pproject final

Impact of service quality on customer loyalty

PROJECT REPORT

ON

Impact of Service Quality on Customer Loyalty in LIC

B. M. COLLEGE OF BUSINESS ADMINISTRATION


LIFE INSURANCE IN INDIA

Life insurance in India made its debut well over 100 years ago. In our country, which is one

of the most populated in the world, the prominence insurance is not as widely understood, as

it ought to be. What follows is an attempt to acquaint readers with some of the concepts of

life insurance, with special reference to LIC It should, however, be clearly understood that

the following content is by no means an exhaustive description of the terms and conditions of

an LIC policy or Its benefits or privileges. For more details, please contact our branch or

divisional office. Any LIC Agent will be glad to help you choose the life insurance plan to

meet your needs and render policy servicing.

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his

nominee) on the happening of the event insured against. The contract is valid for payment of

the insured amount during:

The date of maturity.

Specified dates at periodic intervals.

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to

the Corporation by the policyholder. Life insurance is universally acknowledged to be an

institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the

timely aid of the family in the unfortunate event of death of the breadwinner. By and large,

life insurance is civilization’s partial solution to the problems caused by death. Life

insurance, in short, is concerned with two hazards that stand across the life-path of every

person:

1. That of dying prematurely leaving a dependent family to fend for it.

2. That of living till old age without visible means of support.

Customer satisfied with LIC service because the LIC totally concentrate customer relations

and it makes customers attract towards the LIC.

LIC moves towards better customer relations



Plans to start a new portal for its policyholders

Life Insurance Corporation of India (LIC) is embarking on a number of customer relationship

management initiatives to retain its foothold in the market, in the wake of private players

inching their way up in the life insurance sector.

The Insurance behemoth is planning to tie-up with a number of banks to enable a payment

gateway wherein the policyholders can make their premium payments via credit cards.



INSURANCE IN INDIA:-

Insurance is a federal subject in India and has a history dating back to 1818. Life and general

insurance in India is still a nascent sector with huge potential for various global players with

the life insurance premiums accounting to 2.5% of the country's GDP while general insurance

premiums to 0.65% of India's GDP.[1]. The Insurance sector in India has gone through a

number of phases and changes, particularly in the recent years when the Govt. of India in

1999 opened up the insurance sector by allowing private companies to solicit insurance and

also allowing FDI up to 26%. Ever since, the Indian insurance sector is considered as a

booming market with every other global insurance company wanting to have a lion's share.

Currently, the largest life insurance company in India is still owned by the government.


http://en.wikipedia.org/wiki/FDI

http://en.wikipedia.org/wiki/Insurance_in_India#cite_note-0

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Insurance


History of Insurance in India

Insurance in India has its history dating back till 1818, when Oriental Life Insurance

Company was started by Europeans in Kolkata to cater to the needs of European community.

Pre-independent era in India saw discrimination among the life of foreigners and Indians with

higher premiums being charged for the latter. It was only in the year 1870, Bombay

Mutual Life Assurance Society, the first Indian insurance company covered Indian lives at

normal rates.

At the dawn of the twentieth century, insurance companies started mushrooming up. In the

year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed to

regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary

that the premium rate tables and periodical valuations of companies should be certified by an

actuary. However, the disparage still existed as discrimination between Indian and foreign

companies. The oldest existing insurance company in India is National Insurance Company

Ltd, which was founded in 1906 and is doing business even today. The Insurance industry

earlier consisted of only two state insurers: Life Insurers i.e. Life Insurance Corporation of

India (LIC) and General Insurers i.e. General Insurance Corporation of India (GIC). GIC had

four subsidiary companies.

With effect from December 2000, these subsidiaries have been de-linked from parent

company and made as independent insurance companies: Oriental Insurance Company


http://en.wikipedia.org/wiki/Oriental_Insurance_Company_Limited

http://en.wikipedia.org/wiki/December_2000

http://en.wikipedia.org/wiki/General_Insurance_Corporation_of_India

http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India


http://en.wikipedia.org/wiki/Kolkata


Limited, New India Assurance Company Limited, National Insurance Company Limited and

United India Insurance Company Limited.

LIC is planning to start a new portal for its policyholders where a customer can log in, get

details on his/her policies, and change the resident address when he/she shifts to a new place

and even take a printout of the income tax certificate. The portal is likely to be ready in a

month’s time.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil

started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started

its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the

life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective

of protecting the interests of the insuring public.

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA

At Present 16 life insurance companies are operating in India. Out of 16 companies 15 are

private players and one i.e. Life Insurance corporation of India is in Public sector holding

major portion of Life insurance market share in India. The list of Life insurance companies is

as follow:


http://en.wikipedia.org/wiki/United_India_Insurance_Company_Limited

http://en.wikipedia.org/w/index.php?title=National_Insurance_Company_Limited&action=edit&redlink=1

http://en.wikipedia.org/wiki/New_India_Assurance_Company_Limited

http://en.wikipedia.org/wiki/Oriental_Insurance_Company_Limited


S.No NAME OF THE COMPANY

1. Bajaj Allianz Life Insurance Company Limited.

2. Birla Sun Life Insurance Co. Ltd

3. HDFC Standard Life Insurance Co. Ltd

4. ICICI Prudential Life Insurance Co. Ltd

5. ING Vysya Life Insurance Company Ltd.

6. Life Insurance Corporation of India

7. Max New York Life Insurance Co. Ltd

8. Met Life India Insurance Company Pvt. Ltd.

9. Kotak Mahindra Old Mutual Life Insurance Limited

10. SBI Life Insurance Co. Ltd

11. Tata AIG Life Insurance Company Limited

12

Reliance Life Insurance Company Limited.

13

Aviva Life Insurance Co. India Pvt. Ltd.

14 Sahara India Life Insurance Co, Ltd.

15 Shriram Life Insurance Co, Ltd.


http://www.saharalife.com/

http://www.avivaindia.com/

http://www.reliancelife.co.in/

http://www.tata-aig.com/

http://www.sbilife.co.in/

http://www.omkotakmahindra.com/

http://www.metlife.co.in/

http://www.maxnewyorklife.com/

http://www.licindia.com/

http://www.ingvysyalife.com/

http://www.iciciprulife.com/

http://www.hdfcinsurance.com/

http://www.birlasunlife.com/

http://www.bajajallianz.co.in/


16 Bharti AXA Life Insurance Company Ltd.



Related Acts:-

The insurance sector went through a full circle of phases from being unregulated to

completely regulated and then currently being partly deregulated. It is governed by a number

of acts, with the first one being the Insurance Act, 1938.

The Insurance Act, 1938

The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide

strict state control over insurance business.

