The document is a summer internship project report submitted by Suraj Kumar for their MBA degree. It includes an introduction to insurance, company profile of CARE Health Insurance, and details of the CARE Health Family Optima Plan product. The report contains sections on SWOT analysis, objectives, policy documents, and conclusions from the internship project analyzing the health insurance product.

1. 1
SUMMER INTERNSHIP PROJECT
SUBMITTED FOR THE PARTIAL FULFILMENT
FOR
AWARD OF THE DEGREE OF
MBA
UNDER THE SCHOOL OF MANAGEMENTOF
RENAISSANCE UNIVERSITY, INDORE
Renaissance University, Gram Reoti,
Sanwer Road,
Indore – 452015
SURAJ KUMAR

2. 2
DECLARATION
This is to certify that Summer Internship Report entitled
"…………………………………………………"which is submitted by me in
partial fulfilment of the requirement for the award of degree MBA, at
Renaissance University, Indore, comprises only my original work and due
acknowledgement has been made in the text to all other material used.
Date:
Signature: R.P. Singh
Name of Student: SURAJ KUMAR

3. 3
2

4. 4
ACKNOWLEDGEMENT
I am using this opportunity to express my gratitude to everyone who
supported me throughout the course of this MBA project. I am thankful for
their aspiring guidance, invaluably constructive criticism and friendly
advice during the project work. I am sincerely grateful to them for sharing
their truthful and illuminating views on a number of issues related to the
project.
I express my warm thanks to ………………………… and &
………………………… for their support and guidance at
‘….............................. ’
I thank our institute for providing us such an insightful opportunity and all
faculty members of RENAISSANCE UNIVERSITY, who provided me with
the facilities being required and conductive conditions for my MBA project.
SANDEEP SINGH
Regards,
SURAJ KUMAR
SIGNATURE.....................................

5. 5
PREFACE
Summer training is a part of our studies. All students have to go for
summer training in an industrial or commercial organization. Their main
objective is to arrange an exposure to actual functioning of the real
atmosphere the organization. are There so many aspects which are
more complex surrounding in practical and their treatment is possible
only through bookish knowledge. I did my summer training in CARE
HEALTHINSUARNCE Practical work experience is the integral part of
individual learning. An individual who is learning managerial concepts
has to undergo this practical experience for being a future executive.
CARE HEALTH INSURANCE is the market leader in health insurance
company offer project on CARE Health Family Optima Plan to
understandthe management work through data provided by them. The
training report is the presentation of our observation at insurance sector

6. 6
CONTENTS
Topic
1. Introduction to insurance
2. Company profile
3. About the product
4. SWOT analysis
5. Introduction to subject
6. Objective of study
7. Policy documents
8. Conclusions

7. 7
INTRODUCTION OF INSURANCE
What is Insurance: -
Insurance is a mechanism that ensures an individual to thrive on
adverse consequences by compensating the individual, his/her loss
financially. Every individual in the world and all activities connected with
him/her, be it life, profession, business, travel or any other pursuits are
subject to unforeseen and uncalled for hazards or dangers. The benefit
that an individual enjoys in his life by owning a car or a house or a
factory can be snatched by sudden accident which can render even the
individual immobile, and his family vulnerable. At this critical juncture,
only insurance helps him not only to survive but recover his loss and
continue his life in a normal manner, which would otherwise be
unthinkable.
The concept of insurance is quite simple. People, who are in similar
trade and are exposed to the same risks, congregate and some to an
agreement that if any individual member suffers a loss, then the loss will
be shared by others and minimized in order to enable the individual
member recover from the loss and cover his ground. Similarly, the
different kinds of risks can be identified and separate groups can be
formed to counter such risks and reduce the impact to a manageable
proportion, in which the share could be collected from the members
either after the loss or in advance, at the time of admission to the group.
This is an exemplary sign of humanity and insurance therefore serves
the mankind to a great extent; a point most of the individuals tend to
overlook, since monetary aspect is involved. Now such is for tangible
assets.

8. 8
The different types of human activities that come under the
umbrella of insurance are as follows:-
 House/Office/factory or any moveable - Fire Insurance Assets
destroyed in life.
 Shipment or transportation of goods - Marine Insurance by ship,
destroyed in catastrophe.
 Jewellery/Cash/Household goods - Burglar Insurance Stolen or
robbed.
 Goods in transit by roads or railways - Carrier Insurance
Destroyed.
 Theft or accident of vehicles - Vehicle Insurance
 Financial cover in ailment/surgery etc. – Health Insurance
 All these are non-life insurance. In conclusion one can safely say
that the purpose of insurance be it life or non-life is to transfer the
financial loss to the insurance company who spreads in over to the
policyholders.

