A

PROJECT REPORT
ON
“A STUDY OF MEDI-CLAIM AND HEALTH INSURANCE WITH
REFERANCE TO COMPARISON OF STAR HEALTH AND MAGMA
HDI GENERAL INSURANCE COMPANY.”

SUBMITTED TO

RASHTRASANT TUKADOJI MAHARAJ NAGPUR

UNIVERSITY, NAGPUR

IN PRATIAL FULFILLMENT OF THE REQUIREMENTS OF

BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED BY

SHWETA BHURSE

UNDER THE GUIDENCE OF

DR. SANJAY CHOURE

(SESSION – 2022-2023)

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 CERTIFICATE

DEPARTMENT OF BUSINESS MANAGEMENT REVNATH CHOURE COLLEGE, NAGPUR

This is to certify that it is a bonafide record of project work entitled

“A
STUDY OF MEDI-CLAIM AND HEALTH INSURANCE WITH
REFERANCE TO COMPARISON OF STAR HEALTH AND MAGMA
HDI GENERAL INSURANCE COMPANY”

Carried out by Shweta Bhurse of BBA final year. Finance specialization, during
academic year 2022-2023, in partial fulfillment of the requirement for the award of the
degree of Bachelor of Business (Finance specialization) offered by Rashtrasant Tukdoji
Maharaj Nagpur University, Nagpur.

Date:- Dr. Sanjay Choure

Place :- (Head of Department)

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 DECLARATION

I hereby declare that the dissertation entitled “A STUDY OF MEDI-CLAIM AND HEALTH
INSURANCE WITH REFERANCE TO COMPARISON OF STAR HEALTH AND MAGMA HDI
GENERAL INSURANCE COMPANY” has been completed by me in partial fulfillment of BBA Part
III degree examination as prescribed by Rashtrasant Tukdoji Maharaj Nagpur University and had not
been submitted for any other examination and does not form the part of any other course undergone by
me.

The source of material, data used in this study have been Fully acknowledged.

Date: - Researcher
Place: - Saoner SHWETA BHURSE

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 ACKNOWLEDGMENT

My foremost thanks to MR. SANJAY CHOURE (DIRECTOR) Revnath Choure College, Saoner for
motivating me in my project work. My outmost thanks to all the staff members for their valuable support,
guidance and suggestions during my project work. I also thankful to DR. SMITA CHOURE (HOD) for their
valuable guidance during the project.

Date: - Researcher

Place: -Saoner Shweta Bhurse

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 TABLE OF CONTENTS

Sr. Contents Page no.

no.
1. Executive summary 6-7

2. Introduction 8-22

3. Company 23-36
profile
4. Review & Literature 37-40

5. Objective 41-42

6. Scope 43-44

7. Limitation 45-46
8. Research 47-50
Methodology
& Data
Collection
9. Data Analysis 51-58
&
Interpretation
10. Finding 59-60
11. Conclusion 61-62
12. Bibliography 63-64

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Executive Summary

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Executive Summary
Nearly three decades have passed since the first ever structured standalone health insurance
product was introduced in the Indian market. Since then, health insurance business has come a
long way to become one of the fastest growing segments of the Indian insurance sector. Today,
the market is replete with not only numerous health insurance products covering hospitalization
risk in the conventional indemnity based 'mediclaim' mould but also benefit oriented covers like
critical illness and hospital cash. One of the main drivers for this increase in choice for the
consumers has been the opening up of the insurance industry to private sector competition as a
part of the reforms initiated by the Government.

Since then, a large number of private sector insurance companies, mostly joint ventures
between Indian companies and reputed global insurance majors having minority stake, have
entered the insurance market in India. As of date, a total of 4 standalone health insurers and 21
general insurers are licensed to operate in India. Almost all the general insurance companies
also offer health related insurance policies. Specialist insurers like the Export Credit Guarantee
Corporation (ECGC) and Agriculture Insurance Company of India (AIC) do not underwrite any
health policies.

A typical health insurance policy will have multiple stakeholders including:

 The Insurance Company

 The Insured (Individual or Group)
 Third Party Administrators (TPA’s) The Medical Establishments
 The Insurance Intermediaries (distribution channels)
 The Regulator

Due to simultaneous interactions between so many independent entities, the health insurance
segment becomes unique in as much as tremendous amounts of data is generated during each
interaction. The existence of such vast amounts of data facilitates innovations of new products;
it also enables collaboration between insurance companies for learning new aspects of the health
insurance business by sharing of experience and carrying out of data analytics.

Typical customer segments for Health Insurance in India include:

 Individuals / groups with retail mediclaim insurance

 Individuals / groups with mediclaim insurance purchased by their affinity groups
 Individuals / groups from the underprivileged sections of the society covered by state
funded medical schemes

It is obviously critical for the insurance industry to understand these broadly defined customer
segments as each of them will exhibit unique traits and impact the bottom line profits of the
companies differently. Much can be written about the ever increasing cost of medical expenses
and hospitalization charges in present day India. With such skyrocketing medical costs, it is
common wisdom that more people will look towards a health insurance product to secure
themselves. However, various incontrovertible data points on the severity of adverse financial
impact of ill health for the economically weaker sections of the society clearly suggests that it
is imperative for health insurance to innovate by focusing on new techniques around data
analytics like predictive modelling etc. to improve the products on offer thereby increasing the
market penetration and product affordability for the customer

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INTRODUCTION

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 Mediclaim & Health Insurance
Health insurance or medical insurance is a type of insurance that covers the whole or a part of
the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among
many individuals. By estimating the overall risk of health risk and health system expenses over the risk
pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to
provide the money to pay for the health care benefits specified in the insurance agreement. The benefit
is administered by a central organization, such as a government agency, private business, or not-for-
profit entity.

According to the Health Insurance Association of America, health insurance is defined as "coverage that
provides for the payments of benefits as a result of sickness or injury. It includes insurance for losses
from accident, medical expense, disability, or accidental death and dismemberment".

What is Medi-claim
A common area of confusion for most people is the difference between health insurance and Medi-claim,
often mistaking one for the other. Even though both offer financial protection during emergencies, Medi-
claim is not just another word for health insurance.

A Medi-claim policy is a sort of health insurance policy in which the insurer reimburses the policyholder
for medical expenses incurred in treating their medical condition. If you have a medical insurance policy,
you can submit your bills to the insurance company for payment. Alternatively, you can opt for the
cashless treatment option which makes the insurance company and hospital administrator responsible to
settle the medical bills.

How Does Medi-claim Insurance Work

Medi-claim insurance is designed to provide policyholders with financial backup during medical
emergencies. To understand what is medicalim policy and how it works, you need to know the following
things about it:

 Provides Coverage - It covers the cost of hospitalization due to accident, surgery, or critical
illness throughout the policy period.
 Premium Payments - Like all other forms of health insurance, you must routinely pay a
premium amount to avail the benefits of Medi-claim.
 Renewal Terms - However, Medi-claim comes with a pre-specified insurance cover, and you
need to renew the policy at the end of every term to keep enjoying the perks.
 Settlement Options - As per your preference, you can either opt for Medi-claim offering
cashless hospitalization or reimbursement settlement. Cashless hospitalization Medi-claim is
much more convenient as the bills are settled by the insurance provider directly with the hospital.
Whereas the reimbursement method requires you to settle the expenses from your own pocket,
and the total amount is then reimbursed by the insurer.

Medi-claim Insurance Vs Health Insurance

After addressing some basic questions like what is Medi-claim? And how does Medi-claim work? It is
now time to understand the distinction between health insurance and Medi-claim insurance. Even though
Medi-claim sounds a lot like health insurance, there are some major differences between the two. Here

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 are some key pointers that will help you understand the dissimilarities between Medi-claim and health
insurance:

Criterion Health Insurance Medi-claim

Health insurance is comprehensive and
Coverage Medi-claim typically only covers
coversseveral medical expenses,including
Level hospitalization-related costs.
hospitalization.
The coverage offered under health insurance In contrast, Medi-claim insurance
extends to pre & post-hospitalization costs, pays/reimburses bills incurred during
Inclusions
daycare treatments, ambulance charges, hospitalization, be it due to an
domiciliary care, AYUSH treatments, and accident, chronic illness, or surgery
more.
Cover Health insurance cover can go up to crores In Medi-claim, the coverage amount
Amount ofrupees if required islimited based on the plan you opt
for.
Numerous add-ons can be included with
Medi-claim, generally does nothave
Add-ons health insurance such as critical illness cover,
add-ons.
disabilitycover, maternity cover etc.

 Health insurance comes with a plethora of add-on covers such as maternity benefits, critical
illness cover, and COVID care. However, Medi-claim may not offer the same. Instead, there are
certain benefits like room rent modification and reduction in waiting period that you can avail.
 A health insurance plan can be customized or personalized as per the policyholder’s medical
requirements, making them quite flexible. On the other hand, Medi-claim has no flexibility but
can still be beneficial.

Now that we have the question ‘What is Medi-claim policy?’ out of the way let’s shift the focus to the
specifics of Medi-claim, starting with its types.

The Types of Medi-claim Policies

Many people are often under the impression that there is only one type of Medi-claim policy, but it has
several variations. Keep on reading to know more about the most popular Medi-claim policies available
to policy buyers.