Life Insurance Corporation Act, 1956

Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life

insurance in India was completely nationalized, through a Government ordinance; the Life

Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to,

inter-alia, form LIFE INSURANCE CORPORATION after nationalization of the 245

companies into one entity. There were 245 insurance companies of both Indian and foreign

origin in 1956. Nationalization was accomplished by the govt. acquisition of the management

of the companies. The Life Insurance Corporation of India was created on 1 September,

1956, as a result and has grown to be the largest insurance company in India as of 2006.[2]

General Insurance Business (Nationalization) Act, 1972

The General Insurance Business (Nationalization) Act, 1972 was enacted to nationalize the

100 odd general insurance companies and subsequently merging them into four companies.

All the companies were amalgamated into National Insurance, New India Assurance, Oriental

Insurance, and United India Insurance which were headquartered in each of the four

metropolitan cities.[3]



http://en.wikipedia.org/wiki/1972



http://en.wikipedia.org/wiki/1956

http://en.wikipedia.org/wiki/January_19


INTRODUCTION OF SOME LIFE INSURERS.

BIRLA SUN LIFE

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla

Group, one of the largest business houses in India and Sun Life Financial Inc., a leading

international financial services organization. The local knowledge of the Aditya Birla Group

combined with the expertise of Sun Life Financial Inc., offers a formidable protection for

your future. (Source: www.birlasunlife.com)

BAJAJ ALLIANZ

Bajaj Allianz is a joint venture between Allianz AG with over 110 years of experience in over

70 countries and Bajaj Auto, a trusted automobile manufacturer for over 55 years in the

Indian market. Together they are committed to offering you financial solutions that provide

all the security you need for your family and yourself. Bajaj Allianz is the number one private

life insurer for the year 2005 – 2006. It is leading by 78 crores. It has experienced a whopping

growth of 216% in the last financial year.

TATA AIG

Tata Aig is a joint venture between the Tata group and American International Group Inc. In

one of the plans the company offers hospital cash benefit wherein it will pay Rs. 2500 per day

in case of hospitalization and Rs.12.5 lakhs in case the person suffers from any critical

illness. Annual premium is much less (about Rs. 6712) to avail such a good benefit. Charges

are relatively low compared to HDFC Standard for some policies.

The company offers high coverage plans at low cost. There is a plan even for a policy term of

1 year. Your family can continue to enjoy their current lifestyle even in the case of something

happening to you. These plans are very flexible and HDFC Standard could adopt this idea of

insuring individuals for short periods of time. For example; there is a family of four. The only

earning member is the father.



ICICI PRUDENTIAL

ICICI Prudential is a stiff competitor for HDFC Standard. The company is a merger between

ICICI Bank which is the biggest private bank in India and Prudential Plc which is a global

life insurance company.

The company has an investment plan which is market related – Invest Shield Life. In this

plan even if the market falls, the premium will be returned to investors. It is a guaranteed plan

which ensures the company carefully invests your money.

AVIVA LIFE INSURANCE

Aviva has 156 Branches in India (including rural branches) supporting its distribution network. Through its Bancassurance partner locations, Aviva products are available in 497 towns and cities across India. With a strong sales force of over 27,000 Financial Planning Advisers (FPAs), Aviva has initiated an innovative and differentiated sales approach to the business. Through the “Financial Health Check” (FHC) Aviva’s sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customer’s long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them.

ING Vysya Life Insurance

It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore.



You can pay LIC premiums using Net Banking accounts with any of the following banks:-

Bank of India Union Bank of India Punjab National Bank State Bank of India State Bank of Indore HDFC Bank ICICI Bank Axis Bank Citibank IDBI Bank Centurion Bank of Punjab (erstwhile Centurion Bank) Centurion Bank of Punjab (erstwhile Bank of Punjab) IndusInd Bank ABN AMRO Bank Kotak Bank Bank of Baroda Bank of Baroda - Retail NetBanking Bank of Baroda - Corporate NetBanking State Bank of Patiala State Bank of Bikaner & Jaipur State Bank of Travancore City Union Bank Indian Overseas Bank Karnataka Bank Oriental Bank of Commerce State Bank of Hyderabad State Bank of Mysore State Bank of Saurashtra South Indian Bank Yes Bank

This facility is available for all non-ULIP policies.Credit card payments are not accepted under this payment facility.

ETOP Analysis of the Indian Insurance Industry.

Environmental threat and opportunity profile also known as environmental impact matrix is a summarized depiction of the environmental factors and their likely impact on organization. ETOP is the most useful way of structuring the result of environmental analysis. It can be prepared in the following way:



Environmental Factors

Environmental Analysis Effect

Economic (+) The Insurance industry is growing at the rate of 40 per cent per annum. (Average).

(-) The global downturn has affected the Insurance Industry in a very bad manner.

Opportunity

Threats

Technological (+) With the passage of time the Insurance industry is expanding through technological aspects like Online Premium & Selling of Insurance Online.

(+) Insurance Industry score over the Other service providers, in providing terms of technology Implementation Industries, giving both cost and service Advantages.

Opportunity

Opportunity

Political & Legal (+) They restrict foreign Insurance sector to develop their business in India

Opportunity

Social (+) Change in life style pattern in terms of savings and investments.(+) Multinational Insurance Companies are now looking to enter into India and trying to share their culture with us.

Opportunity

Opportunity

CHAPTER 2 :- INTRODUCTION OF THE COMPANY

History

Life Insurance in its modern form came to India from England in the year 1818. Oriental

Life Insurance Company stated by Europeans in Calcutta was the first life insurance

company on Indian Soil. All the insurance companies established during that period were



brought up with the purpose of looking after the needs of European community and Indian

natives were not being insured by these companies.

However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life

insurance companies started insuring Indian lives. But Indian lives were being treated as

sub-standard lives and heavy extra premiums were being changed on them. Bombay

Mutual Life Assurance Society heralded the birth of first Indian life insurance company in

the year 1870, and covered Indian lives at normal rates.

Starting as Indian enterprise with highly patriotic motives, insurance companies came into

existence to carry the message of insurance and social security through insurance to

various sectors of society. Bharat Insurance Company (1896) was also one of such

companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to

more insurance companies. The United India in Madras, National Indian and National

Insurance in Calcutta and the Hindustan Co-operative Insurance Company took its birth

in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in

Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay

Life) were some of the companies established during the same period. Prior to 1912. India

had no legislation to regulate insurance business. In the year 1912, the Life Insurance

Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies

Act, 1912 made it necessary that the premium rate tables and periodical valuations of

companies should be certified by an actuary.

But the act discriminated between foreign and Indian companies on many accounts,

putting the Indian companies at a disadvantage. The first two decades of the twentieth

century saw lot of growth in insurance business. From 44 companies with total business-

in force as Rs. 22.44 crore, it rose to 176 companies with total business-in-force as Rs.

