Exploring Factors of Low Health Insurance Penetration Among Indian Muslims

Objectives: This study explores the demographic and socio-economic factors leading to low penetration of health insurance among Indian Muslims with special reference to Allahabad.

Methods/Statistical analysis: Stratified random sampling was used and responses were collected using Likert scale in questionnaire from urban, semi-urban and rural areas. Descriptive analysis, reliability analysis and exploratory factor analysis were done for all the attributes of the questionnaire. To assess whether the analyzed factors are related to the buying intentions of the prospective customers or not, we have calculated chi square. Pearson correlation coefficients have been calculated to analyze the degree of correlation.

Findings: Our study finds that young educated Muslims are willing to buy health insurance policy. Employment sector, income and status of employment are all important factors. The service class Muslims especially in government sector is interested to buy the health insurance. Location of residence/ work place is also important factor, as per our study urban people are more aware about health insurance as compare to semi-urban or rural people. As per our study, religious practices are also a deterrent in buying health insurance but increasing education in Muslims is reversing it. Because of low education and awareness, most of the Muslims don’t trust whether that they will get claim benefits or not. Insurers should run special awareness campaign among Muslim areas. Respondents expect claim process and policy conditions to be further simplified. Network of empanelled hospitals does not include Muslim locality hospitals which is again a deterrent.

Application/Improvements: To increase penetration, health insurance companies should increase awareness campaign, should further simplify claim process, empanel more local hospitals and appoint agents/ brokers among Muslims localities.