1. Individual Medi-claim
An individual Medi-claim plan covers expenses borne by the policyholder during hospitalization. As the
name suggests, it only provides coverage to the insured. Individual Medi-claim is best suited for those
living alone or without any dependents.

2. Family Floater Medi-claim

Family floater Medi-claim is basically the same as an individual policy. However, besides the
policyholder, family plans also offer coverage to the policyholder’s spouse, children, and parents. It is
an excellent option for anyone wanting to secure their immediate family under one premium.

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3. Senior Citizen Plans
A senior citizen Medi-claim plan is designed to cater to the medical needs of people above the age of 60
years. It specifically covers expenses for age-related diseases and illnesses, which are not included in
basic Medi-claim policies. You can get a senior citizen plan for your parents, in-laws, or anyone who
has crossed the age of 60 in your family.

4. Critical Illness Medi-claim

It is not news that treatments for chronic ailments like cancer, cardiovascular diseases, and kidney failure
can take a financial toll on you, which is why investing in critical illness Medi-claim is a smart choice.
These policies offer cover for medical expenses, including hospitalization and treatments for serious
conditions.

5. Personal Accident Policy

Personal accident Medi-claim policies provide medical cover against partial disability, total disability,
and accidental death. Although it is not a must-have plan, personal accident Medi-claim further secures
you and your loved ones’ future.

Features of Medi-claim Policies

If you are new to the concept of Medi-claim, the first few things that must have popped in your head
would have been: What is Medi-claim policy? How is it different from health insurance? And what are
its types? Although we have answered all these questions, we haven’t yet covered the features of Medi-
claim.

While the features of each Medi-claim policy vary based on the insurance provider, here are some
common ones that can be found in most plans:

Cashless Settlement
If you have ever wondered ‘what is cashless Medi-claim’, you are about to find out. By investing in
Medi-claim, you can reap the benefits of cashless settlements. Under cashless Medi-claim, the bills and
included medical expenses are paid directly to the hospital by the insurance provider. This way, you
don’t have to pay anything out of your pocket.

Tax Returns
Whether you buy health insurance or Medi-claim insurance, you are eligible to enjoy certain tax benefits
with Medi-claim 80D section of the Income Tax Act, you can claim deductions up to rupees 25,000 on
your income tax amount for premiums paid towards insurance plans. Moreover, seniors citizens can avail
up to rupees 50,000 for the same.

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Abundant Policy Choices
When it comes to the number of policy choices, Medi-claim falls in line with health insurance plans.
You can buy plans for yourself, your spouse, children, or your parents at pocket-friendly premiums.
Furthermore, with Medi-claim, you get access to specific policies like those catering to people suffering
from critical illnesses and even senior citizens.

Financial Protection

We all know that life is uncertain, but there is no way we can escape what it throws our way. But the
least we can do is safeguard our future, especially against medical emergencies, and there is no better
way to do so than by purchasing Medi-claim. If nothing more, it can protect you from financial losses
and debt.

Inclusions In Medi-claim
The inclusions can slightly differ depending on the type of Medi-claim and the insurance provider.
However, here are the general inclusions of a Medi-claim policy:

 In-Patient Hospitalization – It covers the expenses incurred in case the insured person is
hospitalized for 24 hours or more.
 Day Care Treatment – Treatments that do not require hospitalization will also be covered under
the Medi-claim policy.
 Pre-And Post-Hospitalization Cover - Medical expenses incurred prior to being admitted to
the hospital and after being released from the hospital are covered.
 Domiciliary Hospitalization - Domiciliary treatment is treatment provided at home due to a
lack of hospital beds or when the insured is unable to be transferred to a hospital.
 Annual Health Check-Ups - Almost all health insurance policies cover free preventative health
screenings once every one to four claim-free policy years.
 No Claim Bonus – For every year that goes by without the policy being claimed, the insured
person is given a bonus in the following policy year.

Who Should Buy

Anyone who wishes to secure the future for themselves and their family members against health
problems should consider buying a Medi-claim policy. Regardless of your marital status or life stage, it
is crucial to protect yourself against the rising costs of healthcare. Hence, having a sound financial
support system for such expenses can prove immensely helpful.

Why Medi-claim?
It is not news to anyone that we are surrounded by an increasing number of lifestyle diseases. Moreover,
considering the hospitalisation costs and general inflation, it is in your best interest to understand what
is Medi-claim an how it can help you

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Here are some reasons you should consider it:

 It provides a financial safety net in the event of a medical emergency.

 A cashless hospitalisation facility is available which makes it more convenient for you to get
healthcare during a medical emergency. Hospitalization costs are managed by the insurance
company.
 It is an affordable method of receiving healthcare services and reduces the budgetary burden
 Most importantly, it gives you peace of mind that you will be able to meet the costs and receive
quality healthcare
 Individual and family floater Medi-claim insurance are available so you can choose whichever
fits your financial and health needs.
 Premiums paid for a medical insurance coverage are eligible for tax benefits.

How to Choose the Right Medi-claim Policy

Now that you know what Medi-claim policy is, let’s talk about how you can find the right policy.
Although there is no formula to finding the best Medi-claim policy, the first step should be to assess your
needs. Or if you are buying Medi-claim for family, evaluate their medical requirements, post which you
can consider the following factors to make an informed decision:

 Adequate Cover - Choose an adequate sum insured/coverage amount when you are buying
Medi-claim for family. This is crucial because you do not want to end up with insufficient cover
in the face of a medical emergency.
 Co-Payment Clause - Check the co-payment clause, as you might be required to pay a share of
the amount while claiming the Medi-claim policy. Sometimes, policyholders are caught by
surprise by this clause which can result in disappointment. Be sure to read the policy document
carefully to avoid such a circumstance.
 Compare Plans – Like any policybuyer, you would want to select plans offering maximum
benefits at affordable rates· Comparing different Medi-claim policies will give you in-depth
information about the benefits and a clearer idea of your requirements as well. Go for policies
with no waiting period, especially if buying Medi-claim to treat a critical illness.
 Check Network Hospitals - It is best to invest in Medi-claim with a wide hospital network and
the option of cashless payment.This will help you get the necessary healthcare in any part of the
country without worrying about the cost.
 Even though Medi-claim policies typically do not come with add-on covers, if you can find a
plan that does, purchase it.
 If possible, buy Medi-claim offering long-term or lifetime renewability, as renewing the policy
every year can get hectic.
 Lastly, always check the exclusions, limits, and sub-limits.

Once you have understand what is Medi-claim insurance and its importance, buying Medi-claim can be
the best decision that you make for yourself or your family.But it is important to keep everything we’ve
discussed above in mind. Also, it is crucial to carefully read the terms & conditions along with the policy
wordings before investing.

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Health insurance acts as a financial shield and covers your medical expenditure in case you fall ill. Pay
your premiums on time and the policy gives coverage to the policyholder subject to fulfillment of other
terms and conditions. Fixed benefit health insurance policies pay a fixed amount of money following a
claim and without any submission of bills from the policyholder, while traditional policies provide
reimbursement for the money spent on actual medical treatment. Health insurance in India is offered by
general insurance companies and life insurance companies.

Difference between Medi-claim Insurance and Fixed benefit

health insurance plans
Medi-claim Insurance policies are indemnity-oriented plans. They reimburse the policyholder the cost
of medical expenses up to the sum assured. The policyholder is required to submit hospital bills detailing
the actual expenses incurred, and a successful claim can be either cashless i.e. directly to the healthcare
provider, or to the policyholder as a repayment. These policies may have some limitations while
providing cover for critical illnesses, heart and cancer disease which may require special health insurance
cover or fixed benefit cover plan.
In comparison, fixed benefit health insurance plans give you cover against specific diseases or conditions
including heart ailments and cancer. These new-age policies give you the claim amount on first diagnosis
irrespective of the actual medical costs. You don’t need to find a network hospital or file for
reimbursement claims. This is because fixed benefit health insurance plans send you the cover amount
as soon as a diagnosis is made. So, you can get treated at a hospital of your choice.

Why do you need a health insurance plan?

 Medical emergencies - They can cause huge financial burden to people if they do not have health
insurance. The cost of medical treatment rises each year and there are several disease which need
extremely expensive treatment. Health insurance can cover your treatment expenses in such
cases.
 Increase in medical costs - Healthcare treatment costs are rising. Total cost of cancer treatment
can be `23 lakh* if you include chemotherapy, targeted therapy and PET scans. Heart ailments
can cost `20 lakh including surgeries and post hospitalization follow-up. You need an alternative
way to get treated. This is where regular health insurance helps.
 A necessity - In today’s economy, one cannot rely solely on traditional avenues like family
support and emergency savings. The high cost of medical treatment has made health insurance a
necessity for your health and financial security.

Why do you need a fixed benefit health insurance plan?

 Extra protection - Regular health insurance policies can provide you with financial relief when
you have incurred treatment charges. Fixed benefit health plan works as a filler to pay for any
possible expense that is not covered by the regular health insurance plan.
 Timely treatment - Early intervention is more likely when you have fixed benefit health
insurance. With a regular insurance plan, a high medical expenditure most often prompts people
to delay their treatment. This wait can lead to the condition becoming more serious, and even
life-threatening.

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  Complete freedom - Since the payment is based on diagnostic report, you are 100% free to choose
the place, time and medium of treatment.