298 crore in 1938. During the mushrooming of insurance companies many financially

unsound concerns were also floated which failed miserably. The Insurance Act 1938 was

the first legislation governing not only life insurance but also non-life insurance to

provide strict state control over insurance business. The demand for nationalization of life

insurance industry was made repeatedly in the past but it gathered momentum in 1944

when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative

Assembly. However, it was much later on the 19th of January, 1956, that life insurance in



India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies

and 75 provident were operating in India at the time of nationalization, nationalization

was accomplished in two stages; initially the management of the companies was taken

over by means of an Ordinance, and later, the ownership too by means of a

comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act

on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st

September, 1956, with the objective of spreading life insurance much more widely and in

particular to the rural areas with a view to reach all insurable persons in the country,

providing them adequate financial cover at reasonable cost. LIC had 5 zonal offices, 33

divisional offices and 212 branch offices, apart From its corporate office in the year 1956.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional

offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100

divisional offices and connects all the branches through a Metro Area Network. LIC has

tied up with some Banks and Service providers to offer on-line premium collection

facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition

to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been

commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New

Delhi, Pune and many other cities. With a vision of providing easy access to its

policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite

offices are smaller, leaner and closer to the customer. The digitalized records of the

satellite offices will facilitate anywhere servicing and many other conveniences in the

future.

COMPANY PROFILE



Type: Public limited company or Government-owned corporation Founded:

September 1, 1956

Headquarters: Headquarters in Mumbai, India (Various other locations in India and

abroad)

Key people: T. S. Vijayan (Chairman), D. K. Mehta and Thomas Mathew (Managing

Directors)

Industry: Life insurance

Products: Insurance and Pension Plans

Employees: Over 10, 00,000

Parent: NIL

Subsidiaries: LIC Housing Finance Limited, etc.

Website: http://www.licindia.com

BOARD OF DIRECTORS

Members On The Board Of The Corporation

Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC)

Shri. Thomas Mathew T. (Managing Director - LIC)

Shri. A.K. Dasgupta (Managing Director - LIC)



Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)

Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of Finance, Govt. of India.)

Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)

Shri D.L. Rawal (Chairman & Managing Director , Dena Bank)

Dr. Sooranad Rajashekhran

Shri. Monis R. Kidwai

Lt. General Arvind Mahajan ( Retd.)



Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) is a Government of India enterprise, and is said to

be the largest life insurance company and also the largest investor of the country. LIC had

been established on the 1st of September, 1956, after the Life Insurance Corporation Act has

been passed by the Parliament of India in the same year. The corporation is aimed at

providing life insurance services primarily to the rural masses and the socially &

economically backward sections of the Indian society. It also aims at promoting the people

for saving their money, and offers attractive savings features along with various insurance

policies.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life

Insurance Company stated by Europeans in Calcutta was the first life insurance company on

Indian Soil. All the insurance companies established during that period were brought up with

the purpose of looking after the needs of European community and Indian natives were not

being insured by these companies.

MISSION/VISION

Mission

“Explore and enhance the quality of life of people through financial security by providing

products and services of aspired attributes with competitive returns, and by rendering

resources for economic development.”

Vision

“A trans-nationally competitive financial conglomerate of significance to societies and Pride

of India.” LIC of India is the one and only public sector life insurance Company in India.



Products of LIC

1. LIC - Jeevan Anurag

Benefits

LIC’s Jeevan ANURAG is a with profits plan specifically designed to take care of

the educational needs of children. The plan can be taken by a parent on his or her

own life. Benefits under the plan are payable at prespecified durations irrespective of

whether the Life Assured survives to the end of the policy term or dies during the

term of the policy. In addition, this plan also provides for an immediate payment of

Basic Sum Assured amount on death of the Life Assured during the term of the

policy.

Assured Benefit

Payment of 20% of the Basic Sum Assured at the start of every year during last 3

policy years before maturity. At maturity, 40% of the Basic Sum Assured along with

reversionary bonuses clared from time to time on full Sum Assured for the full term

and the Terminal b onus, if any shall be payable. For example, if term of the policy is

20 years, 20% of the Sum assured will be payable the end of the 17th, 18th, 19th year

and 40% of the Sum Assured along with the reversionary onuses and the terminal

bonus, if any, at the end of the 20th year.

Death Benefit

Payment of an amount equal to Sum Assured under the basic plan immediately on

the death of the life assured.



2. LIC - Jeewan Kisore

Product summary:

This is an Endowment Assurance Plan available for children of less than 12 years of

age. The policy may be purchased by any of the parent/grand parent.

Commencement of risk cover:

The risk commences either after 2 years from the date of commencement of policy or

from the policy anniversary immediately following the completion of 7 years of age of

child, whichever is later.

Premiums:

Premiums are payable yearly, half-yearly, quarterly or monthly throughout the term of

the policy or till earlier death of child.

Bonuses:

This is a with-profits plan and participates in the profits of the Corporation’s

life insurance business. It gets a share of the profits in the form of bonuses. Simple

Reversionary Bonuses are declared per thousand Sum Assured annually at the end of

each financial year. Once declared, they form part of the guaranteed benefits of the

plan. A Final (Additional) Bonus may also be payable provided policy has run for

certain minimum period.



3. LIC – Childs Career Plan

Introduction:

This plan is specially designed to meet the increasing educational and other needs of

growing children. It provides the risk cover on the life of child not only during the

policy term but also during the extended term (i.e. 7 years after the expiry of policy

term). A number of Survival benefits are payable on surviving by the life assured to

the end of the specified durations.

Options:

You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of

Premium payment and Premium Waiver Benefit.

Payment of Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or through

Salary deductions over the term of policy. Premiums may be paid either for 6 years

or up to 5 years before the policy term.



4. LIC - Jeevan Chhaya

Product summary:

This is an Endowment Assurance plan that provides financial protection against

death throughout the term of the plan. Besides payment of Sum Assured

immediately on death, one-fourth of Sum Assured is payable at the end of each of

last four years of policy term whether the life assured dies or survives the term of

the policy.

Premiums:

Premiums are payable yearly, half-yearly, quarterly, monthly or through salary

deductions as opted by you throughout the term of the policy or till the earlier death.

5. LIC - Child Future Plan

Introduction:

This plan is specially designed to meet the increasing educational, marriage and

other needs of growing children. It provides the risk cover on the life of child not

only during the policy term us also during the extended term (i.e. 7 years after the

expiry of policy term). A number of survival benefits ae payable on surviving by the

life assured to the end of the specified Durations.

Options:

You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of

Premium payment and Premium Waiver Benefit.

Payment of Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or through

Salary deductions over the term of policy. Premiums may be paid either for 6 years

or up to 5 years before the policy term.



6. LIC – Jeevan Shree

Product summary:

This is an Endowment Assurance plan offering the choice of many convenient

premium-paying terms. It provides financial protection against death throughout

the term of plan with the payment of maturity amount on survival to the end of

the policy term.

Premiums:

Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary

deductions, as opted by you, throughout the premium paying term or till earlier

death. Alternatively premium may be paid in one lump sum.

Guaranteed Additions:

The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per

thousand Sum Assured for each completed year for first five years of the policy.



OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural areas and to the socially

and economically backward classes with a view to reaching all insurable persons in

the country and providing them adequate financial cover against death at a reasonable

cost.

