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Sections

  • PROJECT REPORT
  • ON
  • LIFE INSURANCE IN INDIA
  • What Is Life Insurance?
  • INSURANCE IN INDIA:-
  • History of Insurance in India
  • Some of the important milestones in the life insurance business in India are:
  • PRESENT SCENARIO - LIFE INSURANCE INDUSTRY IN INDIA
  • Related Acts:-
  • The Insurance Act, 1938
  • Life Insurance Corporation Act, 1956
  • General Insurance Business (Nationalization) Act, 1972
  • INTRODUCTION OF SOME LIFE INSURERS
  • BIRLA SUN LIFE
  • BAJAJ ALLIANZ
  • TATA AIG
  • ICICI PRUDENTIAL
  • AVIVA LIFE INSURANCE
  • ETOP Analysis of the Indian Insurance Industry
  • CHAPTER 2 :- INTRODUCTION OF THE COMPANY
  • BOARD OF DIRECTORS
  • Life Insurance Corporation of India (LIC)
  • MISSION/VISION
  • Mission
  • Vision
  • Products of LIC
  • 1. LIC - Jeevan Anurag
  • 2. LIC - Jeewan Kisore
  • Commencement of risk cover:
  • Premiums:
  • 3. LIC ± Childs Career Plan
  • Introduction:
  • Options:
  • Payment of Premiums:
  • 4. LIC - Jeevan Chhaya
  • 5. LIC - Child Future Plan
  • Options:
  • 6. LIC ± Jeevan Shree
  • Product summary:
  • Guaranteed Additions:
  • OBJECTIVES OF LIC
  • RESTRICTIVE CONDITIONS
  • S.W.O.T. ANALYSIS
  • STRENGTHS
  • WEEKNESS
  • OPPORTUNITIES
  • THREATS
  • Market Share
  • NAME OF THE PLAYER MARKET SHARE (%)
  • MARKET SHARE ANALYSIS Percentage
  • CHAPTER 3:-THEORETICAL ASPECTS OF THE STUDY
  • Definition of service quality
  • y TANGIBLES:-
  • y ABILITY
  • y RESPONSIVENESS
  • y ASSURANCE
  • y EMPATHY
  • 10. Make it easy to buy
  • What is customer loyalty?
  • 10. Know Their Names
  • Relationship Between Service quality and Customer Loyalty
  • CHAPTER 4:-RESEARCH OF THE STUDY
  • Definition:-
  • OBJECTIVE OF STUDY
  • Scope as the Study
  • LIMITATION OF STUDY
  • RESEARCH COMPONENTS:-
  • 4.1 Research design:-
  • Choice of the research design:-
  • 4.2 DATA COLLECTION METHODS:-
  • TYPE OF DATA COLLECTED
  • PRIMARY SOURCES
  • SECONDARY SOURCES
  • SAMPLING
  • SAMPLE SIZE
  • Interpretation:-
  • CH. ± 6 SUGGESTION & CONCLUSION
  • SUGGESTION
  • SUGGESTIONS FOR IMPROVEMENT
  • Conclusion
  • ANNEXURE
  • QUESTIONNAIRE for customers
  • Respected Sir or Madam,
  • I am conducting a survey on PROJECT REPORT ON IMPACT OF SERVICE

Impact of service quality on customer loy alty

PROJECT REPORT ON Impact of Service Quality on Customer Loyalty in LIC

B. M. COLLEGE OF BUSINESS ADMINISTRATION

Page 1

Impact of service quality on customer loy alty
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:
y y y

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.

y

LIC moves towards better customer relations Page 2

B. M. COLLEGE OF BUSINESS ADMINISTRATION

Impact of service quality on customer loy alty

y

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.

B. M. COLLEGE OF BUSINESS ADMINISTRATION

Page 3

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. COLLEGE OF BUSINESS ADMINISTRATION Page 4 . B. the largest life insurance company in India is still owned by the government.[1]. of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%.5% of the country's GDP while general insurance premiums to 0. Currently.65% of India's GDP. The Insurance sector in India has gone through a number of phases and changes. 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.Impact of service quality on customer loy alty INSURANCE IN INDIA:- Insurance is a federal subject in India and has a history dating back to 1818. M. particularly in the recent years when the Govt.

Bombay Mutual Life Assurance Society.Impact of service quality on customer loy alty History of Insurance in India Insurance in India has its history dating back till 1818. 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. GIC had four subsidiary companies. Pre-independent era in India saw discrimination among the life of foreigners and Indians with higher premiums being charged for the latter. when Oriental Life Insurance Company was started by Europeans in Kolkata to cater to the needs of European community. which was founded in 1906 and is doing business even today. COLLEGE OF BUSINESS ADMINISTRATION Page 5 . In the year 1912. The Life Insurance Companies Act. these subsidiaries have been de-linked from parent company and made as independent insurance companies: Oriental Insurance Company B. General Insurance Corporation of India (GIC). insurance companies started mushrooming up. It was only in the year 1870. The Insurance industry earlier consisted of only two state insurers: Life Insurers i. and the Provident Fund Act were passed to regulate the insurance business. At the dawn of the twentieth century. the disparage still existed as discrimination between Indian and foreign companies. the first Indian insurance company covered Indian lives at normal rates. With effect from December 2000.e.e. Life Insurance Corporation of India (LIC) and General Insurers i. However. the Life Insurance Companies Act. The oldest existing insurance company in India is National Insurance Company Ltd. M.