When should you buy health insurance?

 Start early: The earlier you buy health insurance, the lower your premium will be. Starting early
will also end the exclusion periods for pre-existing conditions early. These periods commence
from the time you have bought the insurance policy and hence the earlier you buy one, the better.
 Don’t rely on your employer: Many people skip buying health insurance because they are covered
by a company policy. However they fail to note that the coverage will be withdrawn when they
move to a different organisation or into self-employment. Buying a health insurance at this stage
is a lot more expensive because you are likely to be older at the point of moving to your second
job/new venture. Health insurance premiums shoot up with age.
 To save tax^: Health insurance premiums are eligible for deductions from taxable income up to
`25,000 per annum under Section 80D of the Income Tax Act, 1961. In case of parents additional
deduction upto `25,000 is available (if age of insured is 60 years or above deduction allowed is
`50,000). These limits include deduction of `5,000 for preventive health check-up. If you are
paying premiums for yourself and parents who are senior citizens, you can avail of the combined
deduction up to `25,000 + `50,000 = `75,000 per annum. If both you and parents are senior
citizens, you can avail of the combined deduction up to `50,000 + `50,000 = `100,000 per annum.
These deductions are available each year and cannot be carried forward. Hence, starting early
will help you maximise the benefits of these deductions.

How to choose the best health insurance plan?

In order to determine this, you need to look at a range of factors:

 Premium Charged: Price is an important component of your selection process, but not the only
one. Certain policies may have higher premiums but may offer additional benefits. Also, fixed
benefit health insurance plans come with a range of discounts that lower premium. For instance,
you can get up to 9% disciount while buying ICICI Pru Heart/Cancer Protect. Covering your
spouse with an independent cover gets 5% off*** on the combined premium, additional 2%
discount if you buy the policy online. and there is 2% more discount on the combined premium
(For Heart and Cancer) if you take both Heart and Cancer cover.
 Expenses Covered: When buying a regular health insurance plan, check whether your policy is
covering pre and post hospitalisation expenses. Also, check if there are room rent caps. A room
rent cap is a ceiling on the amount your policy will pay you for room rent charges when you are
in a hospital. For fixed benefit health insurance, do check the amount paid in case of minor
conditions/illnesses. Also, look at whether policy offers add-on covers like hospital cash benefit,
increasing cover benefit, and income benefit.
 Claim Settlement Ratio: This figure tell you what proportion of insurance claims are paid out by
the company. Other things being equal, a higher claims settlement ratio is better than a lower one.
For instance, ICICI Prudential Life Insurance’s Claims Settlement Ratio^^ for FY2021-22 is
97.8%.
 Claim processing time: Health insurance claims are the reason why you are buying a policy. The
best policy should have quick and transparent claims experience. During FY2017-18, ICICI
Prudential Life Insurance’s average turnaround time for settling a claim is 2.99** days. As much
as 67% of claims were settled within 3 days. Also, we have settled 96.43%~ of claims received
within 30 days of intimation.

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  Exclusions: Health insurance policies exclude certain diseases and ailments. It may also have
certain waiting periods - only claims made after the waiting period are paid out. Check if these
conditions and exclusions apply to your policy and to what extent.

In India, provision of health care services varies state-wise. Public health services are prominent in most
of the states, but due to inadequate resources and management, major population opts for private health
services.

To improve the awareness and better health care facilities, Insurance Regulatory and Development
Authority of India and The General Corporation of India runs health care campaigns for the whole
population. IN 2018, for under privileged citizens, Prime Minister Narendra Modi announced the launch
of a new public health insurance fund called Ayushman Bharat Yojana and the government claims that
the new system will try to reach more than 500 million people.

In India, Health insurance is offered mainly in two Types:

 Indemnity Plan basically covers the hospitalisation expenses and has subtypes like Individual
Insurance, Family Floater Insurance, Senior Citizen Insurance, Maternity Insurance, Group
Medical Insurance.
 Fixed Benefit Plan pays a fixed amount for pre-decided diseases like critical illness, cancer,
heart disease, etc. It has also its sub types like Preventive Insurance, Critical illness and Personal
Accident.

Depending on the type of insurance and the company providing health insurance, coverage includes pre-
and post-hospitalisation charges, ambulance charges, day care charges, Health Checkups, etc.

It is pivotal to know about the exclusions which are not covered under insurance schemes:

 Treatment related to dental disease or surgeries

 Non-Allopathic Treatment

Few of the companies do provide insurance against such diseases or conditions, but that depends on the
type and the insured amount.

Some important aspects to be considered before choosing the health insurance in India are Claim
Settlement ratio, Insurance limits and Caps, Coverage and network hospitals.

Health insurance in India is a growing segment of India's economy. The Indian healthcare system is one
of the largest in the world, with the number of people it concerns: nearly 1.3 billion potential
beneficiaries. The healthcare industry in India has rapidly become one of the most important sectors in
the country in terms of income and job creation. In 2018, one hundred million Indian households (500
million people) do not benefit from health coverage. In 2011, 3.9% of India's gross domestic product
was spent in the health sector.

Policies are available that offer both individual and family cover. Out of this 3.9%, health insurance
accounts for 5-10% of expenditure, employers account for around 9% while personal expenditure
amounts to an astounding 82%. In the year 2016, the NSSO released the report “Key Indicators of Social
Consumption in India: Health” based on its 71st round of surveys. The survey carried out in the year
2014 found out that, more than 80% of Indians are not covered under any health insurance plan, and only
18% (government funded 12%) of the urban population and 14% (government funded 13%) of the rural
population was covered under any form of health insurance.

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Health Insurance Coverage in India:Stats from NSSO survey

Presentation
India's public health expenditures are lower than those of other middle-income countries. In 2012, they
accounted for 4% of GDP, which is half as much as in China with 5.1%. In terms of public health
spending per capita, India ranks 184th out of 191 countries in 2012. Patients' remaining costs represent
about 58% of the total. The remaining costs borne by the patient represent an increasing share of the
household budget, from 5% of this budget in 2000 to over 11% in 2004-2005. On average, the remaining
costs of poor households as a result of hospitalization accounted for 140% of their annual income in rural
areas and 90% in urban areas.

History
Launched in 1986, the health insurance industry has grown significantly mainly due to liberalization of
economy and general awareness. According to the World Bank, by 2010, more than 25% of India's
population had access to some form of health insurance. There are standalone health insurers along with
government sponsored health insurance providers. Until recently, to improve the awareness and reduce
the procrastination for buying health insurance, the General Insurance Corporation of India and the
Insurance Regulatory and Development Authority (IRDAI) had launched an awareness campaign for all
segments of the population.

Types of policies
The health insurance sector hovers around 10% in density calculations. India is a country with one of the
lowest health insurance penetration, with only 18% of people in urban areas and 14% in rural areas
covered under any kind of health insurance scheme. One of the main reasons for the low penetration and
coverage of health insurance is the lack of competition in the sector. IRDAI which is responsible for
insurance policies in India can create health circles, similar to telecom circles to promote competition.

Cost and duration

 Policy price range: Insurance companies offer health insurance from a sum insured of ₹5,000 for micro-
insurance policies to a higher sum insured of ₹5 million (US$63,000) and above. The common insurance
policies for health insurance are usually available from ₹100,000 (US$1,300) to ₹500,000 (US$6,300).

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Tax benefits
Under Section 80D of the Income-tax Act the insured person who takes out the policy can claim for tax deductions.

Types of Health Insurance

Every individual is different and has a unique set of needs. A single health insurance product is not
enough to cover every person's individual requirements. This is precisely where there are a number of
different types of health insurance plans available. Let's take a look at what they are:

1. Individual Health Insurance

You can purchase an individual health insurance policy to provide cover for yourself, your
spouse, your children and your parents. These policies typically cover all kinds of medical
expenses, including hospitalization, daycare procedures, hospital room rent and more. Under an
individual health insurance plan, each member has their own sum insured amount. So, let's say
you've taken an individual plan for yourself, your spouse and both your parents with a sum
insured of INR 8 lakhs. Each of you will be able to claim a maximum amount of 8 lakhs per
policy year against your health insurance.

2. Family Floater Health Insurance

A family floater plan allows you to cover your family members under a single policy and
everybody shares the sum insured amount. These plans are typically more affordable than
individual plans since the sum insured is shared. Let's say you purchase a family floater plan for
you and your spouse with a sum insured of INR 8 lakhs. In a single policy year, you can make
claims worth only INR 8 lakhs. Your spouse may make claims worth INR 6 lakhs and you could
make claims worth INR 2 lakhs or vice-versa. Typically, family floater plans are ideal for young
nuclear families.

3. Senior Citizens Health Insurance

These health plans have been designed specifically keeping the medical needs and requirements
of senior citizens in mind. Most senior citizens policies offer additional cover, such as domiciliary
hospitalisation and even some psychiatric benefits. Since older citizens are more likely to have
health issues, these policies may require a full medical check-up beforehand and could be more
expensive than regular insurance policies.

4. Critical Illness Insurance

There are a number of lifestyle-related diseases that are on the rise. Health issues such as cancer,
stroke, kidney failure and cardiac diseases can be very expensive to deal with and manage long-
term. This is precisely why critical illness insurance policies have been created. They can either
be purchased as a rider or add-on with your regular health insurance plan or separately as their
own plan. These policies offer cover for very specific issues and often provide claim payouts as
a single lump sum payment after the diagnosis of a critical illness.