Maximize mobilization of people’ savings by making insurance-linked savings

adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its policyholders,

whose money it holds in trust, without losing sight of the interest of the community as

a whole; the funds to be deployed to the best advantage of the investors as well as the

community as a whole, keeping in view national priorities and obligations of

attractive return.

Conduct business with utmost economy and with the full realization that moneys

belong to the policyholders.

Act as trustees of the insured public in their individual and collective capacities.

Meet the various life insurance needs of the community that would arise in the

changing social and economic environment.

Involve all people working in the Corporation to the best of their capability in

furthering the interests of the insured public by providing efficient service with

courtesy.



RESTRICTIVE CONDITIONS

Minimum age at entry :18 years (completed)

Maximum age at entry :60 years (nearest birthday)

Maximum age at maturity :70 years (nearest birthday)

Minimum Policy Term :5 years

Maximum Policy term :35 years

Minimum Sum Assured :Rs.25,00,000/-

Maximum Sum Assured : No Upper Limit

(Policies will be issued in multiples of Rs.100,000/- for Sums Assured

more than the minimum Sum Assured)

Mode of premium payment : Yearly, Half-yearly & Single Premium



AWARDS AND ACHEIVEMENT:

CNBC Awaaz Consumer awards 2010Reader Digest Trusted Brand

Insurance category 2010

OUTLOOK MONEY -- NDTV PROFIT AWARD 2009 in

" BEST LIFE INSURER CATEGORY "

World Brand Congress Award

Golden Peacock Innovative Product / Service Award - 2009

ASIA PACIFIC HRM Congress, 2009 Award for INNOVATIVE HR

PRACTICES



Loyalty Award – 2009NDTV Profit Business Leadership

Award 2008

INDY's Silver Award for Best Corporate Film

NASCOM IT USER Award 2008

Business Super brand India 2009 ASIA BRAND CONGRESS BRAND LEADERSHIP AWARD ,2008



S.W.O.T. ANALYSIS

A proper S.W.O.T. analysis of LIC has also been conducted to know better about the

position, growth, and upcoming future and prospective of the company.

STRENGTHS

LIC is on 1st rank among the Insurance player.

Long-term plans of LIC are the main strength.

After sales services.

Products cost are very low.

Customer does not believe on private company.

WEEKNESS

Low interest rate is the weakness of the LIC company

OPPORTUNITIES

Good brand promotion.

1/2nd- % insurance has been covered.

THREATS

There are many competitors In the market.

Entry of Private Insurance banks.



Market Share

NAME OF THE PLAYER MARKET SHARE (%)

MARKET SHARE ANALYSIS Percentage

Life Insurance Corporation of India 67%

ICICI Prudential Life Insurance Co Ltd 9.00%

Bajaj Allianz Life Insurance Co Ltd 6.36%

SBI Life Insurance Co Ltd 4.50%

Reliance Life Insurance Co Ltd 2.50%

HDFC Standard Life Insurance Co Ltd 2.88%

Birla Sun Life Insurance Co Ltd 2.00%

Max New York Life Insurance Co Ltd 1.55%

Kotak Mahindra Old Mutual Life Insurance Ltd 1.00%

Aviva Life Insurance Company India Ltd 1.20%

Others 2.01%



67.00%

9.00%

6.36%

4.50%2.50%

2.88%2.00%

1.55%1.00% 1.20% 2.01%

MARKET SHARE ANALYSIS

Life Insurance Corporation of IndiaICICI Prudential Life Insurance Co Ltd Bajaj Allianz Life Insurance Co LtdSBI Life Insurance Co LtdReliance Life Insurance Co Ltd HDFC Standard Life Insurance Co Ltd Birla Sun Life Insurance Co LtdMax New York Life Insurance Co LtdKotak Mahindra Old Mutual Life Insurance LtdAviva Life Insurance Company India LtdOthers



CHAPTER 3:-THEORETICAL ASPECTS OF THE STUDY

Definition of service quality

"Service quality is a focused evaluation that reflects the customer's perception of specific

dimensions of service: reliability, responsiveness, assurance, Empathy, tangibles.

Satisfaction, on other hand, is more inclusive: it is influenced by perceptions of service

quality, product quality, and price as well as situational factors and personal factors.

The five service dimensions are:

TANGIBLES:-

Appearance of physical facilities, equipment, personnel, and communication materials

ABILITY

Ability to perform the promised service dependably and accurately

RESPONSIVENESS

Willingness to help customers and provide prompt service

ASSURANCE

Knowledge and courtesy of employees and their ability to convey trust and

confidence

EMPATHY

Caring, individualized attention the firm provides its customers

Strong customer service is a business essential. Providing it isn’t as difficult if you and your

employees achieve these 10 basic rules:



1. Commit to quality service.

In LIC of India Everyone devoted to creating a positive experience for the customer.

Always try to go above and beyond customer expectations.

2. Knowledge about products.

Convey an articulate and in-depth knowledge of products and services to win

customer trust and confidence. They know their company’s products, services, and

return policies inside and out. Also try to anticipate the types of questions that

customers will ask. Anyone can easily Update and amend their FAQ page frequently.

3. Know your customers.

They can try to learn everything about the customers in order to tailor their service

approach to customers’ needs and buying habits. Talk to customers about their

experience with the company, and listen their complaints. In this way, they can get to

the root of customer dissatisfaction.

4. Treat people with courtesy and respect.

Employee or the agents of the LIC of India always treat or react with respect to their

customers. Whether it’s by email, phone, written correspondence, or a face-to-face

meeting. This interaction leaves an impression with that customer. Use conciliatory

phrases — "Sorry to keep you waiting," "Thanks for your order," "You’re welcome,"

and "It’s been a pleasure helping you" etc.

5. Never argue with a customer.

They know very well that the customer isn’t always right. However, they do not focus

on the missteps of a particular situation; instead, concentrate on how to fix it.

Research shows that 7 out of 10 customers will do business with a company again if

that business resolves a complaint in their favor.



6. Don’t leave customers in limbo.

LIC agents or employee Repairs, callbacks, and emails handled with a sense of

urgency. They know Customers want immediate resolution, and if they can give it to

them, they will probably win their repeat business. Research shows that the instance

of repeat business goes up to 95 percent when complaints are resolved on the spot.

7. Always provide what you promise.

They know very well that if they fail to do this than they will lose both credibility and

customers. If they guarantee a quote within 24 hours, they quote out in a day or less.

when they neglect to make good on their promise, apologize to the customer and offer

some type of compensation, such as a discount or free delivery.

8. Assume that customers tell the truth.

Even though it may appear that customers lie to manipulate a situation to their

advantage, they hope that it is their advantage to give them the benefit of the doubt.

The majority of customers don’t like to complain; in fact, they will go out of their

way — perhaps all the way to a competitor — to avoid it. If they hear unhappy

rumblings from their customers, take their complaints to heart and do their best to

appease their dissatisfaction.