9. 9
Characteristics of Insurance: -
 It is a contract for compensating losses
 Premium is charged for Insurance Contract.
 The payment of Insured as per terms of agreement in the
event of loss.
 It is a contract of good faith.
 It is a contract for mutual benefit.
 It is a future contract for compensating losses.
 It is an instrument of distributing the loss of few among
many.
 The occurrence of the loss must be accidental.
 Insurance must be consistent with public policy.

10. 10
LIFE INSURANCE: -
Life insurance may be defined as a contract in which the insurer, in
consideration of a certain premium, either in a lump sum or by other
periodical payments, agrees to pay to the assured, or to the person for
12 whosen benefit the policy is taken, the assured sum of money, on the
happening of a specified event contingent on the human life. A contract
of life insurance, as in other forms of insurance, requires that the
assured must have at the time of the contract an insurable interest in his
life Upon which the insurance is affected. In a contract of life insurance,
unlike other Insurance, interest has only to be proved at the date of the
contract, and not Necessarily present at the time when the policy falls
due.
A person can assure in his own life and every part of it, and can insure
for any sum whatsoever, as he likes. Similarly, a wife has an insurable
interest in her husband and vice-versa. However, mere natural love and
affection is not sufficient to constitute an insurable interest. It must be
shown that the person Affectioning an assurance on the life of another is
so related to that other person as to have a claim for support. For
example, a sister has an insurable interest in the life of a brother who
supports her.
A person not related to the other can have insurable interest on that
other person. For example creditor has insurable interest in the life of his
debtor to the extent of the debt. A creditor can insure the life of his
debtor up to the amount of the debt, at the time of issue of the policy. An
employee has an insurable interest in the life of the employer arising out
of contractual obligation to employ him for a Stipulated period at fixed
salary. Similarly, from an employer to the employee who is bound by the
contract to serve for a certain period of time.
9

11. 11
Classification from business point of view: -
From business point insurance can be classified into two broad
categories: -
1. Life insurance
2. General Insurance
GENERAL INSURANCE: -
General insurance business refers to fire, marine , and miscellaneous
insurance business whether carried on singly or in combination with one
or more of them but does not include capital redemption business and
annuity certain business.
Classification from risk point of view:
From risk point of view, insurance can be classified into four categories:
1. Personal insurance
2. Property insurance
3. Liability insurance
4. Fidelity guarantee insurance
FIDELITY GUARANTEE INSURANCE:
In this type of the insurer undertakes to indemnify the assured
(employer) in consideration premium, for losses arising out of fraud,or
embezzlement.

12. 12
Insurance Sector Reform:
In 1993, Malhotra Committee headed by former Finance Secretary and
RBI Governor R. N. Malhotra was formed to evaluate the Indian
insurance industry and recommend its future direction.
The Malhotra committee was set up with the objective of completing the
reforms initiated in the financial sector.
The reforms were aimed at “creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in
mind the structural changes currently underway and recognizing that
insurance is an important part of the overall financial system where it
was necessary to address the need for the similar reforms….”
n 1994, the committee submitted the report and some of the key
recommendations Included:

13. 13
Structure:
 Government stake in the insurance Companies to be brought
down to 50%
 Government should take over the holdings of GIC and its
subsidiaries so that these subsidiaries can act as independent
corporations.
 All these insurance companies should be given greater freedom to
operate.
Competition:
Private Companies with a minimum paid up capital of Rs. 1bn should
be allowed to enter the industry.
 No company should deal in both Life and General Insurance
through a single entity.
 Foreign companies should be allowed to enter the industry with
the collaboration with the domestic companies.
 Postal Life Insurance should be allowed to operate in the rural
market.

14. 14
Regulatory Body:
 The Insurance Act should be changed
 An Insurance Regulatory body should be set up.
 Controller of Insurance (Currently a part from the Finance
Ministry) should be made independent.
Customer Service:
 LIC should pay interest on delays in payments beyond 30 days.
 Insurance companies must be encouraged to set up unit linked
pension plans.
 Computerization of operations and updating of technology to be
carried out in the insurance industry.
The committee emphasized that in order to improve the customer
services and increase the coverage of the insurance industry should be
opened up to competition. But at the same time, the committee felt the
need to exercise caution as any failure on the part of new players could
ruin the public confidence in the industry.