PRESENT SCENARIO . COLLEGE OF BUSINESS ADMINISTRATION Page 6 . 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. M. The list of Life insurance companies is as follow: B.Impact of service quality on customer loy alty Limited. the first Indian life insurance company started its business. get details on his/her policies. the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society.LIFE INSURANCE INDUSTRY IN INDIA At Present 16 life insurance companies are operating in India. and change the resident address when he/she shifts to a new place and even take a printout of the income tax certificate. Out of 16 companies 15 are private players and one i. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. New India Assurance Company Limited. The portal is likely to be ready in a month¶s time. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. Life Insurance corporation of India is in Public sector holding major portion of Life insurance market share in India.e. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company.

B. Birla Sun Life Insurance Co. Ltd. 9. 13 14 Sahara India Life Insurance Co. Ltd 5. India Pvt. Ltd. Ltd 11. Kotak Mahindra Old Mutual Life Insurance Limited 10. Bajaj Allianz Life Insurance Company Limited. Ltd 4.Impact of service quality on customer loy alty S. ICICI Prudential Life Insurance Co. 2. Ltd. M. Life Insurance Corporation of India 7. Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited. HDFC Standard Life Insurance Co. Ltd. 6.No NAME OF THE COMPANY 1. Max New York Life Insurance Co. 15 Shriram Life Insurance Co. ING Vysya Life Insurance Company Ltd. COLLEGE OF BUSINESS ADMINISTRATION Page 7 . Met Life India Insurance Company Pvt. SBI Life Insurance Co. Ltd 8. Ltd 3. 12 Aviva Life Insurance Co.

Impact of service quality on customer loy alty 16 Bharti AXA Life Insurance Company Ltd. M. COLLEGE OF BUSINESS ADMINISTRATION Page 8 . B.

9. 1938. 1972 was enacted to nationalize the 100 odd general insurance companies and subsequently merging them into four companies.1956 was enacted in the same year to. with the first one being the Insurance Act. inter-alia. COLLEGE OF BUSINESS ADMINISTRATION Page 9 . The Life Insurance Corporation of India was created on 1 September. The Insurance Act. that life insurance in India was completely nationalized. it was only in 19 January 1956.Impact of service quality on customer loy alty 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. All the companies were amalgamated into National Insurance. through a Government ordinance.[2] General Insurance Business (Nationalization) Act. Nationalization was accomplished by the govt. 1972 The General Insurance Business (Nationalization) Act. M. 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. 1956. Life Insurance Corporation Act. There were 245 insurance companies of both Indian and foreign origin in 1956. New India Assurance. acquisition of the management of the companies. Oriental Insurance. 1956 effective from 1. the Life Insurance Corporation Act. as a result and has grown to be the largest insurance company in India as of 2006.[3] B. 1938 The Insurance Act. 1956 Even though the first legislation was enacted in 1938. form LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one entity. and United India Insurance which were headquartered in each of the four metropolitan cities.

It is leading by 78 crores. Together they are committed to offering you financial solutions that provide all the security you need for your family and yourself. offers a formidable protection for your future. 2500 per day in case of hospitalization and Rs. Charges are relatively low compared to HDFC Standard for some policies. Annual premium is much less (about Rs. BIRLA SUN LIFE Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group.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. Your family can continue to enjoy their current lifestyle even in the case of something happening to you. (Source: www. Bajaj Allianz is the number one private life insurer for the year 2005 ± 2006. a leading international financial services organization. The company offers high coverage plans at low cost. 6712) to avail such a good benefit. COLLEGE OF BUSINESS ADMINISTRATION Page 10 . The only earning member is the father. TATA AIG Tata Aig is a joint venture between the Tata group and American International Group Inc. a trusted automobile manufacturer for over 55 years in the Indian market. there is a family of four..Impact of service quality on customer loy alty INTRODUCTION OF SOME LIFE INSURERS. For example. In one of the plans the company offers hospital cash benefit wherein it will pay Rs. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc. There is a plan even for a policy term of 1 year. It has experienced a whopping growth of 216% in the last financial year. M.birlasunlife. These plans are very flexible and HDFC Standard could adopt this idea of insuring individuals for short periods of time. one of the largest business houses in India and Sun Life Financial Inc..5 lakhs in case the person suffers from any critical illness.12. B.

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 premium will be returned to investors. The company has an investment plan which is market related ± Invest Shield Life.50. With a strong sales force of over 27. working from 140 branches located in 74 major cities across the country and over 3. M.Impact of service quality on customer loy alty ICICI PRUDENTIAL ICICI Prudential is a stiff competitor for HDFC Standard. the FHC assesses and recommends the right insurance product for them. It also distributes products in close cooperation with the ING Vysya Bank network.000 people.000 employees. It is a guaranteed plan which ensures the company carefully invests your money. Aviva has initiated an innovative and differentiated sales approach to the business.000 Financial Planning Advisers (FPAs). 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.000 & is headquartered at Bangalore. In this plan even if the market falls. B. COLLEGE OF BUSINESS ADMINISTRATION Page 11 . ING Vysya Life Insurance It has a dedicated and committed advisor sales force of over 21. 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. Through the ³Financial Health Check´ (FHC) Aviva¶s sales force has been able to establish its credibility in the market. The Company has a customer base of over 4.