9. Focus on making customers not on sales.

Salespeople, especially those who get paid on commission, sometimes focus on the

volume instead of on the quality of the sale. But an agent or employee of LIC give

more important to customer’s business is more than to close a sale. Research shows

that it costs six times more to attract a new customer than it does to keep an existing

one. Moreover, happy customers are the best and most effective way to find new

customers.



10. Make it easy to buy.

The buying experience in their store, on Web site, or through catalog should be as

easy as possible. People can’t find unnecessary paperwork and forms. They help

people to find what they need, explain how products work.

What is customer loyalty?

The term customer loyalty is used to describe the behavior of repeat customers, as well as

those that offer good ratings, reviews, or testimonials. Some customers do a particular

company a great service by offering favorable word of mouth publicity regarding a product,

telling friends and family, thus adding them to the number of loyal customers. However

customer loyalty includes much more. It is a process, a program, or a group of programs

geared toward keeping a client happy so he or she will provide more business.

Customer loyalty can be achieved in some cases by offering a quality product with a firm

guarantee. Customer loyalty is also achieved through free offers, coupons, low interest rate

on financing, high value trade-ins, extended warranties, rebates, and other rewards and

incentive programs. The ultimate goal of customer loyalty programs is happy customers who

will return to purchase again and persuade others to use that company's products or services.

This equates to profitability, as well as happy stakeholders

The key to a successful business is a steady customer base. After all, successful businesses

typically see 80 percent of their business come from 20 percent of their customers. Too many

businesses neglect this loyal customer base in pursuit of new customers. However, since the

cost to attract new customers is significantly more than to maintain your relationship with

existing ones, your efforts toward building customer loyalty will certainly payoff.



Here are ten ways to build customer loyalty:

1. Communicate.

Employees or the agent of the LIC of the India sent an email newsletter, monthly flier,

a reminder card for a tune up, or a holiday greeting card, reach out to their teddy

customers.

2. Customer Service.

LIC of India go the extra distance and meet their customer needs. They also Train the

staff to do the same. Customers remember being treated well.

3. Employee Loyalty.

Loyalty works from the top down. they are loyal to their employees, they will feel

positively about their jobs and pass that loyalty along to your customers.

4. Employee Training.

They train their employees in the manner that they want them to interact with

customers. Empower employees to make decisions that benefit the customer.

5. Customer Incentives.

They Give customers a reason to return to their business. For instance, they give bonus

to their customers or offer free gift coupons etc;

6. Product Awareness.

They Know what steady customers purchase and keep these products to sell them .

and they also add other products and/or services that accompany or compliment the

products that your regular customers buy regularly. And they are sure about that their

staff understands everything about their products.



7. Reliability.

They always reliable to their customers. If something goes wrong, they immediately

inform to their customers and compensate them for their inconvenience.

8. Be Flexible.

They are always ready to solve customer problems or complaints to the best of their

ability. And provide accurate result in a short time period.

9. People over Technology.

The harder it is for a customer to speak to a human being when he or she has a

problem, the less likely it is that you will see that customer again.

10. Know Their Names.

They know the names of regular customers or at least recognize their faces.



Relationship Between Service quality and Customer Loyalty

In various studies the relationship between service quality and customer preference loyalty

had been examined (Boulding, Kalra, Staelin, & Zeithaml, 1993; Cronin & Taylor, 1992). In

their study Cronin and Taylor (1992) focused solely on repurchase intentions, whereas

Boulding et al. (1993) focused on the elements of repurchasing as well as the willingness to

recommend. In the study by Cronin and Taylor service quality did not appear to have a

significant (positive) effect on repurchase intentions (in contrast to the significant positive

impact of satisfaction on repurchase intention), whereas Boulding et al. (1993) found positive

relationships between service quality and repurchase intentions and willingness to

recommend.



CHAPTER 4:-RESEARCH OF THE STUDY

Definition:-

“Research is an organized inquiry designed and carried out to provide information for solving problems.”

- Fred Kerlinger.

-

“Research is careful inquiry or examination to discover new information or relationships and to existing knowledge.”

- Francis Rammel.

OBJECTIVE OF STUDY

The main objective of this study is to study the consumer buying behavior regarding cars.

To know which criteria consumer take in to consideration while purchasing Policy

of LIC.

To know which type of payment they prefer while purchasing Policy of LIC.

Consumer attitude towards the Policy of LIC.

Assessing the main criteria to make product of LIC more marketable.

Scope as the Study

To know and understand the different pensions plans as policy as two leading insurance

company in insurance sector by study and analysis that how and in what manner they attract

the customers of different age and salary groups.



LIMITATION OF STUDY

There are number of limitations but from them few are as below.

Some respondent may not give proper response than it is totally useless.

The limit for the project is only 2 months.

The study is not cover whole population it is limited by the company only for east

zone of Surat city.

RESEARCH COMPONENTS:-

4.1 Research design:-

Research design is the plan for collecting the information related to the study. Research design explains the methods that are used for collecting the information. The research design will focus attention on the different methods that are used for collection of the data. Also it will help to solve the problem. Different forms of collecting the data will be tasted in the research design.

In this case, survey method is used to collect the necessary data in the survey method, the personal interview is used to collect the information from the respondents, and questionnaires are used. The respondents are visited personally, and the detail information is collected related to the study. The question mainly focuses attention on the consumer behavior to fulfill the objective of the study.

Choice of the research design:-

A research design specifies the methods and procedure for conducting a particular study. Broadly the research can be grouped in to three categories.

Exploratory research

Descriptive research

Casual research



1. Exploratory Research Design: - The major emphasis in exploratory Research

Design is on discovery of ideas and insights.

2. Descriptive Research Design: - The descriptive Research Design study is typically

concerned with determining the frequency with which something occurs or the

relationship between two variables.

3. Causal Research Design: - A Causal Research Design is concerned with determining

cause and effect relationship.

In my study, I have used descriptive research method to collect necessary information related to the study.

4.2 DATA COLLECTION METHODS:-

TYPE OF DATA COLLECTED

There are two types of data used. They are primary and secondary data. Primary data is

defined as data that is collected from original sources for a specific purpose. Secondary data

is data collected from indirect sources.

PRIMARY SOURCES

These include the survey or questionnaire method, telephonic interview as well as the

personal interview methods of data collection.

SECONDARY SOURCES

These include books, the internet, company brochures, product brochures, the company

website, competitor’s websites etc, newspaper articles etc.

Sampling unit



In my study the market survey was conducted in surat city. Conducted I have covered different areas under my study. Different areas like kamrej, amroli, varachha & other areas of the city are covered by me during the study.

SAMPLING

Sampling refers to the method of selecting a sample from a given universe with a view to

draw conclusions about that universe. A sample is a representative of the universe selected

for study.

Convenience sampling is used in exploratory research where the researcher is interested in

getting an inexpensive approximation of the truth. As the name implies, the sample is

selected because they are convenient. This non probability method is often used during

preliminary research efforts to get a gross estimate of the results, without incurring the cost or

time required to select a random sample. (Source: www.statpac.com)

SAMPLE SIZE

The sample size for the survey conducted was 50 respondents.


http://www.statpac.com/


CH. – 5 DATA ANALYSIS AND FINDINGS

Q 1) Do you have Product of LIC?