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 5. Group Health Insurance
Unlike individual and family floater policies, group health insurance plans can be purchased by
a group manager for a large number of individuals. For example, an employer can purchase group
insurance for all their employees or a building secretary may purchase such a plan for all the
residents of the building. These plans are fairly affordable, but they often only provide cover for
basic health issues. Employers often purchase these plans as an additional benefit for employees.

Benefits of Health Insurance

Purchasing health insurance is crucial for a number of reasons. Let's take a look at the most important
benefits of our health insurance policies:

1. Helps Deal with Rising Medical Costs

People purchase health insurance policies to safeguard their finances against ever-rising medical
costs. An accident or medical emergency could end up costing you more than a few thousand
rupees. With a medical insurance plan, you enjoy cover for everything from ambulance charges
to daycare procedures, making it easier for you to get the care you need to recover.

2. Critical Illness Cover

Many health insurance policies will also offer cover for critical illnesses at an additional cost.
Given the rising incidence of lifestyle-related diseases today, this is another crucial cover to have.
You will be provided with a lump sum payout in case you are diagnosed with any of the covered
critical illnesses. These issues are often very expensive to deal with and manage, so critical illness
cover is another vital benefit of having health insurance.

3. Easy Cashless Claims

Every health insurance provider will tie-up with a number of network hospitals where you can
enjoy cashless claims. This makes the entire process of receiving emergency medical care much
easier. At a network hospital, you aren't really required to pay for any of the covered treatments.
For all valid claims, we'll take care of the medical costs, without you having to pay for anything,
except non-covered expenses and the mandatory deductibles.

4. Added Protection
If you enjoy cover under a group health insurance plan, you may wonder why you should
purchase your own health insurance policy. Well, individual health insurance plans offer provider
more and better cover than group plans. Additionally, if you happen to leave the group at any
time, you risk losing the cover, which could make you and your finances vulnerable.

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 5. Tax Savings
Under Section 80D of the Income Tax Act, 1961, premiums paid towards the upkeep of health insurance
policies are eligible for tax deductions. For a policy for yourself, your spouse, your children and parents
below the age of 60, you can claim a deduction of up to INR 25,000 per year from your taxable income.
If you've also purchased a policy for a parent who is over the age of 60, you can claim an additional
deduction of INR 50,000.

How Health Insurance Works?

Like every kind of insurance policy, health insurance also helps you deal with the financial repercussions
of an accident or emergency. Let's take a look at how health insurance actually works. The process starts
when you apply to purchase a plan. Depending on your age, medical background, sum insured required
and the type of plan youve selected, you will be provided with premium quotes. In some cases, you might
be asked to do a few medical tests before the insurance provider decides whether they'd like to provide
you with the required cover. Once the terms and conditions are finalised, you will be provided with a
policy. Each policy comes with a few waiting periods. The initial waiting period is only for a few weeks
or a month. During this time, you will not be able to make any non-emergency claims. Let's say that you
require some kind of surgery after the waiting period. If you're able to get the treatment in a network
hospital, you can let us know about the surgery, and we'll get in touch with the hospital directly to settle
all the payments. When you're discharged from the hospital, you will only have to pay for additional
expenses that are not covered and the voluntary co-pay amount, if any. If you're getting treatment in a
non-network hospital, you can make all the payments and then file for a reimbursement claim. Either
way, you can get the treatment you require without fretting about burning a hole through your pocket.

Need for Health Insurance

Medicare or medical costs are rising year on year. As a matter of fact, inflation in medicare is higher
than inflation in food and other articles. While inflation in food and clothing is in single digits, medicare
costs usually escalate in double digits.

For an individual who hasn't saved that much money, arranging for funds at the eleventh hour can be a
task. This is particularly daunting for seniors, given that most ailments strike at an advanced age.

One way to provide for health-related / medical emergencies is by taking health insurance. Health
insurance offers considerable flexibility in terms of disease / ailment coverage. For instance, certain
health insurance plans cover as many as 30 critical illnesses and over 80 surgical procedures. The
insurance plan disburses the payment towards surgery/illness regardless of actual medical expenses. The
policy continues even after the benefit payment on selected illnesses.

With health insurance, you are assured of a more secure future both health-wise and money-wise. This
makes health insurance policies critical for individuals, especially if they are responsible for the financial
well-being of the family.

- 20 -
How to Choose Health Insurance Plan?
There are several health insurance policies available in the market. To enjoy cover without any hassles,
you need to find the policy that best looks after your unique needs. Here are some important factors to
consider while choosing a health insurance policy:

1. Check the Sum Insured

Many insurance providers have a limit on the maximum sum insured you can choose. If you'd
like a high sum insured, you need to find a health policy that offers you what you're looking for.
A good rule of thumb is to get cover that is a minimum of six times your salary. If you earn INR
1 lakh per month, look for a policy that offers at least INR 6 lakhs as the sum insured. You should
also look for other benefits. If you're planning on starting a family in a few years, make sure
maternity costs are covered. Of course, you will have to check the waiting period as maternity
benefits are subject to slightly longer waiting periods.

2. Scout the Network Hospitals

Different insurance providers may have different hospitals in their network. Ideally, look for a
policy that offers cashless claims at all the top hospitals in your city. You should also make sure
that your preferred hospital is on the list. This will make the entire process of getting the treatment
you want much easier.

3. Check the Fine Print

Every health insurance policy has various limits and sub-limits. You need to check the policy
documents thoroughly to understand exactly how much coverage you will get per treatment or
hospitalisation. For example, some policies may help cover the per day room cost, but only up to
INR 2,000 per day. If you happen to be in a hospital where the room rent is INR 4,000, you'd
have to pay for half the cost of the room. You should also check the limits of pre- and post-
hospitalisation expenses. Some plans offer cover for only 30 days pre-hospitalisation and 60 days
post-hospitalisation. Others offer 60 and 90 days respectively.

4. Look for Additional Benefits

Given that the insurance market is fairly competitive, different policies offer various benefits.
No-claim bonuses and the restoration of your sum insured are some of the most popular ones.
You should always check whether your chosen insurance policy will provide these benefits.
Always look for policies that offer you additional benefits.

5. Examine the Exclusions and Other Clauses

Every policy has its own exclusions or medical procedures and situations that it will not cover.
Make sure you check what's covered and what isn't before you purchase a plan. You should also
check if there's a co-pay clause, how much you will have to co-pay and what the waiting periods
are. Shorter waiting periods and voluntary co-pay are ideal.

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Difference Between Mediclaim Plan or a Critical Illness
Insurance Plan?
A mediclaim plan or health insurance policy works a little bit differently as opposed to a critical illness
insurance plan. Let's take a look at the differences between these plans:

 Type of Payout
Mediclaim plans are known as indemnity plans. This means that the claim amount you receive
will help offset costs as per actuals. These payouts are provided against actual medical costs and
bills.

On the other hand, critical illness plans offer a lump sum payout of the sum insured once you are
diagnosed with a covered critical illness. You can use the money to pay for treatment, repay debts
or even replace your lost income.

 What's Covered
Regular mediclaim policies offer cover against a wide range of issues. Everything from accidents
to surgeries, AYUSH and domiciliary treatments are covered under these policies.

Critical illness plans, on the other hand, provide a lump sum payment only for very specific
critical illnesses.

- 22 -
COMPANY PROFILE

- 23 -
 Star Health and Allied Insurance Co
Ltd

Type Public
NSE:
Traded as
STARHEALTH
BSE: 543412
ISI INE575P01011
N
Industry Financial services
Founded 2006; 17 years ago
Headquarters Chennai, Tamil Nadu, India
Number of locations 640+ (2021)
V Jagannathan,
Key people Dr. S.
Prakash,
Anand Roy
Health insurance
Products Travel insurance
Accidental
insurance
Revenue ₹10,610 crore (US$1.3 billion) (2022)
Operating income ₹−1,348 crore (US$−170 million) (2022)
Net income ₹−1,040 crore (US$−130 million) (2022)
Total assets ₹13,513 crore (US$1.7 billion) (2022)
Total equity ₹3,963 crore (US$500 million) (2022)
Number of employees 14,273 (2021)
Website www.starhealth.in

- 24 -
COMPANY PROFILE
Star Health and Allied Insurance Co Ltd is an Indian multinational health insurance company
headquartered in Chennai. The company provides services in health, personal accident and overseas
travel insurance, directly as well as through various channels like agents, brokers and online. Star Health
is also prominently into bancassurance having long standing relationship with various banks.

Star Health and Allied Insurance Co. Ltd. began its operations in the year 2006 in India. The company
has business interests in Health Insurance, Personal Accident and Overseas Mediclaim Policy. Since Star
Health Insurance in India has no other category of insurance to center and separate their attention to,
they generally employ their resources to aim at providing excellent services, designed products and use
core proficiency of innovation to offer the best to their customers. With more than 400 offices all over
India and around 8500 + hospitals network, Star Health Insurance Company Limited ranks amongst one
of the largest providers of health insurance plans.