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 non-ULIP policies. COLLEGE OF BUSINESS ADMINISTRATION Page 12 . 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. ETOP Analysis of the Indian Insurance Industry. It can be prepared in the following way: B. This facility is available for all Credit card payments are not accepted under this payment facility. M.Impact of service quality on customer loy alty You can pay LIC premiums using Net Banking accounts with any of the following banks:y y y y y y y y y y y y y y y y y y y y y y y y y y y y y y 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 .

Oriental Life Insurance Company stated by Europeans in Calcutta was the first life insurance B. Political & Legal (+) They restrict foreign Insurance sector to develop their business in India Opportunity Social (+) Change in life style pattern in terms of savings Opportunity and investments.Impact of service quality on customer loy alty Environmental Factors Environmental Analysis Effect Economic (+) The Insurance industry is growing at the rate of 40 per cent per annum. CHAPTER 2 :. giving both cost and service Advantages. COLLEGE OF BUSINESS ADMINISTRATION Page 13 . in providing terms of technology Implementation Industries. (Average). (+) Insurance Industry score over the Other service Opportunity providers. Opportunity Threats Technological (+) With the passage of time the Insurance industry is Opportunity expanding through technological aspects like Online Premium & Selling of Insurance Online. (+) Multinational Insurance Companies are now Opportunity looking to enter into India and trying to share their culture with us. M. (-) The global downturn has affected the Insurance Industry in a very bad manner.INTRODUCTION OF THE COMPANY History Life Insurance in its modern form came to India from England in the year 1818.

and the Provident Fund Act were passed. 298 crore in 1938. 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. From 44 companies with total businessin force as Rs. it rose to 176 companies with total business-in-force as Rs. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being changed on them. insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. in Calcutta.Impact of service quality on customer loy alty company on Indian Soil. But the act discriminated between foreign and Indian companies on many accounts. house of the great poet Rabindranath Tagore. 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. The Life Insurance Companies Act. 22. 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 B. the foreign life insurance companies started insuring Indian lives. 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. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. M. The first two decades of the twentieth century saw lot of growth in insurance business. The United India in Madras. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably.44 crore. India had no legislation to regulate insurance business. COLLEGE OF BUSINESS ADMINISTRATION Page 14 . In the year 1912. However. later with the efforts of eminent people like Babu Muttylal Seal. 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 Life Insurance Companies Act. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870. putting the Indian companies at a disadvantage. and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives. General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912. The Indian Mercantile.

About 154 Indian insurance companies. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. 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. With a vision of providing easy access to its policyholders. and later. Kolkata. 100 divisional offices. 33 divisional offices and 212 branch offices. LIC has launched its SATELLITE SAMPARK offices. Chennai. Today LIC functions with 2048 fully computerized branch offices. The satellite offices are smaller. Apart from on-line Kiosks and IVRS. However. New Delhi. COLLEGE OF BUSINESS ADMINISTRATION Page 15 . Pune and many other cities. the ownership too by means of a comprehensive bill. Ahmedabad. that life insurance in India was nationalized. LIC¶s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. M. 1956. nationalization was accomplished in two stages. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. Hyderabad.Impact of service quality on customer loy alty Assembly. LIC¶s ECS and ATM premium payment facility is an addition to customer convenience. providing them adequate financial cover at reasonable cost. 7 zonal offices and the corporate office. and the Life Insurance Corporation of India was created on 1st September. initially the management of the companies was taken over by means of an Ordinance. Info Centers have been commissioned at Mumbai. LIC had 5 zonal offices. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956. Bangalore. 1956. leaner and closer to the customer. COMPANY PROFILE B. it was much later on the 19th of January. apart From its corporate office in the year 1956. 16 non-Indian companies and 75 provident were operating in India at the time of nationalization.

 Website: http://www. Thomas Mathew T.000  Parent: NIL  Subsidiaries: LIC Housing Finance Limited. 1956  Headquarters: Headquarters in Mumbai. India (Various other locations in India and abroad)  Key people: T.com BOARD OF DIRECTORS Members On The Board Of The Corporation Shri. K. S. Vijayan (Chairman) Shri.K. (Managing Director . Mehta and Thomas Mathew (Managing Directors)  Industry: Life insurance  Products: Insurance and Pension Plans  Employees: Over 10. etc. COLLEGE OF BUSINESS ADMINISTRATION Page 16 . D. D.Impact of service quality on customer loy alty  Type: Public limited company or Government-owned corporation Founded: September 1. T. Mehrotra (Managing Director .S.LIC) B.LIC) Shri.licindia. M. 00. Vijayan (Chairman).

