admission to the group. This is an exemplary sign
of humanity and insurance therefore serves the mankind to a great extent; a point
most of the individuals tend to overlook, since monetary aspect is involved. Now
such is for tangible assets.The concept of insurance has been extended beyond the
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Exporters run the risk of importers in other country defaulting as well as
losses due to sudden fluctuations in the currency exchange rates, economic policies
turmoil. These risk are now insured. Doctors run the risk of being charged with
negligence and can subsequently liable for damages. The amount in questions can
be fairly large, beyond the capacity of individuals to bear. These are insured. Thus
singer, legs of a footballer can be insured, even though the advantage of spread may
of income from some source. If the property, which is the source of such income,
Permanently or temporarily, the income too would stop. The purpose of insurance is
a safeguard against such misfortunes few, through the help of the fortune many, who
Were
exposed to the same risk, but saved from the misfortune. Thus the essence of
insurance is to share losses and substitute certainty by uncertainty.
The different types of human activities that come under the umbrella of insurance are
as follows.
• House/Office/factory or any moveable - Fire Insurance
Stolen or robbed.
All these are non-life insurance. In conclusion one can safely say that the
purpose of insurance be it life or non-life is to transfer the financial loss to the
insurance company who spreads in over to the policyholders.
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Characteristics of Insurance
It is a contract for compensating losses.
Nature of Insurance
Sharing of Risks
C0-operative Device
Valuation of Risk
Amount of Payment
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I. ON THE BASIS OF NATURE OF BUSINESS
On the basis of nature of business, insurance may be the following types:
1. Life insurance
2. Fire insurance
3. Marine insurance
4. Social insurance,
5. Miscellaneous insurance.
LIFE INSURANCE
payments, agrees to pay to the assured, or to the person for whosen benefit the
policy is taken , the assured sum of money, on the happening of a specified event
insurance, requires that the assured must have at the time of the contract an
insurable interest in his life Upon which the insurance is affected. In a contract of life
insurance, unlike other Insurance, interest has only to be proved at the date of the
contract, and not Necessarily present at the time when the policy falls due.
A person can assure in his own life and every part of it, and can insure for any
husband and vice-versa. However, mere natural love and affection is not sufficient to
assurance on the life of another is so related to that other person as to have a claim
for support. For example, a sister has an insurable interest in the life of a brother
who supports her.
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A person not related to the other can have insurable interest on that other
person. For example creditor has insurable interest in the life of his debtor to the
extent of the debt. A creditor can insure the life of his debtor up to the amount of the
debt, at the time of issue of the policy. An employee has an insurable interest in the
life of the employer arising out of contractual obligation to employ him for a
Stipulated period at fixed salary. Similarly, from an employer to the employee who is
FIRE INSURANCE
consideration (premium) agrees to indemnify the insured for the financial loss which
the latter may suffer due to destruction of or damage to property or goods, caused by
fire, during a specified period. The contract specifies the maximum amount , agreed
to by the parties at the time of the contract, which the insured can claim in case of
loss. This amount is not , however , the measure of the loss. The loss can be
ascertained only after the fire has occurred. The insurer is liable to make good the
actual amount of loss not exceeding the maximum amount fixed under the policy.
insurer because the insured must have insurable interest in the property at the time
of contract as well as at the time of loss. The insurable interest in goods may arise
out on account of
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A person with a limited interest in a property or goods may insure them to
cover not only his own interest but also the interest of others in them.
Under fire insurance, the following persons have insurable interest in the subject
matter:-
Owner
Mortgagee
Pawnee
Pawn broker
Official receiver or assignee in insolvency proceedings
MARINE INSURANCE
A contract of marine insurance is an agreement whereby the insurer
undertakes to indemnity the assured in a manner and to the extent thereby agreed,
against marine Losses incidental to marine adventure perils of the seas, such as fire,
war perils, pirates, rovers, thieves, captures, Jettisons, barratry and any other perils
which are either of the like, kind or may be designed by the policy.
SOCIAL INSURANCE
Social insurance has been developed to provide economic security to weaker
sections of the society who are unable to pay the premium for adequate insurance.
MISCELLANEOUS INSURANCE
The process of fast development in the society gave rise to a number of risks
or hazards. To provide security against such hazards, many other types of insurance
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c. Burglary insurance-(against theft, dacoits etc.)
d. Cattle insurance: : Crop insurance may be purchased by farmers to reduce or
manage various risks associated with growing crops
e. Legality insurance
From business point insurance can be classified into two broad categories:
1. Life insurance; and
2 General Insurance
GENERAL INSURANCE
From risk point of view, insurance can be classified into four categories:
1. Personal insurance
2. Property insurance
3. Liability insurance
4. Fidelity guarantee insurance
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FIDELITY GUARANTEE INSURANCE
Governor R. N. Malhotra was formed to evaluate the Indian insurance industry and
The Malhotra committee was set up with the objective of completing the
The reforms were aimed at “creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the structural
the overall financial system where it was necessary to address the need for the
similar reforms….”
