International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264)
Vol. 2, No. 2, August 2014
Health Insurance: An Empirical Study of
Consumer Behaviour in Rohtak District of
Haryana
Suman Goel
Research Scholar, Institute of Management Studies and Research (IMSAR) Maharshi Dayanand University,
Rohtak (124001), Haryana, India
sumangoel7@gmail.com
Abstract Health insurance is rapid rising as an important
mechanism to funding health care needs of the people. The
present study is an effort in the area of health insurance.
Firstly, it examines the respondents who are aware or not
aware about health insurance as well as various sources of
awareness; secondly, to study the type of health insurance
preferred by the respondents and to identify the perceived
aim of taking health insurance. Thirdly to survey the
barriers in the subscription of health Insurance and last, are
they willing to take a health insurance policy and pay for it?
The study has conducted in Rohtak district of Haryana and
based on primary data collected from a sample size of 150
respondents via questionnaire method. About 80% i.e. 120 of
them were found to be suitable for analysis. The results have
been analyzed with the help of various statistical tools. The
results have shown low level of awareness and willingness to
join in subscription of health insurance.
Keywords Awareness, purpose, Benefits, Health Insurance
I. INTRODUCTION
Health is a human right. Its accessibility and
affordability has to be ensured. The escalating cost of
medical treatment is beyond the reach of common man.
Health insurance found the new track of success and
growth in the year 1999, when reforms in the Indian
insurance sector was initiated with lying and passing of
IRDA Bill in Parliament. The Insurance Regulatory and
Development Authority (IRDA), since its incorporation in
April, 2000 have fastidiously stuck to its schedule of
framing regulations and opening up the insurance sector
for the development of insurance market. Health and
socio-economic developments are strongly interlinked that
is not possible to get one without the other. While the
economic development in India has been gaining
momentum over the last decade, our health system is at
crossroads today (VHAI, 2013).
Government initiatives in public health have recorded
some noteworthy successes over time (eradication of
smallpox, polio and guinea worm; substantial decline in
the number of Leprosy, and Malaria cases, etc) (NHP,
2002). Our achievements in health outcomes are only
moderate by International standards because the Indian
health system is ranked 118 among 191 WHO member
countries on overall health performance (WHO, 2000).
The need for health insurance system that works on the
basic principle of pooling of risks of unexpected costs of
2321-3264/Copyright2014, IJRMST, August 2014 69
Available at www.ijrmst.org
persons falling ill and needing hospitalization by charging
premium from a wider population base of the same
community. To a large extent the health indices of a
country is determined with reference to the ways with
which its health care gets financed. Although, in India the
total health care expenditure is increasing steadily, but the
mix of public and private spending is a major area of
concern (Bhat and Jain, 2006). As the various studies
reveal that in India more than 80 percent of health cares
expenditure is borne by individuals i.e. health care
financing is mainly in the form of out-of-pocket which
gradually pushing them in to a violent circle of poverty. In
such a situation health insurance is a widely recognized
and preferable mechanism to finance the health care
expenditure of the individuals.
The credit for the origination of concept of health
insurance goes to Hugh the Elder Chamberlen from the
Peter Chamberlen family, who proposed it for the first
time in the year 1694. An investment in health insurance
scheme would be a sensible decision. The health insurance
scheme could either be a personal scheme or a group
scheme sponsored by an employer. Some of the existing
health insurance schemes currently available are
individual, family, group insurance schemes, and senior
citizens insurance schemes, long-term health care and
insurance cover for specific diseases.
But there is terrible need of health insurance in India as
the World Bank Report reveals that 85% of the working
populations in India do not have Rs. 5, 00,000 as instant
cash; 14% have Rs. 5, 00,000 instantly but will
subsequently will face a financial crunch; Only 1% can
afford to spend Rs. 5, 00,000 instantly and easily; and
99% of Indians will face financial crunch in case of any
critical illness. Hence the need for health insurance in
India cannot be overlooked (source:
www.healthinsuranceindia.org). In the present scenario
the annual expenditure on health in India amounts to about
$7.00 in rural areas and $10.00 in urban areas per person,
majority of care being provided by the private sector.
With improved literacy, modest rise in incomes, and rapid
spread of print and electronic media, there is greater
awareness and increasing demand for better health
services. During the last 50 years India has developed a
large government health infrastructure with more than 150
medical colleges, 450 district hospitals, 3000 Community
Health Centers, 20,000 Primary Health Care centers and
 International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264)
Vol. 2, No. 2, August 2014
Available at www.ijrmst.org