Star Health and Allied Insurance Company Ltd. has a plethora of health insurance products on offer at
the lowest prices. This is to make sure that health insurance becomes a right to every individual human
being living in India. Star Health and Allied Insurance Company Ltd. is single-mindedly devoted to
providing the best health insurance policies in India. The company has already come into view as the
first stand-alone Health Insurance Company in India, dealing in mediclaim, personal accident and
overseas travel insurance. Star Health Insurance in India is targeting a capital base of Rs. 1050 crores in
future.

To talk about the Awards and Recognition won by the Star Health and Allied Insurance Co Ltd., there
are many. These awards add high value to the company’s good reputation and service value. To name
some of the awards won by Star Health in India over the years are: Best Health Insurance Provider of
the year by Business Today, Money Today Financial Awards 2016-2017, CII Industrial Innovation
Awards 2016 for Top 25 Most Innovative Company, W.H.O Award Of Excellence 2017 from the former
Honorable President of India Shri Pranab Mukherjee, Best Health Insurer - Outlook Money Awards
2016, Corporate Excellence Awards, Claims Service Company of the Year 2014 and many more.

Within a decade, Star Health Insurance Company has advanced through leaps and bounds. With a
countrywide customer base to sing their praises, Star Health Insurance Company Limited has raised a
high standard specifically in the sector of health insurance. Every victorious tale has been a stepping
ladder that has made the Star Health Insurance Company one of India's most trusted specialists in health
insurance with excellent service at cost-effective rates for customers belonging to all backgrounds given
that the company holds an unmatched reputation in terms of various health insurance services on offer.
Apart from the health insurance plans, Star Health Insurance Company has a number of special qualities
that they offer cordially and this is the reason why their products are distinguished from other insurance
providers in India and therefore their policies are highly sought after in India. If you are looking for the
reasons buy Star Health Insurance online, then here are a few.

Pan India Presence with More Than 430+ Branch Offices: Star Health Insurance Company operates
in all corners of the country. Therefore, the services offered by the company can be availed from
anywhere in India. In addition, Star Health has more than 430 branches across India to provide the best
in class health insurance solutions for all.

- 25 -
Cashless Hospitalization: Star Health Insurance Company offers the facility of cashless hospitalization
as well as reimbursement facility with their unique and exclusive health insurance coverage. The
company has the largest cashless network of hospitals across India through which you can avail cashless
treatment without spending a penny from your pocket in a hassle-free way.

India’s First Stand-Alone Health Insurance Company: One of the best reasons why you should go
for Star Health Insurance policy lies in the fact that Start Health is the very first stand-alone insurance
company in India. Therefore, Star Health Insurance plans are designed with special attributes that most
of the other insurance companies lack in general.

Hassle-free and Customer-friendly Claim Settlement: This is indeed the most significant reason why
you should go for Star Health insurance policies. The fact that Star Health Insurance Company has won
awards for settling claims has certainly empowered the company’s products and productivity with special
distinction. The claim settlement procedure under Star Health insurance policies is quick, transparent,
hassle-free and customer-friendly. The company offers direct claim settlement without any interference
of TPA.

Personalized Doctor Visit: Star Health Insurance plans offer personalized doctor visits for all
policyholders getting hospitalized. This feature allows the insured persons to get special care whenever
they are hospitalized.

Wide Range Of Health Insurance Products: Star Health Insurance Company Limited has a broad
range of health insurance products on offer from which you can independently choose as per your very
own requirements or preferences. Star Health Insurance plans are available for individual, family, and
for parents. You can also avail travel and accidental care insurance from Star Health Insurance online.

Largest Network Hospital: Star Health and Allied Insurance Company Ltd. has the largest network of
hospitals. The company has 8400+ hospitals within its network. You can easily avail cashless treatment
from there.

Online Purchase and Renewal Facility: You can instantly renew or buy Star Health Insurance online
from the company’s online portal. In the same way you can get Star Health insurance quotes online as
well.

No Claim Discount: Star Health offers No Claim Discount upto 10% on policy renewal online. That
means you will be eligible for discounts as much as 10% on your Star Health Insurance renewal premium
if you don’t file a claim within a policy term.

Affordable Premium: If you think that you will have to make a huge payment to buy Star Health
Insurance online, it would be your mistake because Star Health offers health insurance policies at
affordable and tailor-made prices. Anyone living in India can buy Star Health Insurance online without
having to worry about the premium rates.

Customer Assistance: Star Health Insurance Company Limited provides 24x7 online and offline
support to help their customers’ out with various insurance related queries and claim support in a friendly
way.

- 26 -
PLANS
A number of effective and efficient health insurance plans are offered by Star Health Insurance online.
Below we are providing the best health insurance plans from Star Health with concise description.

Family Health Optima

This is a family floater plan from Star Health and it comes with extensive coverage options at an
affordable premium. Any person aged between 18 and 65 years can buy this Star Health Insurance policy
online. The policy comes with lifelong renewal option and free check-up benefit against every claim-
free year. A newborn baby can be covered under the policy from the 16th day. The policy offers coverage
for all day care procedures and it has auto recharge facility with no extra cost.

Star Super Surplus

This is one of the best health insurance plans from Star Health. The policy comes with high Sum Insured
option at an affordable premium and two plan options – Silver and Gold. Anyone living in India aged
between 18 and 65 years can buy this Star Health Insurance policy online for individual or family floater
basis. The policy covers pre-existing diseases after 36 months of waiting period.

Star Senior Citizens Red Carpet Health Insurance

As the name suggests, this policy is specifically designed for the senior citizens who are aged between
60 and 75 years and one need not take any pre-insurance medical test to buy it. Pre-existing diseases are
covered from the second year under the policy. The plan comes with a high Sum Insured of up to 10
lakhs and also offers lifetime renewal facility. You can avail a discount of 5% on the premium if you
buy this Star Health Insurance policy online.

Star Health Insurance Comprehensive Plan

This policy is designed to cover both individual and family including your spouse and dependent
children. Anyone living in India aged between 18 to 65 years can buy this Star Health Insurance plan
online. Dependent children are covered from the age of 3 months until the age of 25 years. The policy
imposes no cap on treatment costs and room rent and it covers 400+ day care procedures. It also offers
coverage for personal accidental death and permanent disability equivalent to the health insurance cover
at no extra cost. The policy offers 100% increase in the Sum Insured on renewal against claim free years.

Medi Classic
This plan is designed for individuals only. It can be purchased by any one aged between 5 months and
65 years. The policy comes with an automatic restoration of complete Sum Insured by 200%. It covers
101-day care procedures and the No Claim Bonus of 5% can go as high as 25% against each claim free
year. The policy covers pre-existing diseases after 48 months of waiting period and it can be procured
by an HIV positive person being subjected to applicable conditions.

- 27 -
Star Unique Health
This is an out of ordinary two-year health insurance plan for individuals. Any individual aged between
18 to 65 years can enroll for this Star Health Insurance policy. The plan pays for the pre and post
hospitalization expenses as per policy limits. You can pay the premium for this policy in two
installments.

Star Family Delite Insurance Policy

This Star Health Insurance plan is designed for the family and it offers coverage for self, spouse and
dependent children. The policy can be taken by anyone in India aged between 5 months and 65 years.
This plan covers pre and post hospitalization expenses as well as specified day care procedures.

Star Gain Health Insurance Policy

This health insurance plan provides coverage for both individual and family and covers both inpatient
and outpatient treatments. Any individual aged between 5 months and 65 years can opt for this plan. You
can also avail No Claim Discount up to 10% on your Star Health Insurance renewal.

Star Criticare Plus

This Star Health insurance policy offers coverage for 9 specified critical illnesses. The policy offers lump
sum payment on diagnoses of critical illness and it also covers non-allopathic treatment as per policy
limits. The policy can be procured by any individual aged between 18 and 65 years.

Diabetes Safe
As the name suggests, this policy is particularly designed for diabetic patients and it can be purchased
on both individual and family floater basis. The policy covers the hospitalization expenses in case of
hospitalization due to both type of diabetes – 1 and 2. Two types of plans – Plan A and Plan B are
available under the policy. Plan A has no waiting period whereas there’s a 15-month waiting period for
Plan B. The policy covers 400+ day care procedures and offer automatic restoration of total Sum Insured.
This Star Health policy also pays for the costs of artificial limbs as per specified policy limits.

Star Health Gain

This is a family floater health insurance plan that is designed to cover the costs of an entire family in the
range of Rs. 1 Lakh and Rs. 5 Lakh. Outpatient benefits are offered along with general benefits under
this plan. Maximum 2 adults and 3 children in a family aged between 5 months and 65 years can be
covered under this Star Health Insurance policy.

- 28 -
Star Wedding Gift
This Star Health Insurance plan is designed to cover the expenses linked with child delivery i.e. both
Normal and Caesarean. The policy also offers coverage for newborn baby. It provides cover for non-
allopathic treatment as per specified limits and also covers regular hospitalization expenses. The policy
can be procured for 1 and 2 year term and it requires no pre-medical screening. Any couple aged between
18 to 40 years can buy this policy.

Star Health Insurance Care Plan

You can avail this policy for self or your family. It comes with pre and post hospitalization coverage.
The policy also provides hospital cash benefit if the treatment is done from a government hospital.
Anyone living in Tier 1 and Tier 2 cities in India aged between 18 and 65 years can avail this policy.
The policy offers whole life renewal benefit.