In 1994, the committee submitted the report and some of the key
recommendations
Included:
i) Structure:
Government should take over the holdings of GIC and its subsidiaries so that
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ii) Competition
Private Companies with a minimum paid up capital of Rs. 1bn should be allowed
No company should deal in both Life and General Insurance through a single
entity.
Foreign companies should be allowed to enter the industry with the collaboration
Only one State Level Life Insurance Company should be allowed to operate in
each state
made independent.
iv) Investments
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)
v) Customer Service
insurance industry.
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The committee emphasized that in order to improve the customer services and
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.
minimum capital requirement of Rs. 100 crores. The committee felt the need to
body.
Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory
body in April 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies. The other decisions taken
particular the life insurance companies were the launch of the IRDA’s online service
for issue and renewal of licenses to agents. The approval of institutions for imparting
training to agents has also ensured that the insurance companies would have a
trained workforce of insurance agents in place to sell their products, which are
statutory body the IRDA has put in a framework of globally compatible regulations. In
the private sector 12 life Insurance and 6 general insurance companies have been
registered.
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Restructuring of GIC
The GIC was converted into a national re-insurer and its four subsidiaries
passed a bill de-linking the four subsidiaries from GIC in July, 2002. These are
National insurance co.ltd the oriental insurance co.ltd The new India assurance co
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LIST OF LIFE INSURANCE COMPANIES:
3. Bajaj Allianz Life Insurance 15. Kotak Mahindra Old Mutual Life
12. ICICI Prudential Life Insurance 23. Star Union Dai-Ichi Life Insurance
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List of standalone health insurance companies:
What is Healthcare
You have heard of the saying “Health is Wealth”. The word ‘Health’ was
derived from the word ‘hoelth’, which means ‘soundness of the body’.
Over a period of time, modern medicine has evolved into a complex science
and the goal of modern medicine is no longer mere treatment of sickness but
Definition
World Health Organization (WHO): Health is a state of complete physical,
mental and social wellbeing and not merely the absence of disease.
Determinants of health
It is generally believed that the following factors determine the health of any
individual:
a) Lifestyle factors
Lifestyle factors are those which are mostly in the control of the individual concerned
e.g. exercising and eating within limits, avoiding worry and the like leading to good
health; and bad lifestyles and habits such as smoking, drug abuse, unprotected sex
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b) Environmental factors
Safe drinking water, sanitation and nutrition are crucial to health, lack of which
leads to serious health issues as seen all over the world, especially in developing
c) Genetic factors
genetic factors result in differing health trends amongst the population spread across
the globe based on race, geographical location and even communities. It is quite
obvious that a country’s social and economic progress depends on the health of its
people. A healthy population not only provides productive workforce for economic
activity but also frees precious resources which is all the more crucial for a
developing country like India. At an individual level, ill health can cause loss of
livelihood, inability to perform daily essential activities and push people to poverty
Thus ‘spend’ on healthcare usually forms a significant part of every country’s GDP
The Indian health system has had and continues to face many problems and
challenges. These, in turn, affect the nature and extent of the healthcare system and
the requirement at the individual level and healthcare organization at the structural
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Demographic or Population related trends
India is second largest populated country in the world.
The level of poverty has also had its effect on the people’s ability to pay for medical
care.
Social trends
Increase in urbanization or people moving from rural to urban areas has posed
challenges in providing healthcare. Health issues in rural areas also remain, mainly
The move to a more sedentary lifestyle with reduced need to exercise oneself has
led to newer types of diseases like diabetes and high blood pressure.
Life expectancy
Life expectancy refers to the expected number of years that a child born today will
survive. Life expectancy has increased from 30 years at the time of independence to
over 60 years today but does not address the issues related to quality of that longer
lifespan.
State Insurance Scheme, introduced vide the ESI Act, 1948, shortly after the
country’s independence in 1947. This scheme was introduced for blue-collar workers
employed in the formal private sector and provides comprehensive health services
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All workers earning wages up to Rs. 15,000 are covered under the
contributory scheme wherein employee and employer contribute 1.75% and 4.75%
expenses.
