A STUDY ON CONSUMER BUYING BEHAVIOUR FOR

INDIVIDUAL HEALTH INSURANCE IN BHUBANESWAR

SUBMITTED TO:
Dr. (Prof.)R.N. Subudhi
Dr. (Prof.) Sumita Mishra
SUBMITTED BY:
MS. PRATIVA TRIPATHY
PhD Scholar, ROLL NO. 1881129

MR. PRASANT KUMAR ROUT

PhD Scholar, ROLL NO:1881128
Introduction
 The purpose of this study is to find out the factors influencing the buying
pattern of Health Insurance products among the consumers of
Bhubaneswar.
 Health Insurance is an effective tool to mitigate the risk associated with
unforeseen medical exigencies. But unfortunately awareness for such
products is very low in Bhubaneswar. There are some inherent structural
issues for such low buying pattern of health insurance.
 The present study aims at analyzing the causes of the present dismal
awareness and low penetration of insurance coverage. The purpose of the
research is also to study the purchasing capacity of the consumers of
Bhubaneswar for the existing products that are available in the market.
 As socio economic development is very much linked to providing financial
stability to the under developed areas of our country, this study would throw
light on various factors that can be suitably taken into account for
formulating policies and devising new health insurance products .
Objective of the study
 To assess the individual awareness about Health Insurance.

 To know the preference of individual regarding health insurance.

 To know the factors influence the buying pattern.

 To evaluate consumption patterns of health insurance.

 To assess the effectiveness of services provided in Bhubaneswar.

 To assess impact of their residing locality (urban vs. rural) on

buying pattern.
Research Question
 What psycho-socio-economic factors affect the buying decisions
of insurance consumer in Bhubaneswar.
 What can be done to improve the sale of health insurance in
Bhubaneswar ?
 What new products the insurance firms bring to improve the
sale?
 What is the current level of sale vis a vis against the all India
average?
 RESEARCH METHODOLOGY
 The study is purely exploratory and conclusive in nature relies on both
primary and secondary data. The data collected from primary sources which
consisted of customers involved in health insurance markets. For collection
of primary data survey method has adopted. Survey was conducted through
questionnaires which is designed by taking into account a pre tested
questionnaire after making modifications to make the questionnaire suitable
for the present study. The questionnaire covered various aspects related to
various factors that influence the selection of health insurance company, i.e.,
age, gender, income, marital status, educational qualification and occupation,
types of health insurance and cover HI. Individual factors or personal factors
influencing health insurance selection are tax benefits, financial security and
high medical expenses.
 Samples considered are those who have purchased health insurance, either
public health insurance or private health insurance.
Study area
 The survey has conducted in Bhubaneswar, state of Odisha involving both
existing and potential buyer of health insurance.
 RESEARCH METHODOLOGY
Continued….
Sampling size and Design
For the purpose of primary data collection 30+ consumers were interviewed
and other potential buyers may be taken into account. in future analysis.
Questionnaires were issued to 30+ consumers . A well structured questionnaire
was framed with twenty four items.

Tools of analysis

•Data analysis is done using MS-Excel, and IBM SPSS version 20. The statistical
tools used were descriptive statistics, regression analysis, Tables, Factor analysis
and Multiresponce.

• For this purpose, five-point scale has been adopted with 1 being “ Strongly
Dislike” and 5 being “ “Strongly Like” and 1 being “ Strongly Dissatisfied and 5
being “ Strongly Satisfied”.
Data Analysis & Findings
 Data are collected from 30 respondents.
 Majority of the respondents are from Urban
areas(96%).
 Around 62% were Male respondents and 38%
are Female.
 Majority of the respondents are married.
 Distributive age of respondents with Minimum
age 25 years and maximum of 59Years and
Mean Age of 42 years.
 Majority of the Insurer are having income
more than 40K.
 Percentage Distribution of Highest
Qualification
56.9