R. Ministry of Finance.Impact of service quality on customer loy alty Shri. Rawal (Chairman & Managing Director .L. GIC of India) Shri D. of India. A. Sooranad Rajashekhran Shri.) B.LIC) Shri. Yogesh Lohiya (Chairman cum Managing Director. Monis R. Dena Bank) Dr. Kidwai Lt. Gopalan (Secretary. COLLEGE OF BUSINESS ADMINISTRATION Page 17 . M. Govt. Govt. Ashok Chawla (Finance Secretary. Dasgupta (Managing Director . Department of Financial Services. General Arvind Mahajan ( Retd. Ministry of Finance.K.) Shri. of India) Shri.

and is said to be the largest life insurance company and also the largest investor of the country. It also aims at promoting the people for saving their money. 1956.´ Vision ³A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. and offers attractive savings features along with various insurance policies. Oriental Life Insurance Company stated by Europeans in Calcutta was the first life insurance company on Indian Soil. The corporation is aimed at providing life insurance services primarily to the rural masses and the socially & economically backward sections of the Indian society. M. after the Life Insurance Corporation Act has been passed by the Parliament of India in the same year. COLLEGE OF BUSINESS ADMINISTRATION Page 18 .´ LIC of India is the one and only public sector life insurance Company in India. and by rendering resources for economic development. MISSION/VISION Mission ³Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns. B. LIC had been established on the 1st of September. 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. Life Insurance in its modern form came to India from England in the year 1818.Impact of service quality on customer loy alty Life Insurance Corporation of India (LIC) Life Insurance Corporation of India (LIC) is a Government of India enterprise.

if term of the policy is 20 years. B. For example. In addition. M. 20% of the Sum assured will be payable the end of the 17th.  Death Benefit Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured.  Assured Benefit Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity. 18th. 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. At maturity. COLLEGE OF BUSINESS ADMINISTRATION Page 19 . at the end of the 20th year. if any. 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. 19th year and 40% of the Sum Assured along with the reversionary onuses and the terminal bonus.Jeevan Anurag  Benefits LIC¶s Jeevan ANURAG is a with profits plan specifically designed to take care of the educational needs of children. if any shall be payable. 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. LIC .Impact of service quality on customer loy alty Products of LIC 1.

half-yearly. COLLEGE OF BUSINESS ADMINISTRATION Page 20 . they form part of the guaranteed benefits of the plan.Impact of service quality on customer loy alty 2. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.Jeewan Kisore  Product summary: This is an Endowment Assurance Plan available for children of less than 12 years of age. B.  Premiums: Premiums are payable yearly. M. whichever is later. Once declared.  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. It gets a share of the profits in the form of bonuses. quarterly or monthly throughout the term of the policy or till earlier death of child. A Final (Additional) Bonus may also be payable provided policy has run for certain minimum period. The policy may be purchased by any of the parent/grand parent.  Bonuses: This is a with-profits plan and participates in the profits of the Corporation¶s life insurance business. LIC .

Premiums may be paid either for 6 years or up to 5 years before the policy term. quarterly or through Salary deductions over the term of policy.  Payment of Premiums: You may pay the premiums regularly at yearly. LIC ± Childs Career Plan  Introduction: This plan is specially designed to meet the increasing educational and other needs of growing children. Maturity Age. A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations. COLLEGE OF BUSINESS ADMINISTRATION Page 21 . Mode of Premium payment and Premium Waiver Benefit. M.  Options: You may choose Sum Assured (S. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e.A. half-yearly. Policy Term.).Impact of service quality on customer loy alty 3. 7 years after the expiry of policy term). B.

LIC . B.Jeevan Chhaya  Product summary: This is an Endowment Assurance plan that provides financial protection against death throughout the term of the plan.  Options: You may choose Sum Assured (S. Policy Term. half-yearly.  Premiums: Premiums are payable yearly. Premiums may be paid either for 6 years or up to 5 years before the policy term.A. 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. M. marriage and other needs of growing children. Besides payment of Sum Assured immediately on death. quarterly or through Salary deductions over the term of policy. quarterly. Maturity Age.e. A number of survival benefits ae payable on surviving by the life assured to the end of the specified Durations. LIC . monthly or through salary deductions as opted by you throughout the term of the policy or till the earlier death. half-yearly. Mode of Premium payment and Premium Waiver Benefit.  Payment of Premiums: You may pay the premiums regularly at yearly. 7 years after the expiry of policy term).Impact of service quality on customer loy alty 4.Child Future Plan  Introduction: This plan is specially designed to meet the increasing educational. It provides the risk cover on the life of child not only during the policy term us also during the extended term (i.). COLLEGE OF BUSINESS ADMINISTRATION Page 22 . 5.

COLLEGE OF BUSINESS ADMINISTRATION Page 23 . 50/. as opted by you. half-yearly.  Premiums: Premiums are payable yearly. M. 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. quarterly.Impact of service quality on customer loy alty 6. throughout the premium paying term or till earlier death.per thousand Sum Assured for each completed year for first five years of the policy.  Guaranteed Additions: The policy provides for the Guaranteed Additions at the rate of Rs. monthly or through Salary deductions. Alternatively premium may be paid in one lump sum. B.

 Bear in mind.Impact of service quality on customer loy alty 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. keeping in view national priorities and obligations of attractive return. M.  Conduct business with utmost economy and with the full realization that moneys belong to the policyholders. the funds to be deployed to the best advantage of the investors as well as the community as a whole.  Maximize mobilization of people¶ savings by making insurance-linked savings adequately attractive. the primary obligation to its policyholders.  Act as trustees of the insured public in their individual and collective capacities. whose money it holds in trust.  Meet the various life insurance needs of the community that would arise in the changing social and economic environment. COLLEGE OF BUSINESS ADMINISTRATION Page 24 . in the investment of funds.  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. without losing sight of the interest of the community as a whole. B.