Maternity benefit
Disability benefit
survivorship and
The ESIS was soon followed by the Central Government Health Scheme (CGHS),
which was introduced in 1954 for the central government employees including
pensioners and their family members working in civilian jobs. It aims to provide
Comprehensive medical care to employees and their families and is partly funded by
In 2010, CGHS had a membership base of over 800,000 families representing over 3
million beneficiaries.
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c) Commercial health insurance
loss making for the insurers, in the beginning, it was largely available for corporate
In 1986, the first standardized health insurance product for individuals and
their families was launched in the Indian market by all the four nationalized non-life
insurance companies Today, more than 300 health insurance products are available
providing the health care facilities called providers, others the insurance services and
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SWOT ANALYSIS
[1] STRENGTHS: 1.
Earlier entry:
2. Business Growth:
WEAKNESS: 1. Low
investment-
Its capital investment capital base of Rs.733 crores.Which is low?
2. Lack of awareness:
There is a lack of awareness about health insurance among people
.3. Increasing competition:
There is rising competition in health insurance market from other co. such as
Hdfchealth, maxbupa etc.
[3] OPPORTUNITIES:
India’s improving economic fundamentals will support faster growth in per capita
income in the coming years, which will translate into stronger demand for insurance
products.
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HEALTH INSURANCE PLAN
Features:
2. Expenses incurred towards cost of Health Check up after 3 years worth Rs-5,000/-
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Senior Citizens Red Carpet Health Insurance Policy:
Parents have spent their life trying to make our life secure. It’s time you do the
same for them in their old age. Senior Citizen Red Carpet Policy will help parents live
Features:
For Senior citizens aged between 60 to 75 years.
No pre-insurance medical test required. Covers pre-existing diseases from
the second year onwards
Medical Consultations as an Out Patient in a Network Hospital Higher Sum
Insured coverage upto Rs.10Lakhs
Guaranteed lifetime renewals
Co-Payment:
50% of each and every claim relating to pre-existing diseases and 30% of each and
every claim for all other claims
Pre-Existing Diseases/Illness:
Covered after 12 months of continuous coverage
Tax Benefits:
Amount paid by any mode other than by cash for this insurance is eligible for relief
under Section 80D of the Income Tax Act.
FreeLook Period:
A free look period of 15 days from the date of receipt of the policy is available for
reviewing the policy terms and conditions.
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STAR HEALTH TRAVEL INSURANCE
across borders and seas with the risks associated with travelling. Insurance
companies provide travelers with travel insurance that protect them from
Star Health Insurance recognizes the fact that their customers are looking for
different requirements .They offer different plans, each specially to suit these
requirements.
compensation for accidental injuries etc. will be covered with this policy
Eligibility:
This policy can be purchased for anyone above the age of 6 months. Only
Indian citizens can get this cover.
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Benefits:
make use of this policy. General cover also includes possibilities like hijack distress,
It even covers third party bodily injury and property loss. Monetary loss
face such as medical emergencies, bereavement, litigation related risks and others.
Star Student Travel Protect Insurance Policy offers coverage for all these and much
more.
Benefits:
Reimbursed for tickets to fly home in the event of an emergency As
academic tuition fee in case of sponsor’s death is offered with this student travel
insurance scheme.
The costs related to legal claims including that for bail bond (for false arrest or
If the insured has caused bodily injury to third party or damage to third party
property, the costs will be covered.
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3. Star Corporate Travel Protect Insurance Policy:
Travelling across the globe for business is the norm now days, and there are
many risks associated with it. Everything from delayed baggage, accidental injuries,
Available for a sum insured limit of USD 1,00,000, USD 2,50,000 and USD
5,00,000, this corporate insurance plan is available for travel to countries across the
Eligibility:
An insured person, his/her spouse and up to two dependent children below
Hijack distress
Flight delay
paid for the amount you lost due to cancellation of your trip because of death
of a family member.
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Star Health Travel Insurance Claim Process:
call the toll-free number to contact Star Health Insurance claims assistance
You will be asked to fill out a claims form and send it either by fax or mail,
Must keep the following ready before making a claim: copy of passport with
complaint
Once the surveyor has assessed your case and documents, your claim will be
processed.
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STAR HEALTH ACCIDENTAL CARE INSURANCE
Features:
weeks).
Benefits:
I. Additional free benefits
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ADDITIONAL FREE BENEFITS:
Travel Expenses for One Relative (Applicable for Death claims only): 1% of
Total Sum Insured upto Rs.50,000/- subject to actual for the transport expenses
importing medicines.
The above mentioned amounts are payable in addition to the sum insured.
ELIGIBILITY
Any person between 18 and 70 years of age at the time of entry can
under family
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OBJECTIVE OF THE STUDY
sector?