19.6

11.8

3.9 3.9

10th pass Intermediate Graduate PG Professional

 Percentage Distribution of Occupation

Others

Govt./Public Sector

Pvt Job

Professional

Self Employed

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Govt./Public
Self Employed Professional Pvt Job Others
Sector
Series1 13.6 2.3 47.7 22.7 13.6
Awareness
Awareness of Different Insurance Companies
Responses Percent of
N Percent Cases
LIC 30 46.8% 94.9%
GIC 7 8.9% 17.9%
ICICI Pruf Life 9 11.4% 23.1%
Bajaj Alliance 8 10.1% 20.5%

UIIC 8 10.1% 20.5%

NIC 2 2.5% 5.1%
New India 3 3.8% 7.7%
Star Health 5 6.3% 12.8%

72 100.0% 202.6%
Type of Insurance Products
Type of Insurance Products
Responses Percent of
N Percent Cases
Life Cover 19 22.1% 50.0%
ULIP 6 7.0% 15.8%
Endowment 9 10.5% 23.7%
Personal Accident 17 19.8% 44.7%
Motor Vehicle Insurance 17 19.8% 44.7%
Household Insurance 8 9.3% 21.1%
Others 5 5.8% 13.2%
Not Available 5 5.8% 13.2%
86 100.0% 226.3%
 Knowledge regarding Insurance Products
Any other source

Print Media

Electronic Media

Neighbour

Friends

Family Members

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Family Electronic Print Any other
Friends Neighbour
Members Media Media source
Series1 47.5% 47.5% 17.5% 30.0% 35.0% 45.0%

• Average 20 thousand is spent on Health insurance premium per Annum

• Many respondent have More than 50 Thousand investment on Life insurance
products
 Percentage use of Health Insurance
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
High Medical
Tax Benefits Security Compulsory
Expences
Series1 33.3% 87.2% 66.7% 43.6%
 Name of Insurance Products purchased
Responses Percent of
N Percent Cases
Individual Insurance 32 47.8% 94.1%
Family Floater Insurance 12 17.9% 35.3%
Group Insurance 15 22.4% 44.1%
Employer Insurance 8 11.9% 23.5%
Reason for Choosing this product
Responses Percent of
N Percent Cases
Easy Claims Settlement 27 20.1% 71.1%
Broader Coverage 14 10.4% 36.8%
Network Hospital 36 26.9% 94.7%
Brand name 22 16.4% 57.9%
Lower Premium 14 10.4% 36.8%
Employer Option 11 8.2% 28.9%
Trust 10 7.5% 26.3%
 Almost all insurer have never have any
experience of Claiming the policy.
 Almost all respondent deposit their
premium on time and every time.
 Only 3% on policy holder have partially
utilized their policy.
 Almost 40% policy holder have shown
interest in purchasing same product from
same company in future.
 Almost 45% of policy holder agree to
recommend their policy to other family
members and friends.
 Satisfaction level with existing policy

Very Satisfied

Satisfied

Average

Dissatisfied

Very Dissatisfied

0.0 10.0 20.0 30.0 40.0 50.0

Very
Dissatisfied Average Satisfied Very Satisfied
Dissatisfied
Series1 8.3 19.4 5.6 27.8 38.9
Suggestion
 More awareness on different product and
services is not reaching to the policy holder
for better utilization of policies.
 Claim and Settlement process should be
simpler and better.
 Renewal process of health insurance
policies should be easier and quick.
 Wide coverage are not ensured.
Conclusion
The study aimed to identify the factors influencing the choice of selection of
health insurance policy. Data was collected through a structured
questionnaire given to 30+ customers. Data analysis was done through
regression analysis and other Statistical tools with the help of the 30+
responses received. The study considered the dependent factor as health
insurance institutional choice and the independent factors are age, gender,
income, marital status, educational qualification and occupation. The study
found that a majority of health insurance policyholders were male and
married; between 25-50 years of age, were employees of private
enterprises, having income levels more than 40K the premiums paid were
between 10,000 and 300,000, preferred to be individual insurance.
The results showed that age, gender, income, marital status, and cover health
insurance have a positive impact on the choice of selection of health
insurance product and on the other hand, sum assured, premium,
occupation, health insurance cover, and its type have no relationship for the
selection of health insurance buying pattern.
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