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Role of Perceptions in Health Insurance Buying Behaviour of Workers Employed in Informal Sector of India

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  • Pooja Kansra
  • Harinder Singh Gill

Abstract

Health insurance can be an effective tool of personal protection. But India’s health insurance market still lags behind the other countries in terms of penetration. The present article identified the role of perceptions in the enrolment of health insurance among the urban informal sector of Punjab, India. First, data were obtained from the urban informal sector of Punjab. Then factor analysis was applied to identify the perceptions associated with enrolment of health insurance. After this, logistic regression was performed to determine the associations of identified perceptions with enrolment of health insurance. The present study identified 12 perceptions factors associated with health insurance enrolment of the informal sector in India. Out of the 12 factors, the logistic regression results proved that 8 were statistically significant influencers of health insurance enrolment decisions. The significant perceptions factors were lack of awareness about the need to buy health insurance; comprehensive coverage; income constraint; future contingencies and social obligations; lack of information; availability of subsidized government health care; linkage with government hospitals; and preference for government schemes. It was found that perceptions play a vital role in the household decisions to enrol for health insurance. Policy makers or marketers of health insurance policies should recognize the household perceptions as a potential barrier and try to develop a health insurance package as per the actual needs of the informal sector (low income) in India.

Suggested Citation

  • Pooja Kansra & Harinder Singh Gill, 2017. "Role of Perceptions in Health Insurance Buying Behaviour of Workers Employed in Informal Sector of India," Global Business Review, International Management Institute, vol. 18(1), pages 250-266, February.
    • Handle: RePEc:sae:globus:v:18:y:2017:i:1:p:250-266
    DOI: 10.1177/0972150916666992
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    References listed on IDEAS

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    Cited by:

    1. Petro G. Nzowa & Felix A. Nandonde & Somo M. L. Seimu, 2023. "Mediation effect of trust on willingness to pay for health insurance among co-operative members in Tanzania," Future Business Journal, Springer, vol. 9(1), pages 1-15, December.
    2. Shruti Shuvam & Pratap C. Mohanty, 2023. "Necessity or Opportunity Driven: Gender Differentials and Structural Changes of Proprietorship in the Indian Unorganized Enterprises," Global Business Review, International Management Institute, vol. 24(2), pages 295-316, April.
    3. Sarwal, Rakesh & Kumar, Anurag, 2021. "Health Insurance for India's Missing Middle," OSF Preprints s2x8r, Center for Open Science.
    4. Dawe, Mohamed, 2020. "Transfiguration Of National Health Financing To Rural Communities," International Journal of Economics Development Research (IJEDR), Research and Intellectual Development Foundation, vol. 1(3), pages 200-212, December.

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