000/: No Upper Limit (Policies will be issued in multiples of Rs.25.100. Half-yearly & Single Premium B.00.000/ .for Sums Assured more than the minimum Sum Assured) y Mode of premium payment : Yearly. COLLEGE OF BUSINESS ADMINISTRATION Page 25 .Impact of service quality on customer loy alty RESTRICTIVE CONDITIONS y y y y y y y y Minimum age at entry Maximum age at entry Maximum age at maturity Minimum Policy Term Maximum Policy term Minimum Sum Assured Maximum Sum Assured :18 years (completed) :60 years (nearest birthday) :70 years (nearest birthday) :5 years :35 years :Rs. M.

Impact of service quality on customer loy alty AWARDS AND ACHEIVEMENT: CNBC Awaaz Consumer awards 2010 Reader 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 . M. COLLEGE OF BUSINESS ADMINISTRATION Page 26 . 2009 Award for INNOVATIVE HR PRACTICES B.2009 ASIA PACIFIC HRM Congress.

2008 B.Impact of service quality on customer loy alty Loyalty Award ± 2009 NDTV 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 . M. COLLEGE OF BUSINESS ADMINISTRATION Page 27 .

W. Products cost are very low. Long-term plans of LIC are the main strength. After sales services.T. STRENGTHS y y y y y LIC is on 1st rank among the Insurance player. M. Customer does not believe on private company.O. and upcoming future and prospective of the company. analysis of LIC has also been conducted to know better about the position. y 1/2nd.W.T.% insurance has been covered. THREATS y y There are many competitors In the market. COLLEGE OF BUSINESS ADMINISTRATION Page 28 .O. growth. Entry of Private Insurance banks. ANALYSIS A proper S. B. WEEKNESS y Low interest rate is the weakness of the LIC company OPPORTUNITIES y Good brand promotion.Impact of service quality on customer loy alty S.

00% 6. M.00% 1.01% B.36% 4.00% 1.55% 1. COLLEGE OF BUSINESS ADMINISTRATION Page 29 .20% 2.88% 2.50% 2.Impact of service quality on customer loy alty Market Share NAME OF THE PLAYER MARKET SHARE (%) MARKET SHARE ANALYSIS Life Insurance Corporation of India ICICI Prudential Life Insurance Co Ltd Bajaj Allianz Life Insurance Co Ltd SBI Life Insurance Co Ltd Reliance Life Insurance Co Ltd HDFC Standard Life Insurance Co Ltd Birla Sun Life Insurance Co Ltd Max New York Life Insurance Co Ltd Kotak Mahindra Old Mutual Life Insurance Ltd Aviva Life Insurance Company India Ltd Others Percentage 67% 9.50% 2.

00% 1.01% Life Insurance Corporation of India ICICI Prudential Life Insurance Co Ltd Bajaj Allianz Life Insurance Co Ltd SBI Life Insurance Co Ltd Reliance Life Insurance Co Ltd 2.50% 4.20% 2.00% 67% HDFC Standard Life Insurance Co Ltd Birla Sun Life Insurance Co Ltd Max New York Life Insurance Co Ltd Kotak Mahindra Old Mutual Life Insurance Ltd Aviva Life Insurance Company India Ltd B M C OF B INESS ADMINISTRATION Page 30 .36% 9.00% 2.88% 1.55% 2.Impact ice qualit on customer loyalty MARKET SHARE ANALYSIS 1.50% 6.

and communication materials y ABILITY Ability to perform the promised service dependably and accurately y RESPONSIVENESS Willingness to help customers and provide prompt service y ASSURANCE Knowledge and courtesy of employees and their ability to convey trust and confidence y EMPATHY Caring. is more inclusive: it is influenced by perceptions of service quality.Impact of service quality on customer loy alty 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. Satisfaction. product quality. assurance. Providing it isn¶t as difficult if you and your employees achieve these 10 basic rules: B. Empathy. The five service dimensions are: y TANGIBLES:Appearance of physical facilities. responsiveness. equipment. and price as well as situational factors and personal factors. tangibles. personnel. individualized attention the firm provides its customers Strong customer service is a business essential. on other hand. COLLEGE OF BUSINESS ADMINISTRATION Page 31 . M.

Treat people with courtesy and respect. Talk to customers about their experience with the company. In this way. However. 3. Always try to go above and beyond customer expectations. B. they do not focus on the missteps of a particular situation. phone. They can try to learn everything about the customers in order to tailor their service approach to customers¶ needs and buying habits. Knowledge about products. Use conciliatory phrases ² "Sorry to keep you waiting. instead. This interaction leaves an impression with that customer. Never argue with a customer. They know very well that the customer isn¶t always right. written correspondence. Know your customers. In LIC of India Everyone devoted to creating a positive experience for the customer. and return policies inside and out. 5. 2." "You¶re welcome. Also try to anticipate the types of questions that customers will ask. or a face-to-face meeting. concentrate on how to fix it." and "It¶s been a pleasure helping you" etc. They know their company¶s products. Anyone can easily Update and amend their FAQ page frequently. Commit to quality service. Employee or the agents of the LIC of India always treat or react with respect to their customers. 4. Convey an articulate and in-depth knowledge of products and services to win customer trust and confidence. and listen their complaints. Whether it¶s by email." "Thanks for your order. COLLEGE OF BUSINESS ADMINISTRATION Page 32 . Research shows that 7 out of 10 customers will do business with a company again if that business resolves a complaint in their favor. services.Impact of service quality on customer loy alty 1. M. they can get to the root of customer dissatisfaction.