Particular Number Percentage

Yes 90 90%

No 10 10%

Interpretation:-

From the above chart we can say that 90% customer have product of LIC and 10% customer

have product of other companies, from that we can say that the trust of the people towards

LIC is too much high as compared to other players in insurance sector.

Q 2) which type of insurance do you have?



Particular Number Percentage

Mediclaime 30 30%

Life Insurance 65 65%

Others 5 5%

30%

65%

5%

MediclaimeLife InsuranceOthers

Interpretation:-

From the above chart we can say that 30% customers have Mediclaime and 65% customer have life insurance and 5% customer have other type of insurance. Thus we can say that people are ready or prepared in advance for competing immediate circumstances which will arise in their future life.



Q 3)

Expectation:- It shows the extent to which you think insurance company (Life) should posses following features;

Scores

Tangibles

Excellent Life Insurance Company will have modern equipment.

1 2 3 4 5

Materials associated with service (such as forms, payment, bandages etc...) will be visually appealing at an excellent company.

1 2 3 4 5

Average Tangibility

Perception:- It shows the extent to which you think-insurance company (life) should posses following features;

Scores

Tangibles

LIC has modern looking equipment 1 2 3 4 5

Materials associated with service (such as forms,-payment,-bandages etc...) will be visually appealing in LIC company.

1 2 3 4 5

Average Tangibility



AVERAGE E

XPECTA

TION

AVERAGE P

ERCEP

TION

DIFFER

ENCE

-5

0

5

10

15

20

2524.47 24.4

-0.07

24.6 24.87

0.27

MODERN EQUIPMENTMATERIAL

AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE

MODERN EQUIPMENT

24.47 24.4 -0.07

MATERIAL 24.6 24.87 0.27

Interpretation:-

From the above chart we can say that as there is not much difference between perception perceived by the company and the expectation fulfillment of customers. we can say that company is successful in providing customers value services as per the expectations of customers.



Q 4)

Expectation Reliability

When companies do something by a certain time, they do.

1 2 3 4 5

When customer has a problem, company will show sincere interest in solving it.

1 2 3 4 5

Excellent firms will perform the activity of issuing cheque of sum assured right the first time.

1 2 3 4 5

Life insurance company will provide the services at the time they promise to do so.

1 2 3 4 5

Excellent life insurance company will insist on error-free record.

1 2 3 4 5

Average Reliability

Perception Reliability


1 2 3 4 5

When customers (you) have a problem, LIC company will show sincere interest in solving it.

1 2 3 4 5

LIC Company will perform the activity of issuing cheque of sum assured right the first time.

1 2 3 4 5

LIC Company will provide the services at the time it promises to do so.

1 2 3 4 5

LIC company will insist on error-free record.

1 2 3 4 5

Average Reliability



Time p

unctuali

ty

Problem

solution

issue o

f cheq

ue

fulfillmen

t of p

romise

error f

ree re

cord

-5

0

5

10

15

20

25

30

AVERAGE - perceptionAVERAGE - ExpectationDIFFERENCE

AVERAGE - perception

AVERAGE - Expectation

DIFFERENCE

Time punctuality 25.6 25.93 -0.33Problem solution 25.53 26.4 -0.87issue of cheque 23.07 26.27 -3.2fulfillment of promise

26 25.13 0.87

error free record 26.93 27.07 -1.04

Interpretation:-

From the above chart we can say that as there is not much difference between perception perceived by the company and the expectation fulfillment of customers. we can say that company is successful in providing customers value services as per the expectations of



customers. Only incase of issue of cheque company is unable to provide satisfactory services to extent.

Q.5)

Expectation Responsiveness

Employees of excellent life insurance firms will tell the customers when services will be performed.

1 2 3 4 5

Employees of excellent life insurance firms will give prompt services to customers.

1 2 3 4 5

Employees of excellent life insurance firms will always be willing to help customer.

1 2 3 4 5

Employees of excellent life insurance firms will never be too busy to respond to customers’ requests.

1 2 3 4 5

Average Responsiveness

Responsiveness

Employees of LIC company will tell the customers when services will be performed.

1 2 3 4 5

Employees of LIC Company will give prompt services to customers.

1 2 3 4 5

Employees of LIC Company will always be willing to help customers.

1 2 3 4 5

Employees of LIC company will never be too busy to respond to customers’ requests.

1 2 3 4 5




EMPLO

YEES

INFO

RMED TO

CUSTOMER

S

EMPLO

YEES

GIVE PROMPT S

ERVICES

EMPLO

YES W

ILLING TO

HELP CUST

OMER

EMPLO

YEES

NEVER

TO BUSY

TO RES

POND -5

0

5

10

15

20

25

30

AVERAGE EXPECTATIONAVERAGE PERCEPTIONDIFFERENCE

AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE

EMPLOYEES INFORMED TO CUSTOMERS

22.8 23.93 0.5

EMPLOYEES GIVE PROMPT SERVICES

25.13 22.87 -2.26

EMPLOYES WILLING TO HELP CUSTOMER

23.6 29.53 5.93

EMPLOYEES NEVER TO BUSY TO RESPOND

29.4 29.4 0

Interpretation:-

As per above chart we can say that as compared to other factors the back office which is also known as employee help desk is not organized enough to help the customers and solve their quarries 24/7 and are not able to provide them a value services.



Q 6)

Expectation Assurance

The behavior of employees in excellent life insurance firms will instill confidence in customers.

1 2 3 4 5

Insured customers of excellent life insurance firms will feel safe with insurance services.

1 2 3 4 5

Employees in excellent life insurance firms will be consistently courteous to customer.

1 2 3 4 5

Employees in excellent life insurance firms will have the knowledge to answer the customers’ questions.

1 2 3 4 5

Average Assurance

Perception Assurance

The behavior of employees in LIC company will instill confidence in customers.

1 2 3 4 5

Insured customers of LIC company will feel safe with insurance services.

1 2 3 4 5

Employees in LIC company will be consistently courteous to customers.

1 2 3 4 5

Employees in LIC company will have the knowledge to answer the customers’ questions.

1 2 3 4 5

Average Assurance



BEHAVIOUR OF EMPLOYEES

SAFE WITH THE INSURANCE

COURTEOUS TO CUSTOMERS

KNOWLEDGE TO ANSWER

-5

0

5

10

15

20

25


AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE

BEHAVIOUR OF EMPLOYEES

21.67 20.8 -0.87

SAFE WITH THE INSURANCE

24.33 22.8 -1.53

COURTEOUS TO CUSTOMERS

22.4 21.6 -0.8

KNOWLEDGE TO ANSWER

21.87 20.13 -1.74

Interpretation:-

From the above chart we can say that employees behavior towards customers with relation to various services is not satisfactory and their response is not solving the quires and giving knowledge to various customers



Q 7)

Expectation Empathy

Excellent company will give customers individual attentions.

