Data was collected through a structured questionnaire administered to 200 respondents from both urban and rural areas of Panipat. The findings indicate that although awareness of health insurance has improved in recent years, a significant portion of the population still lacks a clear understanding of policy terms, coverage, and benefits. Private insurance companies scored higher in customer satisfaction, whereas government-sponsored schemes were more prevalent among economically weaker sections.

Socio-demographic variables such as income, education, and occupation significantly influence consumer behaviour. Many respondents reported purchasing health insurance policies due to peer influence or pressure from agents rather than through informed decision-making. The study also highlights a considerable gap between policyholders’ expectations and actual service delivery, particularly in areas like claim settlement and transparency.

The research concludes with key recommendations: enhancing awareness through educational campaigns, streamlining claim processing procedures, and promoting digital platforms to improve accessibility and user convenience.