Customers’ Perception of Health Insurance Services in Rural and Urban Areas: An Empirical Study in Select Districts of Andhra Pradesh

Abstract

Health insurance plays an increasingly critical role in ensuring financial protection and access to healthcare in India, particularly given rising treatment costs and regional disparities in service availability.  This study investigates the perception of health insurance services among rural and urban customers across three districts: Visakhapatnam, Vizianagaram, and Srikakulam.  The research incorporates a survey of 450 respondents and applies descriptive statistics, chi-square tests, cross-tabulation, and graphical representation to understand awareness levels, cashless service utilization, claim settlement experiences, motivational factors, and trust in insurers. The findings indicate that urban customers demonstrate significantly higher awareness, better access to network hospitals, and more favourable experiences with cashless treatment.  In contrast, rural respondents’ express concerns related to travel distances, delays in claim settlements, and lack of clear information.  The study includes implications for insurers, policymakers, and public health administrators, offering recommendations to strengthen health insurance penetration and service quality in underserved regions.