1 2 3 4 5

Excellent company will have working hour convenient for all the customers

1 2 3 4 5

Excellent company will have employees who give customers personal attention.

1 2 3 4 5

Excellent company will have their customers’ best interest at heart.

1 2 3 4 5

The employees of excellent companies will understand the specific needs of their customers.

1 2 3 4 5

Average Empathy

Perception Empathy

LIC company will give individual attentions on customers.

1 2 3 4 5

LIC company will have working hour convenient for all its customers.

1 2 3 4 5

LIC company will have employees who give customers personal attention.

1 2 3 4 5

LIC company will have their customers’ best interest at heart.

1 2 3 4 5

The employees of LIC company will understand the specific needs of their customers.

1 2 3 4 5

Average Empathy



INDIVIDUAL ATT

ENTIO

N

CONVENIEN

T TO CUST

OMERS

CUSTOMER

PERSO

NEL ATT

ENTIO

N

BEST I

NTERES

T AT H

EART

UNDERST

AND THE S

PECIFI

C NEEDS

-5

0

5

10

15

20

25


AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE

INDIVIDUAL ATTENTION

25 23.53 -1.47

CONVENIENT TO CUSTOMERS

24.07 22.6 -1.47

CUSTOMER PERSONEL ATTENTION

23.13 22.2 -0.93

BEST INTEREST AT HEART

24.6 23.47 -1.13

UNDERSTAND THE SPECIFIC NEEDS

22.67 21.4 -1.27

Interpretation:-

From the above chart we can say that unlike other services and their personal attention facilities life insurance companies agents and employees are unable to provide the personal needs and likes of different customers at up to the mark level.



Q 8) SERVQUAL SCORE

CRITERIA Weight Weighted Average

score

TANGIBILITY 10 10

RELIABILITY 30 -27.3

RESPONSIVENESS 20 20.8

ASSURANCE 10 -12.2

EMPATHY 30 -37.5

TOTAL 100 -46.2

Average of Weighted Average score = Weighted Average score

5

= (- 46.2 / 5)

= -9.24

TANGIBILIT

Y

RELIABILIT

Y

RESPONSIV

ENES

S

ASSURANCE

EMPATH

Y

-40

-30

-20

-10

0

10

20

30

Average

Average

As per above chart we can say that as services can only be felt and not be touched tangibility

secures the least average as compared to others and even we cannot assure the same

satisfaction every time.



Q 9) How long have you been the customer of this company?

912

38

31

1 to 2 Yrs.2 to 4 Yrs.4 to 6 Yrs.6 to 10 Yrs.

Sr. No. Particular Percentage

1. 1 to 2 Years 10.00%

2. 2 to 4 Years 13.33%

3. 4 to 6 Years 42.22%

4. 6 to 10 Years 34.45%

Interpretation:-

From the above chart we can say that customer believe in having short term policies from this company and also long term policies like life insurance policies and others.



Q 10) I have received a proper demonstration on the product that you bought by the

concerned professional

Strongly agree

5

Agree

4

Average

3

Disagree

2

Strongly dis agree

1

31

2115

12

11

Strongly AgreeAgreeAverageDisagreeStrongly disagree


1. Strongly Agree 34.44%

2. Agree 23.33%

3. Average 16.67%

4. Disagree 13.33%

5. Strongly Disagree 12.22%

Interpretation:-



From the above analysis we can say that as lic services is concerned with the life of various respondents they need to be made satisfied for the purchase of services so the concerned professional are able to reach the expectation level of various customers.

Q 11) the time is taken by LIC for documentation process is reasonable.

Strongly agree

5

Agree

4

Average

3

Disagree

2

Strongly dis agree

1

35

23

12

11 9

Strongly AgreeAgreeAverageDisagreeStrongly Disagree



2. Agree 25.56%

3. Average 13.33%

4. Disagree 12.22%


Interpretation:-



From the above chart we can say that because of great technologies used in corporate world the time taken to get any service is quiet easier as compare to past era.

Q 12) I like to purchase different policy from this company again.

Strongly agree

5

Agree

4

Average

3

Disagree

2

Strongly dis agree

1

41

26

17 4 2


Sr. No.

Particular Percentage


2. Agree 28.89%

3. Average 18.89%

4. Disagree 04.44%




Interpretation:-From the above chart we can say that as people are concerned of their near and dear ones and family members they are always interested to take up a various new policies concerned with their life’s so that they fell insured and the risk of paying high amount during any mishap is almost reduced.



Q 13) I would like to recommend products of this company to my friends and relatives.

Strongly agree

5

Agree

4

Average

3

Disagree

2

Strongly dis agree

1

36

27

10

8 9




2. Agree 30.00%

3. Average 11.11%

4. Disagree 08.89%


Interpretation:-

From the above graph we can say that as we have seen above that people are satisfied even for after sale services and they think of buying its various products and services that’s why they would like to recommend its products to their friends and relatives



FINDINGS

Most of the respondents have LIC policy because they are concern about their future and

their family

In my study I found that most of the respondents have life insurance policy that is 65% have

considered that because they think if something happens to them, their family doesn’t have to

take any help for survival through others.

While researching I found that there are many consumers of LIC policy and most of them

have consume from 4 to 6 years before.

I found that the expectation of the consumer are mostly satisfied by the company because the

company gives best to their customers.

Documentation of any insurance policy takes the most time but here I found 55% of the

respondents agrees that it take less time while 10% doesn’t agree with it

There is not much difference between perception perceived by the company and the

expectation fulfillment of customers. we can say that company is successful in providing

customers value services as per the expectations of customers.

We can say that company is successful in providing customers value services as per the

expectations of customers. Only incase of issue of cheque company is unable to provide

satisfactory services to extent.

lic services is concerned with the life of various respondents they need to be made satisfied

for the purchase of services so the concerned professional are able to reach the expectation

level of various customers.

because of great technologies used in corporate world the time taken to get any service is

quiet easier as compare to past era.

people are concerned of their near and dear ones and family members they are always

interested to take up a various new policies concerned with their life’s so that they fell

insured and the risk of paying high amount during any mishap is almost reduced.



people are satisfied even for after sale services and they think of buying its various products

and services that’s why they would like to recommend its products to their friends and

relatives.

CH. – 6 SUGGESTION & CONCLUSION

SUGGESTION

Followings are some of the suggestion given by the customer of LIC for serve people in an

improved way.

People suggest that LIC should have increase their interest rate.



People suggest that LIC should have advertise its product with well known brand ambassador

in order to increase its sales.

People suggest that LIC should have provided a good services after sale of product or policy

of it.

SUGGESTIONS FOR IMPROVEMENT

Advertise about the company and its products – it motivates individuals to purchase

insurance

Create a positive perception about insurance.