15. 15
The Insurance Regulatory and Development Authority:
Reforms in the Insurance sector were initiated with the passage of the
IRDA Bill in Parliament in December 1999. The IRDA since its
incorporation as a statutory body in April 2000 has fastidiously stuck to
its schedule of framing regulations and registering the private sector
insurance companies.
The other decisions taken simultaneously to provide the supporting
systems to the insurance sector and in particular the life insurance
companies were the launch of the IRDA’s online service for issue and
renewal of licenses to agents. The approval of institutions for imparting
training to agents has also ensured that the insurance companies would
have a trained workforce of insurance agents in place to sell their
products, which are expected to be introduced by early next year. Since
being set up as an independent statutory body the IRDA has put in a
framework of globally compatible regulations. In the private sector 12 life
Insurance and 6 general insurance companies have been registered.

16. 16
Restructuring of GIC:
The GIC was converted into a national re-insurer and its four
subsidiaries were restructured as independent companies. In December,
2000 the Parliament passed a bill de-linking the four subsidiaries from
GIC in July, 2002. These are
 National insurance co. Ltd
 The oriental insurance co. Ltd
 The new India assurance co. Ltd
 United India Insurance Co. Ltd.
Life insurance industry today:
There are 24 insurance companies registered as “Life Insurance”
companies. The list is given below.
Non-Life insurance industry today:
There are 28 insurance companies registered as “General Insurance”
companies.
There are 5 standalone Health Insurance companies.
Rest of the companies handle all types of general insurance business.

17. 17
List of life insurance companies:
1. AegonReligare Life Insurance 13. IDBI Federal Life Insurance
2. Aviva Life Insurance 14. India First Life Insurance
3. Bajaj Allianz Life Insurance 15. Kotak Mahindra Old Mutual Life
4. Bharti AXA Life Insurance Insurance 16. Life Insurance Corporation
5. Birla Sun Life Insurance 17. Max Life Insurance
6. Canara HSBC OBC Life Insurance 18. PNB MetLife
7. DHFL Pramerica Life Insurance 19. Reliance Life Insurance
8. Edelweiss Life Insurance 20. Sahara India Life Insurance
9. Exide Life Insurance 21. SBI Life Insurance
10. Future Generali Life Insurance 22. Sriram Life Insurance
11. HDFC Standard Life Insurance 23. CARE Union Dai-Ichi
LifeInsurance
12. ICICI Prudential Life Insurance 24. Tata AIA Life Insurance
What is Healthcare:
You have heard of the saying “Health is Wealth”. The word ‘Health’ was
derived from the word ‘hoelth’, which means ‘soundness of the body’.
Over a period of time, modern medicine has evolved into a complex
science and the goal of modern medicine is no longer mere treatment of
sickness but includes prevention of disease and promotion of quality of
life. A widely accepted definition of health is the one given by World
Health Organization in 1948.

18. 18
Definition:
World Health Organization (WHO): Health is a state of complete
physical, mental and social wellbeing and not merely the absence of
disease.
Lifestyle factors:
Lifestyle factors are those which are mostly in the control of the
individual concerned e.g. exercising and eating within limits, avoiding
worry and the like leading to good health; and bad lifestyles and habits
such as smoking, drug abuse, unprotected sex and sedentary life style
(with no exercise) etc. leading to diseases.
Environmental factors:
Safe drinking water, sanitation and nutrition are crucial to health, lack of
which leads to serious health issues as seen all over the world,
especially in developing countries.e.g. People working in certain
manufacturing industries are prone to diseases related to occupational
hazards such as Asbestos in workers in asbestos manufacture and also
diseases of the lungs in coal miners.

19. 19
Genetic factors:
Diseases may be passed on from parents to children through genes.
Such genetic factors result in differing health trends amongst the
population spread across the globe based on race, geographical location
and even communities.
Factors affecting the health systems in India:
The Indian health system has had and continues to face many problems
and challenges. These, in turn, affect the nature and extent of the
healthcare system and the requirement at the individual level and
healthcare organization at the structural level. These are discussed
below:
Evolution of Health Insurance in India:
While the government had been busy with its policy decisions on
healthcare, it also put in place health insurance schemes. Insurance
companies came with their health insurance policies only later. Here is
how health insurance developed in India:

20. 20
Employees’ State Insurance Scheme:
Health Insurance in India formally began with the beginning of the
Employees’ State Insurance Scheme, introduced vide the ESI Act, 1948,
shortly after the country’s independence in 1947. This scheme was
introduced for blue-collar workers employed in the formal private sector
and provides comprehensive health services through a network of its
own dispensaries and hospitals.
All workers earning wages up to Rs. 15,000 are covered under the
contributory scheme wherein employee and employer contribute 1.75%
and 4.75% of pay roll respectively; state governments contribute 12.5%
of the medical expenses.
The benefits covered include:
Free comprehensive healthcare at ESIS facilities.
Maternity benefit
Disability benefit
Cash compensation for loss of wages due to sickness and survivorship
and Funeral expenses in case of death of worker.