Moreover. Research shows that it costs six times more to attract a new customer than it does to keep an existing one.Impact of service quality on customer loy alty 6. M. Assume that customers tell the truth. Don¶t leave customers in limbo. Salespeople. Even though it may appear that customers lie to manipulate a situation to their advantage. 7. in fact. They know very well that if they fail to do this than they will lose both credibility and customers. B. sometimes focus on the volume instead of on the quality of the sale. callbacks. Focus on making customers not on sales. Always provide what you promise. especially those who get paid on commission. they quote out in a day or less. happy customers are the best and most effective way to find new customers. The majority of customers don¶t like to complain. If they hear unhappy rumblings from their customers. But an agent or employee of LIC give more important to customer¶s business is more than to close a sale. They know Customers want immediate resolution. apologize to the customer and offer some type of compensation. 8. LIC agents or employee Repairs. they will probably win their repeat business. take their complaints to heart and do their best to appease their dissatisfaction. If they guarantee a quote within 24 hours. 9. when they neglect to make good on their promise. Research shows that the instance of repeat business goes up to 95 percent when complaints are resolved on the spot. and if they can give it to them. such as a discount or free delivery. and emails handled with a sense of urgency. they will go out of their way ² perhaps all the way to a competitor ² to avoid it. they hope that it is their advantage to give them the benefit of the doubt. COLLEGE OF BUSINESS ADMINISTRATION Page 33 .

Impact of service quality on customer loy alty

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.

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Impact of service quality on customer loy alty
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.

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Impact of service quality on customer loy alty

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.

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& Zeithaml. B. Staelin. Cronin & Taylor. COLLEGE OF BUSINESS ADMINISTRATION Page 37 . Kalra. 1992). (1993) found positive relationships between service quality and repurchase intentions and willingness to recommend. 1993. M. whereas Boulding et al. (1993) focused on the elements of repurchasing as well as the willingness to recommend.Impact of service quality on customer loy alty Relationship Between Service quality and Customer Loyalty In various studies the relationship between service quality and customer preference loyalty had been examined (Boulding. In their study Cronin and Taylor (1992) focused solely on repurchase intentions. 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.

³Research is careful inquiry or examination to discover new information or relationships and to existing knowledge.  To know which type of payment they prefer while purchasing Policy of LIC.  Consumer attitude towards the Policy of LIC. B. COLLEGE OF BUSINESS ADMINISTRATION Page 38 .Francis Rammel. M.  To know which criteria consumer take in to consideration while purchasing Policy of LIC. 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.´ Fred Kerlinger.  Assessing the main criteria to make product of LIC more marketable.´ .Impact of service quality on customer loy alty CHAPTER 4:-RESEARCH OF THE STUDY Definition:³Research is an organized inquiry designed and carried out to provide information for solving problems. OBJECTIVE OF STUDY The main objective of this study is to study the consumer buying behavior regarding cars.

Different forms of collecting the data will be tasted in the research design. Also it will help to solve the problem.  Some respondent may not give proper response than it is totally useless. and the detail information is collected related to the study. The respondents are visited personally. Research design explains the methods that are used for collecting the information. M. Choice of the research design:A research design specifies the methods and procedure for conducting a particular study. RESEARCH COMPONENTS:- 4.  The limit for the project is only 2 months. The research design will focus attention on the different methods that are used for collection of the data. COLLEGE OF BUSINESS ADMINISTRATION Page 39 . The question mainly focuses attention on the consumer behavior to fulfill the objective of the study.1 Research design:Research design is the plan for collecting the information related to the study. Broadly the research can be grouped in to three categories. In this case. survey method is used to collect the necessary data in the survey method.Impact of service quality on customer loy alty LIMITATION OF STUDY There are number of limitations but from them few are as below. and questionnaires are used.  Exploratory research  Descriptive research  Casual research B. the personal interview is used to collect the information from the respondents.  The study is not cover whole population it is limited by the company only for east zone of Surat city.

product brochures. Causal Research Design: . COLLEGE OF BUSINESS ADMINISTRATION Page 40 .The major emphasis in exploratory Research Design is on discovery of ideas and insights. SECONDARY SOURCES These include books. Sampling unit B. PRIMARY SOURCES These include the survey or questionnaire method. They are primary and secondary data. telephonic interview as well as the personal interview methods of data collection. competitor¶s websites etc.2 DATA COLLECTION METHODS:TYPE OF DATA COLLECTED There are two types of data used. I have used descriptive research method to collect necessary information related to the study. 3. 4.Impact of service quality on customer loy alty 1. In my study. newspaper articles etc.A Causal Research Design is concerned with determining cause and effect relationship. Exploratory Research Design: . company brochures. 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. the company website. 2. the internet. Secondary data is data collected from indirect sources. M. Primary data is defined as data that is collected from original sources for a specific purpose.