130,000 Sub-Health Centers. On top of this there are large 2) To examine the type of health insurance
number of private and NGO health facilities and preferred by the respondents.
practitioners scatters though out the country (Kasirajan 3) To identify the purpose of taking health
2012). This study aims at evaluating the awareness of insurance.
health insurance in Rohtak district of Haryana. 4) To survey the barriers in the subscription of
health Insurance.
II. REVIEW OF LITERATURE 5) To determine the willingness to join and pay for
The Various studies related directly or indirectly with health insurance.
the objectives of the present study were reviewed.
Gumber and kulkarni (2000) undertaken a case study in IV. RESEARCH METHODOLOGY
Gujarat and provided that SEWA a type of health The study has been conducted in Rohtak district of
insurance scheme is strongly preferred by those who cant Haryana and mainly based on primary data collected from
afford and also not access the services of various other a sample size of 150 respondents via questionnaire
schemes. Sanyal (1996) examined that the burden of method. Convenience non- probability sampling method
health care expenditure in rural areas was twice in 1986- was followed. The data has been collected from the
87 as compared to 1963-64 and also provided that general public by means of well-structured questionnaire
household is the main contributor to the financing of and was classified and analyzed manually. For the purpose
health care in India, so the health planners would have to of study, questionnaires were sent to 150 people, but we
pay more consideration regarding this. Asgary, Willis, received response from 120 persons that was found to be
Taghvari and Refeian (2004) estimated the demand and suitable for the purpose of analysis. The data relates to the
willingness to pay for health insurance by rural month of Dec. 2013.-Feb. 2014. The analysis of data
households in Iran and concluded that a significant collected has been carried out by using simple
percentage of population (more than 38%) live in rural frequencies, percentages etc.
areas, but the health care insurance currently operating in
urban areas. (Bawa & Ruchita, 2011) examined that there V. ANALYSIS OF DATA
was low level of awareness and willingness to join and Table I show that a significant ratio of the sample was
there were seven key factors acting as a barrier in way of male members. Majority of the respondents belonged to
opting for health insurance. This present study very the age groups of below 30years and were married.
closely relates to what we are trying to achieve in our Maximum of them were post graduate followed by
research i.e. to ascertain the level of willingness and graduation and higher education and were self employed.
awareness among general population of Rohtak district of As far as level of income is concerned, a major proportion
Haryana. Ahuja and De (2004) confirmed that the of the respondents were having annual income between
demand for health insurance is limited where a supply of Rs150000-200000.
health services is weak. Ahuja and Narang (2005)
TABLE I
provided an overview of existing forms and emerging
trends in health insurance for low income segment in India PERSONAL PROFILE OF THE RESPONDENTS
and concluded that health insurance schemes have Gender Frequency Percentage
considerable scope of improvement for a country like Male 85 70.83
India by providing appropriate incentives and bringing Female 35 29.17
these under the regulatory ambit. Lofgren et al. (2008), total 120 100
this study conducted in Vietnam it was found that Age Frequency Percentage
willingness to pay for health care services was directly Less than 30 60 50
proportional to the level of income, education, size of 30-40 35 29.17
family and the number of lingering diseases in a 40-50 15 12.5
household. Dror (2007) examined why the one-size-fits- Above 50 10 8.33
all health insurance products are not suitable to low total 120 100
income people in India and provided that there is presence Marital Status Frequency Percentage
of considerable variability to pay for health insurance. Single 45 37.5
Sbarbaro (2000) observed that the groups of people who Married 75 62.5
are most likely to face health related issues are the lower Total 120 100
income level group. Education level Frequency Percentage
Middle level 4 3.33
III. OBJECTIVE OF THE STUDY Matric Level 6 5
Higher education 28 23.33
1) To assess the awareness level and sources of Graduation 34 28.33
awareness about health insurance. Post Graduation 36 30

2321-3264/Copyright2014, IJRMST, August 2014 70

 International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264)
Vol. 2, No. 2, August 2014
Available at www.ijrmst.org