21. 21
Central Government Health Scheme:
The ESIS was soon followed by the Central Government Health Scheme
(CGHS), which was introduced in 1954 for the central government
employees including pensioners and their family members working in
civilian jobs. It aims to provide.
Comprehensive medical care to employees and their families and is
partly funded by the employees and largely by the employer (central
government).
The contribution from employees is quite nominal though progressively
linked to salary scale – Rs.15 per month to Rs.150 per month. 2010,
CGHS had a membership base of over 800,000 families representing
over 3 million beneficiaries.
20

22. 22
PRODUCTS
Health insurance:
 Individual health plan
 Family health plan
 Senior citizen plan
FEATURES:
 India’s First Stand-Alone Health Insurance Company
 Pan India Presence With More Than 290 Branch Offices
 Cashless Hospitalization And Reimbursement Facility In With More
Than 7000 Hospitals Across India
 24*7 hours call centre facility.
 Hassle-Free And Customer-Friendly Direct Claim Settlement
Without Intervention Of TPA
 Health Insurance Company Of The Year 2015 - Indian Insurance
Awards 2015
 Personalized Doctor Visit For All Customers Getting Hospitalized
SWOT ANALYSIS:
STRENGTHS:
CARE health commences it business in 2006 as very much early as
earlieras compared to 4 other health companies.
21

23. 23
Business Growth:
They growth is very much higher as compared to other co.
Emerging Middle-Income Group:
India’s middle-income group is rapidly increasing and would be
emerging as a profitable market.
HEALTH INSURANCE PLAN:

24. 24
Family Health Optima Insurance Plan:
Features:
 Over 400 Day Care procedures
 Expenses incurred towards cost of Health Check up after 3 years
worth Rs-5,000/-
 Coverage for New born Baby after 16 days.
 Coverage for Domiciliary hospitalization treatments.
 Get auto recharge at no extra cost,upto 30% of sum insured.
 Donor expenses for organ transplantation.

25. 25
A policy to cover the entire family:
Senior Citizens Red Carpet Health Insurance Policy:
Parents have spent their life trying to make our life secure. It’s time you
do the same for them in their old age. Senior Citizen Red Carpet Policy
will help parents live worry free and experience absolute security.

26. 26
Features:
 For Senior citizens aged between 60 to 75 years.
 No pre-insurance medical test required. Covers pre-existing
diseases from the second year onwards.
 Medical Consultations as an Out Patient in a Network Hospital
Higher Sum Insured coverage upto Rs.10Lakhs.
 Guaranteed lifetime renewals.
Co-Payment:
50% of each and every claim relating to pre-existing diseases and 30%
of each and every claim for all other claims.
Pre-Existing Diseases/Illness:
Covered after 12 months of continuous coverage.
Pre-Acceptance medical screening:
There is no pre-acceptance medical screening.
Tax Benefits:
Amount paid by any mode other than by cash for this insurance is
eligible for relief under Section 80D of the Income Tax Act.
Freelook Period:
A free look period of 15 days from the date of receipt of the policy is
available for reviewing the policy terms and conditions.

27. 27
CARE health Accidental Care Insurance:
Features:
 Cover for Accident death, Permanent Disability and temporary
Disablement. Compensation for Permanent Total Disablement is
150% of the sum insured. Enhanced weekly compensation up to
Rs.15000/- per week (maximum 100 weeks).
 Educational Grant for dependent children.
 Cumulative bonus 5% per annum maximum 50%
Benefits:
Additional free benefits
Medical Expenses Extension
Coverage for Winter Sports
Policy Benefits:
 Table A – covers Accidental Death
 Table B – covers Accidental Death and Permanent Disablement
 Table C – covers Accidental Death, Permanent Disablement and
Temporary Total Disablement (Weekly Compensation)

28. 28
Additional Free Benefits:
 Educational Grant: Maximum of Rs.10,000/- per child upto 2
children in case of Death/Permanent Total Disability of the insured
person.
 Ambulance Charges / Transportation Expenses of Mortal
Remains: The limit of Company’s liability is Rs.5,000/- only during
the policy period.
 Travel Expenses for One Relative (Applicable for Death claims only): 1%
of.
 Total Sum Insured upto Rs.50,000/- subject to actual for the
transport expenses to one relative of the insured person.
 Purchase of Blood: Upto 5% of the Total sum insured subject to a
maximum of Rs.10,000/- towards the expenses incurred in
purchasing blood through a Hospital or Government approved
blood bank.
 Transportation of Imported Medicines: Upto 5% of Total sum
insured subject to a maximum of Rs.20,000/- towards the
expenses incurred on freight charges for importing medicines.
 The above mentioned amounts are payable in addition to the sum
insured.