without incurring the cost or time required to select a random sample.com) SAMPLE SIZE The sample size for the survey conducted was 50 respondents. the sample is selected because they are convenient. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. amroli.statpac. COLLEGE OF BUSINESS ADMINISTRATION Page 41 . This non probability method is often used during preliminary research efforts to get a gross estimate of the results. M. Conducted I have covered different areas under my study. SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. Different areas like kamrej.Impact of service quality on customer loy alty In my study the market survey was conducted in surat city. (Source: www. varachha & other areas of the city are covered by me during the study. B. A sample is a representative of the universe selected for study. As the name implies.

Q 2) which type of insurance do you have? B. COLLEGE OF BUSINESS ADMINISTRATION Page 42 . ± 5 DATA ANALYSIS AND FINDINGS Q 1) Do you have Product of LIC? Particular Yes No Number 90 10 Percentage 90% 10% Interpretation:From the above chart we can say that 90% customer have product of LIC and 10% customer have product of other companies. M. 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.Impact of service quality on customer loy alty CH.

Impact of service quality on customer loyalty Particular Mediclaime Life Insurance Ot ers Number 30 65 5 Percentage 30% 65% 5% 5% 30% Lif Insuran 65% Oth rs Interpretati n:From t e 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 . B M COLLEGE OF B SINESS ADMINISTRATION £¤ ¡ Page 43 £ £ ¢ ¡  di laim . people are ready or prepared in advance for competing immediate circumstances which will arise in their future life.

.) will be visually appealing at an excellent company. 1 2 3 4 5 Average Tangibility B.-bandages etc. Tangibles LIC has modern looking equipment 1 2 Scores 3 4 5 Materials associated with service (such as forms.. 1 2 3 4 5 Average Tangibility Perception:..It shows the extent to which you think-insurance company (life) should posses following features. payment. bandages etc. Tangi les Excellent Life Insurance Company will have modern equipment.-payment. M.. COLLEGE OF B SINESS ADMINISTRATION Page 44 .) will be visually appealing in LIC company. 1 2 3 4 5 Scores Materials associated with service (such as forms.It shows the extent to which you think insurance company (Li e) shoul posses following features.Impact of service quality on customer loyalty Q 3) E pectati n:.

B.4 24.Impact of service quality on customer loyalty 24. company is successful in providing customers value services as per the expectatios of n customers.27 0 AVERAGE EXPECTATION -5 AVERAGE PERCEPTION -0. 7 24.47 24.27 Page 45 .6 25 20 15 MODERN EQUIPMENT 10 5 0.07 0.07 DIFFERENCE MODERN EQUIPMENT MATERIAL AVERAGE EXPECTATION 24.87 DIFFERENCE -0.47 24. M. COLLEGE OF B SINESS ADMINISTRATION ¥ MATERIAL AVERAGE PERCEPTION 24.6 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 .4 24.

When customer has a problem.Impact of service quality on customer loyalty Q 4) Expectation When companies do something by a certain time. LIC Company will perform the activity of issuing cheque of sum assured right the first time. company will show sincere interest in solving it. Reliability 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Average Reliability Perception When companies do something by a certain time. COLLEGE OF BUSINESS ADMINISTRATION Page 46 . Reliability 1 2 3 4 5 When customers (you) have a problem. they do. LIC company will show sincere interest in solving it. they do. LIC Company will provide the services at the time it promises to do so. LIC company will insist on error-free record. M. Life insurance company will provide the services at the time they promise to do so. Excellent firms will perform the activity of issuing cheque of sum assured right the first time. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Average Reliability B. Excellent life insurance company will insist on error-free record.

93 27.Impact of service quality on customer loyalty 30 25 20 15 AVERAGE . M. COLLEGE OF BUSINESS ADMINISTRATION ¦ Time punctualit Problem solution issue of cheque fulfillment of promise error free record AVERAGE AVERAGE DIFFERE CE perception Expectation 25.07 26. we can say that company is successful in providing customers value services as per the expectations of B.33 25.2 26 25.4 -0.87 23.07 -1.perception AVERAGE .6 25.53 26.87 26.27 -3.Expectation 10 DIFFERENCE 5 0 -5 Time punctuality Problem solution issue of cheque fulfillment of promise error free record 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.13 0.04 Page 47 .93 -0.

Employees of LIC Company will give prompt services to customers. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Average Responsiveness Responsiveness Employees of LIC company will tell the customers when services will be performed. Only incase of issue of cheque company is unable to provide satisfactory services to extent. Q. Employees of excellent life insurance firms will always be willing to help customer.5) Expectation Responsiveness 1 2 3 4 5 Employees of excellent life insurance firms will tell the customers when services will be performed.Impact of service quality on customer loyalty customers. Employees of LIC company will never be too busy to respond to customers¶ requests. Employees of excellent life insurance firms will never be too busy to respond to customers¶ requests. Employees of LIC Company will always be willing to help customers. COLLEGE OF BUSINESS ADMINISTRATION Page 48 . Employees of excellent life insurance firms will give prompt services to customers. M. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Average Responsiveness B.