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RESEARCH OF METHODOLOGY
procedures used for generating, collecting and evaluating data. Methods are ways of
RESEARCH DEFINITION:
It consists of three steps: Pose a question, collect data to answer the question, and
RESEARCH DESIGN:
The type of research chosen for the study is descriptive research. In descriptive
research various parameters will be chosen and analyzing the variations between
these parameters. This was done with an objective to find out the motivation level of
the employees.
DATA SOURCES:
The data collected for the study is mainly through the distribution of questionnaire; to
be precise the data collected for study was both primary and secondary sources.
PRIMARY DATA:
Primary data is the information collected for the first time; there are several methods
SECONDARY DATA:
Secondary data needed for conducting research work were collected from company
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RESEARCH INSTRUMENT:
In this study the primary data was collected by survey technique. In this we
QUESTIONNAIRE:
aspect, regarding which the researcher collects the data. Because of their flexibility
the questionnaire method is by far the most common instrument to collect primary
Questionnaire
SAMPLING PLAN
Sampling design is to clearly define set of objective, technically called the universe to
SAMPLING DESIGN
This refers to the number of items to be selected from the universe to constitute a
sample.
UNIT/SIZE
METHOD
Random Sampling
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SCOPE FOR FUTURE WORK
The study is conducted on the employees in “IN STAR HEALTH & ALLIED
INSURANCE, JABALPUR”.
programmes.
programmes.
As the respondents were busy with their work, it was difficult for the
The data depends totally on the respondent's view, which may be biased.
The findings of the study cannot be applied to all other fields since it lacks
external validity.
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DATA ANALYSIS AND FINDINGS
Survey has been done to know the Awareness, Preference and consumption pattern
SAMPLE SIZE-100
having Insurance Policy 32% Respondents don‘t have any kind of Insurance Policy.
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Q.2 Are you aware about Health Insurance?
(a)Yes (b) No
Analysis:-
The condition of health insurance in India is not up to mark. Most of the respondent
does not use health insurance to finance their medical expenditure. These people
pay for their medical expenditure from their pocket. As a result, many of these
uninsured individuals either end up with poor quality healthcare or have to bear
financial hardships. The awareness about Health insurance is very low due to many
reasons.
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Q.3 If yes, do you know benefits of health insurance?
Analysis:-
Because of lack of product benefit customer are not ready to purchase that product.
Lack of product awareness among distributors ,if they are not in position to introduce
the product to customer it will not be in a position to understand the importance and
uses of health insurance. it is rightly said that awareness develop brand equity , due
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Q.4 Do you have any Health Insurance Policy?
Analysis:-
54% Respondents having Health Insurance policy. 46% Respondents don‘t have
Health Insurance policy. Because lack of awareness about Health Insurance and
Insurance.
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Q.5 If yes, which companies plan do you avail?
(c ) Star Allied
(e)Others
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Analysis:-
India‗s largest Pvt. Sectors Bank, which is also in Health insurance, ―ICICI
Lombard‖ is one of the best health insurance company and ―Star Allied
customers .Although the premium amount is high but customers still opt this
companies Insurance product. It has created as his own brand image. only
Bajaj Allianz the most target audience are middleclass and lower middle class
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Q.6 How did you get this health Policy?
Analysis
The Analysis shows that 57% respondents purchased own Health Insurance .Single
premium provide lots of extra lifetime facility, as compare to family floater plan
customer will get maximum sum assured. very few companies are provide health
insurance for their employee and in case of family floater company charge more
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QUESTIONNAIRE
Name of Respondent : -
Date: -
Gender
Qualification
(a) Below 10,000 (b) 10,001-20,000 (c) 20,001-30,000 (d) above 30,000
Occupation
(a)Yes (b) No
(a) Yes ( b ) No
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(a) ICICI Lombard
(c ) Star Allied
(e) Others
(a) 1000- 5000 (b) 5001- 10000 (c) 10001 – 15000 (e) Above 15000
Q.9 Kindly Rate The Following Factors Important To You In Opting Health
Insurance (More than one)
(a) Service of Insurer ( ) ( ) ( ) ( ) ( )
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Q.10 How Well Do You Think, You Are Covered By Your Current Health Insurance
Policy?
(a) Definitely well-covered
Q 11. Which according to you is the most important aspect that every health
insurance plan should cover Hospital care?
(a) Preventive care
(b) Maternity
(Excellent………Good………Bad………..Poor……..)
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Q 13. What Are The Reasons, You Do Not Have Any Health Insurance
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CONCLUSION
There are 5health insurance companies in India and the market share
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BIBLIOGRAPHY
WEBSITES:
www.google.com
www.starhealth.in
www.wikipedia.org
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