29. 29
Eligibility:
 Any person between 18 and 70 years of age at the time of entry
can take this insurance. Lifelong renewal.
 Dependent children covered from 5 months
 Policy benefits are applicable individually for each person covered
under family.
INTRODUCTION TO TOPIC:
CARE Health Family Optima plan:
CARE health insurance given you an option to choose your family health
plan. Premium and policy according to your budget and requirements.
OBJECTIVE OF THE STUDY:
To know about market share of CARE health in Indian health insurance
sector? To understand about the company policy.
CARE FAMILY HEALTH OPTIMA INSURANCE PLAN:
Features:
 Over 400 Day Care procedures
 Expenses incurred towards cost of Health Check up after 3 years
worth Rs5,000/
 Coverage for New born Baby after 16 days
 Coverage for Domiciliary hospitalization treatments
 Get auto recharge at no extra cost, up to 30% of sum insured.
 Donor expenses for organ transplantation

30. 30
Bonus:
Bonus in respect of a claim-free year of insurance is allowable upto the
limits specified. The bonus so granted will be reduced in the same order
in which it was given following a claim. However the Basic sum insured
shall not be reduced.
Policy Benefits:
 Hospitalization Cover Protects the insured for in - patient
hospitalization expenses for a minimum of 24 hrs. These expenses
include room rent, nursing and boarding charges.
 Surgeon, Anesthetist, Medical Practitioner, Consultants, Specialist
Fees, Anesthesia, Blood, Oxygen, and Operation Theatre charges,
Cost of Pacemaker, Cost of Medicine and drugs etc.
 Ambulance charges for emergency transportation upto a sum of
Rs.750/- per hospitalization and overall limit of Rs.1500/- per policy
period.
 Pre-Hospitalization expenses up to 60 days prior to admission in
the hospital. Post Hospitalization expenses upto 90 days after
discharge from the hospital.

31. 31
Eligibility:
 Any person aged between 18 years and 65 years
 Beyond 65 years. It can be renewed for life time.
 Lifelong renewal. This policy is on floater basis.
 Family: Proposer, spouse, dependent children from 16 days up to
25 years
 Child from 16th day of age can be covered as part of family
Co-Payment:
A co-payment of 20% of each and every claim applicable for fresh as
well as renewal policies for insured persons whose age at the time of
entry is above 60 years.
Pre-Existing Diseases/Illness:
Coverage available after 48 months of continuous insurance without
break with any Indian insurance company
Pre-Acceptance medical screening:
Persons above 50 years will be required to undergo pre-acceptance
medical screening at the Company nominated centers, cost of which is
currently borne by the company.

32. 32
Tax Benefits:
Amount paid by any mode other than by cash for this insurance is
eligible for relief under Section 80D of the Income Tax Act.
Free Look Period:
A free look period of 15 days from the date of receipt of the policy is
available for reviewing the policy terms and conditions. In case insured
is not satisfied he can seek cancellation of the policy and in such event
the Company will allow refund of premium after adjusting the cost of pre-
acceptance of medical screening , stamp duty charges and
proportionate risk premium for the period concerned provided no claim
has been made until such cancellation.
ADVANTAGE:
No Third Party Administrator, direct in-house claim settlement. Faster
claim settlement. Network of more than 7000 hospitals across India.
Facility for maintaining personal health records in electronic format.
DOCUMENTATION REQUIRED FOR POLICY:
 One id proof of head of family
 DOB of all members covered
 One photo of all members covered
 Height and weight of all members being covered under policy

33. 33
PREMIUM CALCULATION:
Premium is calculated by agent on the basis of premium chart
depending upon on the age of person of elder member of family & no of
person assured.
CONCLUSION:
 There are 5health insurance companies in India and the market
share of the CARE HEALTH INSUARANCE is 1.89% in
insurancesector & growth rate is 33.6% in July 2016 as
compared to July 2015.
 The policy of the company is designed according to the budget
and requirements of the customer.
THANK YOU…👍
32