Speak about the good features a plan offers like high returns, life cover, tax benefits,

indexation, accident cover while prospecting customers

Try to sell the product/plan which the consumer requires and not the plan where the

advisors benefit is higher

Improve the efficiency in operations

Bring out policies with small premiums payable for short periods of time – Rs. 5000 –

Rs. 10000 per annum for 10 years

Attract the youth of India with higher returns on investment as returns are the

motivating factor which influence purchase of insurance

Promote insurance in colleges and corporate houses

Should have partial withdrawals from the first year onwards

Tap the rural market where there is large potential

Diversify product portfolio

Make products more straight forward – reduce complexities



Conclusion

From the report I have concluded that most of the respondent have taken the policy of LIC but they still lacking in providing good service after sales

Investment in LIC is more preferable because it is government oriented and it is follow rules and regulation of IRDA.

ANNEXURE

QUESTIONNAIRE for customers

Respected Sir or Madam,

I am Tejani Gautam student of T.Y B.B.A from B. M. college of Business Administration

I am conducting a survey on PROJECT REPORT ON IMPACT OF SERVICE

QUALITY ON CUSTOMER LOYALTY. The purpose of this analysis is not professional

but it is a part of our study. Kindly give me your valuable support by providing needed data

& information in the following questions. Data & information given by you will be kept

strictly confidential & will be used for academic purpose only.



Yours sincerely,

Gautam Tejani

Questioner for customers

According to your opininon please give the rank to following question.

Ranking detail and code are given below:-

Detail CodeStrongly Disagree 01Disagree 02Average 03Agree 04Strongly Agree 05

Expectation

Expectation:- It shows the extent to which you think insurance company (Life) should posses following features;

Scores

Tangibles

Excellent Life Insurance Company will have modern equipment.

1 2 3 4 5

Materials associated with service (such as forms, payment, bandages etc...) will be visually appealing at an excellent company.

1 2 3 4 5



Average tangibility

Reliability


1 2 3 4 5

When customer has a problem, company will show sincere interest in solving it.

1 2 3 4 5

Excellent firms will perform the activity of issuing cheque of sum assured right the first time.

1 2 3 4 5

Life insurance company will provide the services at the time they promise to do so.

1 2 3 4 5

Excellent life insurance company will insist on error-free record.

1 2 3 4 5

Average Reliability

Responsiveness



Employees of excellent life insurance firms will tell the customers when services will be performed.

1 2 3 4 5

Employees of excellent life insurance firms will give prompt services to customers.

1 2 3 4 5

Employees of excellent life insurance firms will always be willing to help customer.

1 2 3 4 5

Employees of excellent life insurance firms will never be too busy to respond to customers’ requests.

1 2 3 4 5


Assurance

The behavior of employees in excellent life insurance firms will instill confidence in customers.

1 2 3 4 5

Insured customers of excellent life insurance firms will feel safe with insurance services.

1 2 3 4 5



Employees in excellent life insurance firms will be consistently courteous to customer.

1 2 3 4 5

Employees in excellent life insurance firms will have the knowledge to answer the customers’ questions.

1 2 3 4 5

Average Assurance

Empathy

Excellent company will give customers individual attentions.

1 2 3 4 5

Excellent company will have working hour convenient for all the customers

1 2 3 4 5

Excellent company will have employees who give customers personal attention.

1 2 3 4 5

Excellent company will have their customers’ best interest at heart.

1 2 3 4 5

The employees of excellent companies will understand the specific needs of their

1 2 3 4



customers. 5

Average Empathy

Perception

Perception:- It shows the extent to which you think-insurance company (life) should posses following features;

Scores

Tangibles

LIC has modern looking equipment 1 2 3 4 5

Materials associated with service (such as forms,-payment,-bandages etc...) will be visually appealing in LIC company.

1 2 3 4 5

Average tangibility

Reliability


1 2 3 4 5



When customers (you) have a problem, LIC company will show sincere interest in solving it.

1 2 3 4 5

LIC Company will perform the activity of issuing cheque of sum assured right the first time.

1 2 3 4 5

LIC Company will provide the services at the time it promises to do so.

1 2 3 4 5

LIC company will insist on error-free record. 1 2 3 4 5

Average Reliability

Responsiveness

Employees of LIC company will tell the customers when services will be performed.

1 2 3 4 5

Employees of LIC Company will give prompt services to customers.

1 2 3 4 5

Employees of LIC Company will always be willing to help customers.

1 2 3 4 5



Employees of LIC company will never be too busy to respond to customers’ requests.

1 2 3 4 5


Assurance

The behavior of employees in LIC company will instill confidence in customers.

1 2 3 4 5

Insured customers of LIC company will feel safe with insurance services.

1 2 3 4 5

Employees in LIC company will be consistently courteous to customers.

1 2 3 4 5

Employees in LIC company will have the knowledge to answer the customers’ questions.

1 2 3 4 5

Average Assurance

Empathy

LIC company will give individual attentions on customers.

1 2 3 4 5



LIC company will have working hour convenient for all its customers.

1 2 3 4 5

LIC company will have employees who give customers personal attention.

1 2 3 4 5

LIC company will have their customers’ best interest at heart.

1 2 3 4 5

The employees of LIC company will understand the specific needs of their customers.

1 2 3 4 5

Average Empathy



CUSTOMER LOYALTY QUESTIONERS

9) How long have you been the customer of this company?

1 to 2 yrs 2 to 4 yrs

4 to 6 yrs 6 to 10 yrs

10) I have received a proper demonstration on the product that you bought by the concerned professional.

Strongly agree5

Agree4

Average3

Disagree2

Strongly dis agree

1

11) The time is taken by LIC for documentation process is reasonable.

Strongly agree5

Agree4

Average3

Disagree2

Strongly dis agree

1

12) I like to purchase different policy from this company again.

Strongly agree5

Agree4

Average3

Disagree2

Strongly dis agree

1

13) I would like to recommend products of this company to my friends and relatives.



Strongly agree5

Agree4

Average3

Disagree2

Strongly dis agree

1

14) Suggestion

______________________________________________________________________________________________________________________________________________________

Bibliography

http://www.wisegeek.com/what-is-customer-loyalty.htm[customer loyalty http://www.allbusiness.com/sales/customer-service/1961-1.html[customerloyalty

http://www.customerloyalty.org/

http://www.allbusiness.com/company-activities-management/operations-customer/10207054-1.html http://www.12manage.com/methods_zeithaml_servqual.html

http://www.licindia.in/history.htm[history]

http://info.shine.com/company/Life-Insurance-Corporation-of-India/348.aspx [profile]

Production management book: kanishka bedi


http://info.shine.com/company/Life-Insurance-Corporation-of-India/348.aspx

http://www.licindia.in/history.htm

http://www.12manage.com/methods_zeithaml_servqual.html

http://www.allbusiness.com/company-activities-management/operations-customer/10207054-1.html

http://www.allbusiness.com/company-activities-management/operations-customer/10207054-1.html

http://www.customerloyalty.org/

http://www.allbusiness.com/sales/customer-service/1961-1.html%5Bcustomerloyalty

http://www.wisegeek.com/what-is-customer-loyalty.htm%5Bcustomer

pproject final

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