Star Cancer Care Gold

This Star Health Insurance policy is the very first insurance product specifically designed for any person
diagnosed with cancer. Two types of Sum Insured options are available under the policy – Rs. 3 Lakhs
and 5 Lakhs. Anyone aged between 5 months to 65 years suffering from cancer illness can buy this
policy. The policy term is 1 year. Spouse/Dependent Children/ Dependent Parents can be covered under
the policy if it is purchased by an individual.

Star Cardiac Care Insurance Policy

This policy is specifically for the protection of heart patients aged between 10 and 65 years. This Star
Health Insurance plan is available in two plan options – Gold and Silver. The policy covers 405 day care
procedures and covers the expenses of pre and post hospitalization as per specified limits.

Star Micro Health Insurance

This is a basic mediclaim insurance from Star health at an affordable price. The policy covers
hospitalization expenses as per specified limit and also covers ambulance charges for the transportation
of an insured person. Anyone aged between 5 months and 65 years can buy this Star Health Insurance
online in India.

Star Net Plus

This is an exclusive policy for HIV+ infected persons in India. Various NGOs, Governmental agencies
and other registered societies serving persons who have been diagnosed with HIV can offer their
beneficiaries/ members to avail this insurance.

- 29 -
Star Health Travel Insurance
The travel insurance policies from Star Health are designed to provide maximum coverage against
various travel related contingencies while on an overseas trip. The company has four types of travel
insurance policies on offer namely: Star Travel Protect Insurance Policy, Star Family Travel Protect
Insurance Policy, Star Student Travel Protect Insurance Policy and Star Corporate Travel Protect
Insurance Policy.

These policies cover emergency medical expenses including medical evacuation and transportation, Loss
of checked in baggage, Legal Liability for bodily injury or property, Delay of checked in baggage,
Personal Accident, Dental emergency expenses in case of an accident etc. You can instantly buy Star
Health Travel Insurance policy online.

Star Health Accident Care

Star Health Accident Care plan covers Accident death, Permanent and temporary disablement. The
policy also offers enhanced weekly reimbursement up to Rs.15000/- per week (maximum 100 weeks),
Compensation against Permanent Total Disablement for 150% of the Sum Insured, Cumulative bonus
for 5% per annum (maximum 50%), and Educational Grant for dependent children.

Operations
Currently Star Health has 12800+ employees and 640+ branch offices all over India.

Initial public offering

Star Health Insurance launched its ₹7,249 crore (US$910 million) initial public offering (IPO) in
December 2021. After the issue was undersubscribed, it reduced the IPO size to ₹6,400 crore
(US$800 million).

Financials
Star Health has underwritten a gross written premium of Rs.6865 Cr during the FY 2019-20 and has built
up a promising path with an appreciable net worth of Rs.1889 Cr, as on 31 March 2020. As of 2021, it
reported a total revenue of Rs.5446.82 with a loss of Rs.825.59 crores.

- 30 -
Overview
Star Health & Allied Insurance Co. Ltd. is an Indian health insurance company headquartered in Chennai.
They began their operations in 2006 as India's first standalone Health Insurance provider. Star Health
Insurance offers innovative services and products in health, personal accident, and overseas & domestic
travel insurance aligned with the needs of the Indian Market.

With meticulously crafted insurance policies, Star Health is keen on addressing the unique health needs
of people and providing coverage to them. Having covered more than 16.9 crore lives of people since its
inception, the company is scaling up its services to ensure that all lives are covered under Health
Insurance.

Being the Health Insurance Specialist, Star Health is keen on providing timely assistance in times of
health emergency. In that regard, the company has a dedicated in-house claim settlement team to process
and settle the claims swiftly. Star Health has an excellent track record of settling more than Rs. Four
crores as claim amount every hour.

Understanding the financial hardships that people may face during emergency times, Star Health has
been extending cashless treatment facilities in its wide network of hospitals. With more than 14,000
Network Hospitals spread across the country, Star Health ensures the quality of healthcare services to its
customers.

Star Health offers products for every market sector, from individuals, to families, and corporates. With
lakhs of agents serving the customers and driving the business on a huge scale, Star Health also operates
directly through various other channels including digital, aggregators, brokers, etc., to cater to the needs
of all sections of society. Star Health is also a leader in the field of bancassurance and has a long-standing
partnership with numerous Banks.

Along with offering a broad selection of specialist products and Health Insurance, Star Health also offers
free Telehealth consultations with their expert team of in-house doctors, along with a free second medical
opinion if necessary.

The most significant element for Star is the customer experience and service. They have a 24x7
multilingual call centre support and dedicated claims assistance. Additionally, customers can benefit
from hassle-free internal claim resolution without TPA (third party administrator).

In this digitally driven world, Star Health has adapted to the current trend by digitally transforming itself
with innovative technologies to guarantee the quality of service, ease of access and seamless user
experience for all its customers.

- 31 -
HEALTH INSURANCE
Individual Health Insurance • Health Insurance For Family • Health Insurance For Parents • Maternity
Insurance • Diabetes Safe Insurance Policy • Top Up Health Insurance • Star Out Patient Care Insurance
Policy • Star Hospital Cash Insurance Policy • Group Health Insurance

ACCIDENT INSURANCE
Personal Accident Cover Policy • Family Accident Cover Plan

TRAVEL INSURANCE
Overseas Individual Travel Insurance • Student Travel Insurance • Corporate Travel Insurance

- 32 -
BOARDS OF DIRECTORS & MANAGMENTS

Name
Anand Shankar Roy
Aneesh Srivastava
Anisha Motwani
Berjis Minoo Desai
Chandrashekhar Dwivedi
Deepak Ramineedi
Jayashree Sethuraman Co. Secretary & Compl. Officer
Kaarthikeyan Devarayapuram Ramasamy
Kapil Punwani
Nilesh Kambli
Rajeev Krishnamuralilal Agarwal
Rajni Sekhri Sibal
Rohit Bhasin
Sriharsha Anant Achar Chief Human Resource Officer
Subbarayan Prakash
Sumir Chadha
Utpal Hemendra Sheth
V Jayaprakash
Venkatasamy Jagannathan
Designation
Managing Director
Chief Investment Officer
Independent Director
Independent Director
Actuary
Nominee Director
Independent Director
Chief Risk Officer
Chief Financial Officer
Independent Director
Independent Director
Independent Director
Managing Director
Nominee Director
Nominee Director
Chief Compliance Officer
Chairman & CEO

- 33 -
COMPANY PROFILE
Magma Hdi General Insurance Company Limited is a Public incorporated on 26 June 2009. It is
classified as Non-government Company and is registered at Registrar of Companies, Kolkata. Its
authorized share capital is Rs. 2,500,000,000 and its paid-up capital is Rs. 2,107,672,450. It is involved
in Insurance and pension funding, except compulsory social security.

Magma Hdi General Insurance Company Limited's Annual General Meeting (AGM) was last held on 22
July 2021 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed
on31March2021.

Directors of Magma Hdi General Insurance Company Limited are Mayank Poddar, Kailash Nath
Bhandari, Sanjay Chamria, Sunil Mitra, Vegulaparanan Kasi Viswanathan, Jens Holger Wohlthat, Rajive
Kumaraswami, .

Magma Hdi General Insurance Company Limited's Corporate Identification Number is (CIN)
U66000WB2009PLC136327 and its registration number is 136327.Its Email address is
companysecretary@magma-hdi.co.in and its registered address is Development House 24 Park Street
Kolkata Kolkata WB 700016 IN .

Current status of Magma Hdi General Insurance Company Limited is - Active.

Magma HDI General Insurance Company Limited is a joint venture between Magma Fincorp
Limited, one of India's largest NBFCs and HDI Global SE Germany which is part of the Talanx Group,
a multi-brand conglomerate that has a presence in over 150 countries.

Magma Hdi General Insurance Company Limited is an unlisted public company incorporated on 26 June,
2009. It is classified as a public limited company and is located in Kolkata, West Bengal. It's authorized
share capital is INR 350.00 cr and the total paid-up capital is INR 211.38 cr.

Magma Hdi General Insurance Company Limited's operating revenues range is Under INR 1 cr for the
financial year ending on 31 March, 2012. It's EBITDA has decreased by -13.74 % over the previous
year. At the same time, it's book networth has decreased by -2.79 %.

The current status of Magma Hdi General Insurance Company Limited is - Active.

The last reported AGM (Annual General Meeting) of Magma Hdi General Insurance Company Limited,
per our records, was held on 28 July, 2022.

Magma Hdi General Insurance Company Limited has eight directors - Mayank Poddar, Sanjay Chamria,
and others.

The Corporate Identification Number (CIN) of Magma Hdi General Insurance Company Limited is
U66000WB2009PLC136327. The registered office of Magma Hdi General Insurance Company Limited
is at Development House 24 Park Street, , Kolkata, West Bengal.

- 34 -
The company was incorporated in 1988 by Mayank Poddar and Sanjay Chamria as Magma Leasing
Limited. The company commenced operation in 1989. In 1996, the company entered the retail financing
business for vehicles and construction equipment.