Others 12 10 Table III shows that a significant proportion of

Total 120 100 population preferred government health insurance
Income per annum Frequency Percentage schemes (52.5%) over private schemes (37.5%).
Less than Rs 50000 15 12.5
TABLE III
Rs 50000-100000 11 9.17
TYPE OF HEALTH INSURANCE PREFERRED
Rs100000-150000 14 11.67
Rs150000-200000 45 37.5 Preference of Health Insurance Frequency %
Above Rs 200000 35 29.16 Private 45 37.5
Total 120 100 Govt. 63 52.5
Occupation Frequency Percentage Others 12 10
Self Employed 37 30.83 Total 120 100
Unemployed 6 5
Source: Primary Data
Housewife 19 15.83
Professional 29 24.17 Table IV depicts the purpose of health insurance as
Family owned business 24 20 professed by the respondents when they were queried on
Retired 5 4.17 their awareness and knowledge of health insurance. A
Total 120 100 good majority of the respondents (61.87%) was of the
Source: Primary Data opinion that the health insurance would cover their
medical expenses.
It is clear from the Table II that people were already
aware about health insurance yet a major proportion of the TABLE IV
respondents i.e. 69.17% are still without health insurance PERCEIVED PURPOSE OF TAKING HEALTH INSURANCE
and only 30.83 % were having health insurance.
Purpose Response % of
Furthermore there are number of sources creating s responses
awareness regarding health insurance. Mainly the source To protect against high and 112 61.87
of awareness is TV followed by agents, newspaper, unexpected medical cost
internet, friends etc. Although health insurance is not a Tax gains 53 29.29
new concept and people are also getting aware with it, yet Compulsion from employers 9 4.97
this awareness has not reached to the level of subscription Others 7 3.87
of health insurance products. Total 181 100
TABLE II Source: Primary Data
AWARENESS LEVEL AND SOURCES OF AWARENESS FOR
HEALTH INSURANCE Table V shows that there are number of factors which
act as barriers in the contribution of health insurance. All
Awareness Particulars Frequency Percentage
these barriers were taken in the form of variables and
about health Not Aware/ not 29 24.17
insurance exposed
respondents were asked to give their response on five
Aware/exposed 37 30.83 point like rt scale ranging from strongly agree to strongly
and subscribed disagree. Where 5 signifies strongly agree, 4 signifies
Aware/exposed agree, 3 Uncertain, 2 signifies disagree and 1 signifies
and unsubscribed 54 45 strongly disagree. The majorly consider being most
Total 120 100 affecting barrier in the subscription of health insurance is
Sources of Particulars Responses % of lack of reliability and comprehensive coverage(51.67%).
Awareness Responses
TABLE V
TV 97 27.40
Newspaper 43 12.15 BARRIERS IN THE SUBSCRIPTION OF HEALTH INSURANCE
Agents 49 13.84
Barriers SA A U D SD Total
Family/ Friends 37 10.45
5 4 3 2 1
internet 40 11.3
Lack of 44( 25(20 11(9 23(1 17(1 120
Employee of 23 6.5 Funds to 36. .83) .17) 9.17 4.17
insurance Meet Costly 67) ) )
company Affair
Tax consultants 32 9.04 Lack of 29( 31(25 15(1 25(2 20(1 120
& Doctors Awareness 24. .83) 2.5) 0.83 6.67
Any other 33 9.32 and 17) ) )
Total 354 100 Willingness
Source: Primary Data to Join
Lack of 45( 27(22 8(6. 25(2 15(1 120
Intermediari 37. .5) 67) 0.83 2.5)

2321-3264/Copyright2014, IJRMST, August 2014 71

 International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264)
Vol. 2, No. 2, August 2014
Available at www.ijrmst.org

es Outreach 5) ) their capital. To develop a viable health insurance scheme,

and it is important to understand people's perceptions and
Capabilities develop a package that is accessible, available, affordable
Lack of 37( 33(27 7(5. 32(2 11(9 120 and acceptable to all sections of the society. To conclude,
Availability 30. .5) 83) 6.67 .17) most of the respondents were of the opinion that
and 83) )
Accessibilit
government should come out with a clear cut policy,
y of where the public can be made to contribute compulsorily
Services to a health insurance scheme to ensure unnecessary out-
Lack of 62( 5(4.1 11(9 27(2 15(1 120 of-pocket expenditures and also better utilization of their
Reliability 51. 7) .17) 2.5) 2.5) health care facilities.
and 67)
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