Awareness and Perception towards Critical Illness Care Insurance

Abstract

Insurance can help you manage your risk. It is much better to take a critical illness insurance policy that provides valuable form of financial protection in the event of critical illness. Most of the people are not aware of critical illness insurance and the perception is found to be affected by behavioural biases. The study aims to understand the level of awareness regarding Critical Illness Care Insurance among individuals and the factors contributing to the perception towards Critical Illness Insurance. Further it also attempts to measure the level of overconfidence bias among individuals and assess the relationship between overconfidence bias and perception towards Critical Illness Care Insurance among individuals. The present study is descriptive in nature using both primary and secondary data. Primary data has been collected using Structured Questionnaires using Google Forms. Scale Items were adapted from Berthet et.al. (2021) and Roshani et.al. (2022). Analysis of the data was conducted using Jamovi. Percentages, Mean Scores, Correlation and Correspondence Analysis were used to analyse the data. Awareness regarding Life Insurance, Motor Insurance and General Health Insurance are higher when compared to Critical Illness Care Insurance and Property Insurance. Overall perception towards critical illness care insurance is found to be low. There exist a moderate level of Overconfidence Bias. A high level of bias is associated with a low level of perception towards critical illness care insurance. Serious policy attention is needed to overcome the biases and educate the public in creating awareness and favourable perception towards critical illness care insurance.