In 2000, with the acquisition of Consortium Finance Ltd, the company expanded its network across
Northern India. In 2007, Shrachi Infrastructure Finance merged with the company increasing the
company's footprint and status in southern and western India. In the same year, the company formed a
joint venture with International Tractors Limited (ITL) to enter tractor the financing business. In 2008,
the company re-branded and renamed itself as Magma Fincorp Limited.

In 2009, the company inked a joint venture with German insurer HDI Global to enter the general
insurance business. The company commenced operations in 2012. The same year, the company pitched
up a 7% stake in the newly formed Experian Credit Information Company of India Pvt Ltd, the Indian
arm of the global credit information services company. In 2011, global PE firm Kohlberg Kravis Roberts
and International Finance Corporation, an arm of the World Bank Group, invested about $100 million in
the company. In 2012, the company acquired GE Money Housing Finance and home equity loan
portfolio of GE Money Financial Services from GE Capital India.

In March 2015, Magma Fincorp received Rs. 500 Cr investment from KKR, Indium V and, LeapFrog
Investments.In 2016, Mayank Poddar stepped down as the chairman. In April 2018, Magma Fincorp
raised Rs. 500 Cr investment through.

2021–present: Under Poonawalla Group

The company announced a major financial investment by Rising Sun Holdings, an Adar Poonawalla
controlled company in February 2021. Magma HDI announced a capital infusion in March 2021 by
ICICI Ventures, Cyza Chem, and Morgan Stanley. After the investment by Rising Sun Holdings, the
name of the company was changed from Magma Fincorp to Poonawalla Fincorp on 22 July 2021.

In December 2022, Poonawalla Fincorp announced that it will sell its subsidiary Poonawalla Housing
Finance to Perseus SG, a TPG Global entity, for ₹3,900 crore (US$490 million).

- 35 -
 Poonawalla Fincorp Limited

Type Public
 BSE: 524000
Traded as  NSE: POONAWALLA

Industry Financial services

Founded 1988
Pune,
Headquarters
Maharashtra,
India
Key people Adar Poonawalla (Chairman) Abhay Bhutada (Managing Director)
Business loan, Professional loan, Personal loan, Home loan, Loan against
Services
property, Pre-owned car loan, Medical equipment loan
Revenue US$ 303 million (₹ 2219 crores) (2020)
Operating US$ 135.2 million (₹ 989.24 crores) (2020)
income
Net income US$ 168.01 million (₹ 1229.8 crores) (2020)
Website poonawallafincorp.com

BOD
Director Name
1)MAYANK PODDAR Director
2)KAILASH NATH BHANDARI Director
3)SANJAY CHAMRIA Director
4)SUNIL MITRA Director
5)VEGULAPARANAN KASI Director
VISWANATHAN
6)JENS HOLGER WOHLTHAT Director
7)RAJIVE KUMARASWAMI Managing
Director

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REVIEW LITERATURE

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REVIEW OF LITERATURE

This chapter presents the review of literature to identify and understand the implications of
different issues related to consumer perception and satisfaction towards public and private life
insurances companies in India. The literature on life insurance industry in India includes books,
compendia, theses, dissertations, study reports and articles published by academicians and
researchers in different periodicals. The review of this literature gives an idea to concentrate on
the unexplored area and to make the present study more distinct from other studies. The literature
available is presented below:
Baal N. and Sandhog H. S. (August 2011), a study on Life Insurance Corporation of India
(LIC) the capital demanding business, supplies the most important financial instruments to
customers directed at safety as well as long term savings. The present study by examines the
parts affecting agent’s perception towards Life Insurance Corporation of India. Moreover,
analysis of one way arrangement has also been performed to test the important results to show
that no important differences exist among various groups of respondent regarding to their
apprehension towards Life Insurance Corporation of India.

Meera C. and Eswari M. (November 2012), in modern aggressive environment services are
ameliorate accumulating more denotation. Nowadays, greater absorption is paid to all the bank
customer touch points, address to optimize the reciprocal and user friendly services. The aim of
the study by is to crumb the customers bliss towards cross selling of health insurance products and other
services accomplished by private sector banks.

Singh H. and Loll M (December 2013), states that life insurance is one of the fastest growing
and emerging markets in India. Insurance diffusion in rural area – the insurance industry has an
acceptation grant in socio-economic development. Objective of the present study is to appraise
the opportunities for insurers in the rural market and what would be new action to tap the highly
underinsured rural area.
Friar F. and Khanbashi M. et al (December 2014), this study is one of the most conscious
actions taken in alluring and gratifying needs of customers is chattering a charismatic
information mechanism and feedback process between organization and customers. The aim of
this study by, is finding of the variation between anticipation of the employees and customers
towards service quality in insurance industry of Iran. The study revealed that there is cogent
difference between the anticipation of staff and customers towards the tangibles dimension while
the anticipation of both the groups towards the other dimensions is homogenous.

Sharma M. and Vijay T. S. et al (January 2015), the animus of this study is to assay the
brunt of demographic factors on the level of satiety of investor’s contra insurance policies. The
study entraps the impact of demographics factors on the satisfaction of investors towards
insurance policies. This paper also evaluates cogent relationship between demographic factors
and overall satisfaction of the customers towards the insurance policies.

- 38 -
Gautam V and Kumar M (March 2016), the present research is an effort, to allegories the
attitudes of Indian consumers towards the insurance services. The study has been made by
accumulating the antiphon of consumers through structured questionnaire on five point Laker
scale. The decree of the present study may act as an important aspect for the insurance
companies in Indian market to flounce marketing strategies established on socio demographic
and economic factors.

Ansari Z. A. (March 2017) in the present study examines the attitude of individuals towards
different kinds of risks and scope they prefer in Saudi Arabia. The study by further examine how
the use of insurance particularly the binding insurance has altered the perception towards risks
and their future behavior towards buying other insurance policies and also what features the
users of insurance suggest in their insurance policy contract. The study is based on primary data
collected aimlessly from current users of binding insurance policies that is motor insurance and
health insurance and life insurance.

Bihani P. and Bhowal A. (April 2018), has said that life insurance industry is in an
augmentation aspect and cyclic advancements are going on with respect to products and services.
The most alluring finding of the study was the severity of customer solution experienced is more
that degree of customer solution expected.
Purusothaman U. R. (July 2019) has said that India has extensively been known for the
divergence of its culture, for the amplitude of its people and for the accessibility of geography.
Its basin of technical skills, its base of an English speaking populace with an increasing
disposable income and its blooming market have all co adjure and accredit India engrosses as an
operable partner to global industry. Hence, the study revealed that India ranks fifth on the overall
index, as the number of points is more desirable on the country economy development index and
the real estate market index, but fairly low on the regulatory index.

Damtew K. and Pagidimarri V. (December 2020), different policy holders by are basic for
insurers for their life and wealth in today’s opposing business environment .Customers can
purchase various and more policies from the same provider and restore their agreements before
end date if they have belief on their relevant providers. This reverie aims to analyze the role of
trust in building customer faithfulness in the insurance sector. In order to earn this aim, non-
experimental reverie was made for this reverie and to evoke policy holder’s perception,
systematic questionnaires were designed and then research is made and outcomes are described.

Bapat H. B. and Soni V. et al (April 2021), reverie states the requirement for insurance is
as old as commerce and trading that exists in the world. Uncertainty is built in to life, commerce,
trading etc. where insurance will provide protection to it. The reverie finds out their present
levels of the products offering on the basis of Seroquel scope. This reverie provides sagacity to
the practicing administrator to recognize the gap in take influence by aims the expected quality
product.

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 Bhowal A. and Pankaj B. (April 2021), Life insurance industry is in growing juncture and
daily new developments are going on in regards to products and services. Given the empirical
research methods and specially contriving scaling technique, the study resulted that the
difference between the degree of customer cost conventional from the insurance and the degree
of the customer cost experienced is statistically not cogent.

Choudhari P. S. (April 2021), due to the aftermath of the various elements of the
globalization, customers socio-economic culture has heretofore been changed and human
interactions are now cogently being recouped by the interactions of human – technology where
in service sector, the information technology is playing the role in supplying quality of services
to the customers in order to amuse the customers in the present competitive market. In this study,
devout observation was taken place about the propitiating impact of the information technology
on the anticipated service quality and customer satisfaction link in life insurance services.

Barik B. and Patra R. (June 2021), in his study stated that the Indian life insurance sector is
amplifying at an accelerate rate. The study revealed that life insurance business in India needs a
special care as compared to other business, both theory and practice to be integrated to provide
the best services to the policy holders. Hence, this study by the researchers has been done with
an intention to help with suggestion and recommendation that will help both academician and
industry personnel to re-engineer their thought in insurance sector.
Chand M. (June 2021) studies the main change of life insurance industry in India is the
gapping up to private and global players. The study will reveal the aspect of private insurance
players in the areas and like number of policies glided, amount of premium money collected,
agent or broker commission expenses, and operating expenses from 2001 -2012.

Prasad K. and Sravanthi V. (October 2022), insurance industry is an expand-acclimatized

industry. In India, the industry has commenced to disclose the promising after liberalization and
privatization of the sector. The insurance industry study by has achieved cogently in India’s
growth story in past few years. These two are often used to determine the level of growth of the
insurance sector in a country.

