ISSN No - RBS

An Empirical Study on Indian HealthInsurance IndustryRisk and uncertainties are a part of everybody’s life. It is a condition in which there is a possibility of anadverse outcome rather than the desired one. for. There exist several techniques for meeting the problem ofrisk, of which insurance is the most practical method for handling major risk. Insurance is based on theprinciples of risk pooling. The principle of insurance works on the concepts of large number of peopleexposed to a similar risk, who make a contribution to a common fund and those who suffer losses due tothe occurrence of any uncertainties or risk are compensated from this fund. It is the transfer of financialresponsibility for the risk at the point of occurrence and conventionally involves the insurer in acommitment to pay, provided the terms and conditions of the policy are met, payment of the premiumsecures a source of funds in the event of loss. Liberalization of insurance business in India has made a seachange in the insurance industry. The market is opened for the private players and the vast potential inthe health business is explored steadily. The private insurance industry, has woken up to ground realitiesand is in the process of implementing many alternatives like agent, adjustors, asset manager, assurors,actuaries, accountants and administrators. Realizing the unlimited potential in Indian groups, privateinsurance companies concentrate in strategic deployment of technology for integrating office operations,and gaining customer confidence through improved service, which is the need of the hour. With thesecircumstances, the researchers felt necessary to know the respondent awareness of these private companiesand their opinion / perception towards the existing private companies. The study area was confined toErode City and the primary data was collected from 100 customers by using a structured questionnaire.The results of the survey indicate that in spite of being aware of various private companies the reasonbehind taking health insurance policy was family protection and tax saving.Keywords: Liberalization, private players, insurance industry and health business.K. Balanaga Gurunathan*M. Mohanasundari**INTRODUCTIONRisk is described, as any situationwhere there is uncertainty about theoutcome. Most of the people prefer toavoid risks like illness, accident,damage of property etc. by takinginsurance policies. Insurance is basedon the principle of risk pooling. Awell-regulated insurance industrywhich moves with the times byoffering its customers tailor-madeDecember 2010 Vol. 7, Issue 2products to satisfy their health needsis, therefore, essential to progresstowards a worry-free future. Whilethe public sector insurance companiesmade enormous contribution in thespread of awareness about insurance,and expanded the market, it wasrecognized that their reach was stilllimited, the range of products offeredrestricted and the service to theconsumer inadequate. It was alsorecognized that India has a vast*Professor, K.S. Rangaswamy College of Technology, Tiruchengode, Tamil Nadu, India**Lecturer, Kongu Engineering College, Perundurai, Tamil Nadu, IndiaLiberalization ofinsurance business inIndia has made a seachange in theinsurance industry.The market is openedfor the private playersand the vast potentialin the health businessis explored steadily.[ 75 ]