Dash B. and Mohanty Betal (November 2022), this research reverie by is focused on
effect of customer relationship management fashion on insurance sector in Odisha market. In this
reverie customer’s belief have been gathered through a structured questionnaire to comprehend
the effectiveness of CRM implementation in association with the companies like Aviva, LIC of
India, ICICI Prudential, Birla Sun Life and Reliance.
Satya K. K.V. R. and Radha B. et al (December 2022), the study done by has an objective
to study osmosis and enlargement of insurance industry. The sector was widened homogenous
enlargement after liberalization but during last four years, contraction in business sales or
earnings is recorded. In 2005, private sector has opened many offices and LIC opened many in
numbers during 2009.
.

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OBJECTIVE

- 41 -
OBJECTIVE

 To study medical health insurance policies in India.

 To compare policies insured by star health and magma HDI general insurance company.
 To find out which company policy is better for customer.
 To know about the customer perception about various health insurance plans available in the
market.
 To know the awareness about benefits health insurance plans.

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SCOPE OF THE STUDY

- 43 -
SCOPE OF STUDY

 These study cover only medical health insurance and insurance policy.
 Reference is taken of only two company – Star Health and Magma HDI General Insurance
Company.
 To study of four different policies
 The study is focused primarily on analysis of various insurance avenues along with Health
Insurance to study the consumer preference towards Health Insurance with reference to
insurance policies.
 The findings will reveal about Insurance investments as a better option.

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LIMTATION OF THE STUDY

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LIMITATION OF THE STUDY

There were certain limitations in undertaking this research work .As it is understood that the
Limitation are a part of the project they have been overshadowed by the benefits of the study.

 The survey conducted may not be considered as comprehensive as only limited respondents
Could be contacted because of the time constraint.

 Objectives the purpose of the study and the question had to be explained to the respondent
and in the context their responses may be biased.

 Some of the respondents were reluctant to give their responses.

 Only limited sample size had been considered for the study and therefore. the conclusions
Drawn based on the may not be a reflection of the entire population.

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RESEARCH METHODOLOGY AND
DATA COLLECTION

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RESEARCH METHODOLOGY

Research is a process which involves the step like defining the problem identifying research objective
for emulating research hypothesis collection and interpretation of data deriving finding consolidated and
identifying the action plan.
Research is well plan activity which is design and implemented to provide the data for solving important
genuine and recurrent problem. Research also be send as a moment from the know to unknown fact.
Research comprises of two words “re and search”, while “re” implies a repetitive or iterative process.
“Search” denotes making a thorough examination of or looking over care full in order to find something.
Different research have defined in various way due to its wide scope, but in general research, can be
defined as scientific profess where new facts, ideas and theories are establishment or proved. I different
areas of knowledge. Research aims at adding to existing stock of knowledge for the betterment of worlds.

According to John Best, “Research is a systematic activity and the development of an organized body of
knowledge.”
According to Waltz and Bussell, “Research” Is a systematic precise process employed to gain solution
to problem or to discover and intertie new facts and relationships.

Methodology in research is defined as the systematic method to resolve a research problem through data
gathering using various techniques, providing an interpretation of data gathered and drawing conclusions
about the research data.

Research methodology is a way of explaining how a researcher intends to carry out their research. It's a
logical, systematic plan to resolve a research problem. A methodology details a researcher's approach to
the research to ensure reliable, valid results that address their aims and objectives. It encompasses what
data they're going to collect and where from, as well as how it's being collected and analyzed.

A research methodology gives research legitimacy and provides scientifically sound findings. It also
provides a detailed plan that helps to keep researchers on track, making the process smooth, effective
and manageable. A researcher's methodology allows the reader to understand the approach and
methods used to reach conclusions.

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Having a sound research methodology in place provides the following benefits:

 Other researchers who want to replicate the research have enough information to do so.
 Researchers who receive criticism can refer to the methodology and explain their approach.
 It can help provide researchers with a specific plan to follow throughout their research.
 The methodology design process helps researchers select the correct methods for the objectives.
 It allows researchers to document what they intend to achieve with the research from the outset.

Qualitative
Qualitative research involves collecting and analyzing written or spoken words and textual data. It may
also focus on body language or visual elements and help to create a detailed description of a
researcher's observations. Researchers usually gather qualitative data through interviews, observation
and focus groups using a few carefully chosen participants.

This research methodology is subjective and more time-consuming than using quantitative data.
Researchers often use a qualitative methodology when the aims and objectives of the research are
exploratory. For example, when they perform research to understand human perceptions regarding an
event, person or product.

Quantitative
Researchers usually use a quantitative methodology when the objective of the research is to confirm
something. It focuses on collecting, testing and measuring numerical data, usually from a large sample
of participants. They then analyze the data using statistical analysis and comparisons. Popular methods
used to gather quantitative data are:

 Surveys
 Questionnaires
 Test
 Databases
 Organizational records

This research methodology is objective and is often quicker as researchers use software programs when
analyzing the data. An example of how researchers could use a quantitative methodology is to measure
the relationship between two variables or test a set of hypotheses.

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DATA COLLECTION

Primary Data
It is first hand data, which is collected by researcher itself. It is achieved by a direct approach and
observation from the officials of the company. But this research project is solely based on the secondary
data collected.
Secondary Data
The secondary data either from an internal source of an organization or from the published sources like
reports and journals. The purposes of data may vary from that of the current study. Hence few portions
of this data may be used for current research problem.
Secondary Data are the data that are collected and are already collected and are only analyzed by different
sources. These are as follows:
 Books.
 I collected the secondary data from internet of insurance.
 Manuals of various companies.

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DATA ANALYSIS
&
INTERPRETATION

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1) Question

1. Gender

A. Male 34

B. Female 16

Percentage

32% 68%

Female Male

Interpretation:-In no of respondents 32% are female & 68% are male.

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2) Question

2. Percentage Analysis

Age of the respondent

Satisfaction level No.of respondent percentage

Highly satisfied 10 24.2%

Satisfied 20 40.3%

5 8.1%
Neutral
Dissatisfied 11
17.7%
4 9.7%
Highly dissatisfied

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 Customer Feedback
45

40

35

30

25

20

15

10

Highly Satisfied Neutral Dissatisfied Highly Satisfied

Satisfied

Number of Respondent Percentage

Interpretation-

From the above graph is shown that maximum number of respondent 40 (i,e,50%) is coming under
age group of 26-45 years and minimum number of respondents 7(i,e,8.7%) above age group of 60
years.

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3)Question-

Do you think health insurance is a good investment options?

A.Low cost 06

B.High returns 08

Diversification 21
D.High liquidity 02

E.Safety &transparency 05
F. Tax saving 08

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 percentage

Low Cost High Return Diversification High Liquidity Safety & Transparency Tax Saving

Interpretation:- From the above chart it is shown that people think the health insurance is a
good investment option because it is diversified in many securities.

56
4)What is the most important factor which influence your investment?

A. High return 28

B . Safety of capital 10

B. Regular income 05
C. Liquidity/marketability 07

IMPORTANT FACTORS WHICH INFLUENCE INVESTMENT

Percentage

high return safety of capital regular income liquidity/marketability tax benefitt

Interpretation:-From the above chart it is shown that most important factor which
influence investment is high return. People prefer to investment because they are seeking for
higher return.

57
5) If offline-what is your preference?

A. Direct 18

B. Financial advisor 32
Percentage

direct financial advisor

PREFERENCE OF OFFLINE

Interpretation:- From the above chart it is shown that most of the people who preferred
offline mode of investment also prefer invest through financial advisor because they don’t want
take risk in investment

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FINDINGS

59
FINDINGS
1. From the above graph it is shown that maximum number of respondents are coming under age
groupof 26-45 years and maximum number of respondents are above age group of 60 years.
2. The major finding of the study is that the maximum numbers of respondent are graduates while
themaximum numbers of respondents are SSC.
3. Here we find out that maximum numbers of respondents are corporate employee and less no
ofrespondents are others among our target population.
4. It is concluded that most of the respondents are aware about the health insurance plans.
5. It observed most of the respondents have health insurance policy.
6. It is observed that most of the respondents and handling policies with a maximum premium
ofrs.5001-10000.
7. There is no significant relationship between duration of the policy and selection of star
healthinsurance.
8. There is no significant relation between occupation and satisfaction level of the respondents.
9. There is no significant relation between the annual premium and surveyor reach.
10. There is no significant relation between time period of claim and satisfaction level

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CONCLUSION

61
CONCLUSION:-

1) The study has been able to accomplish objection, by thoroughly analyzing and
identifying the awareness of the customers of star health & megma health limited
strengths and weakness of health policy among the clients of star health & megma health
insurance Company and to identify claim settlement process of health insurance policies
& Mediclaim policy.
2) The outcome of the study has proved that the performances of the company is
outstanding in making awareness about health insurance plan in the non -life-insurance
segment and that the company has a higher reputation among customers and company
have great awareness among respondents. we can also conclusion that respondents of the
study are satisfied with company product and services.

3) It is also concluded that the company could initiate various steps based on the
suggestions. The company by adopting some of the recommendation. If not all. can further
improve its performance and occupy a leading position among other competitors in the
non-life insurance market in future years.

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BIBLOGRAPHY

63
Newspaper:-
 The times of India
 The economic times
 The business standards

Website:-
 www.starhealth.in
 poonawallafincorp.com

BOOKS:-
 Insurance institution of India books

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THANK YOU

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