13 23. M.8 25.Impact of service quality on customer loyalty 30 25 20 15 AVERAGE EXPECTATION AVERAGE PERCEPTION 10 DIFFERENCE 5 0 -5 EMPLOYEES INFORMED TO CUSTOMERS EMPLOYEES GIVE PROMPT SERVICES EMPLOYES WILLING TO HELP CUSTOMER EMPLOYEES NEVER TO BUSY TO RESPOND EMPLOYEES INFORMED TO CUSTOMERS EMPLOYEES GIVE PROMPT SERVICES EMPLOYES WILLING TO HELP CUSTOMER EMPLOYEES NEVER TO BUSY TO RESPOND AVERAGE EXPECTATION 22. B.5 -2. COLLEGE OF BUSINESS ADMINISTRATION Page 49 .93 22.4 DIFFERENCE 0.87 29.93 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 organi ed enough to help the customers and solve their quarries 24/7 and are not able to provide them a value services.53 29.4 AVERAGE PERCEPTION 23.26 5.6 29.

M. Assurance 1 2 3 4 5 Insured customers of LIC company will feel safe with insurance services. Employees in LIC company will have the knowledge to answer the customers¶ questions. Employees in excellent life insurance firms will have the knowledge to answer the customers¶ questions. Insured customers of excellent life insurance firms will feel safe with insurance services. Employees in excellent life insurance firms will be consistently courteous to customer. Average Assurance 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 B. Employees in LIC company will be consistently courteous to customers.Impact of service quality on customer loyalty Q 6) Expectation Assurance 1 2 3 4 5 The behavior of employees in excellent life insurance firms will instill confidence in customers. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Average Assurance Perception The behavior of employees in LIC company will instill confidence in customers. COLLEGE OF BUSINESS ADMINISTRATION Page 50 .

87 -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 B.8 -1.8 22.87 AVERAGE PERCEPTION 20.13 DIFFERENCE -0.67 24. COLLEGE OF BUSINESS ADMINISTRATION Page 51 .53 -0. M.Impact of service quality on customer loyalty 25 20 15 AVERAGE EXPECTATION 10 AVERAGE PERCEPTION DIFFERENCE 5 0 BEHAVIOUR OF EMPLOYEES -5 SAFE WITH THE INSURANCE COURTEOUS TO CUSTOMERS KNOWLEDGE TO ANSWER BEHAVIOUR OF EMPLOYEES SAFE WITH THE INSURANCE COURTEOUS TO CUSTOMERS KNOWLEDGE TO ANSWER AVERAGE EXPECTATION 21.6 20.8 21.4 21.33 22.

The employees of excellent companies will understand the specific needs of their customers. LIC company will have working hour convenient for all its customers.Impact of service quality on customer loyalty Q 7) Expectation Empathy 1 2 3 4 5 Excellent company will give customers individual attentions. The employees of LIC company will understand the specific needs of their customers. LIC company will have employees who give customers personal attention. LIC company will have their customers¶ best interest at heart. 1 2 3 4 5 2 3 4 5 2 3 4 5 1 2 3 4 5 Average Empathy Perception Empathy 1 2 3 4 5 LIC company will give individual attentions on customers. COLLEGE OF BUSINESS ADMINISTRATION Page 52 . 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 Average Empathy B. Excellent company will have their customers¶ best interest at heart. M. Excellent company will have working hour 1 convenient for all the customers Excellent company will have employees who 1 give customers personal attention.

67 AVERAGE PERCEPTION 23.4 DIFFERENCE -1.47 -0.47 -1.13 24.27 Page 53 .2 23.6 22.13 -1.07 23.93 -1. B.47 21. COLLEGE OF BUSINESS ADMINISTRATION § § -5 AVERAGE EXPECTATION 25 24.6 22.Impact of service quality on customer loyalty 25 20 5 0 AVERAGE EXPECTATION 5 0 AVERAGE PERCEPTION DIFFERENCE INDIVIDUAL ATTENTION CONVENIENT TO CUSTOMERS CUSTOMER PERSONEL ATTENTION BEST INTEREST AT HEART UNDERSTAND THE SPECIFIC NEEDS 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. M.53 22.

3 20.Impact of service quality on customer loyalty Q 8) SERVQUAL SCORE CRITERIA Weight Weighted Average score TANGIBILITY RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY TOTAL 10 30 20 10 30 100 10 -27. M.46.24 Average 30 20 TANGIBILITY 10 0 -10 RELIABILITY RESPONSIVENESS ASSURANCE -20 -30 -40 EMPATHY 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.2 Average of Weighted Average score = Weighted Average score 5 = (.2 -37.5 -46.2 / 5) = -9.8 -12. B. COLLEGE OF BUSINESS ADMINISTRATION Page 54 .

4 to 6 Yrs.22% 34. 2 to 4 Yrs.Impact of service quality on customer loyalty Q 9) ow long have you been the customer of this company? 9 31 12 1 to 2 Yrs. 3. No. Particular 1 to 2 Years 2 to 4 Years 4 to 6 Years 6 to 10 Years 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. 4. B. M. 2.45% Page 55 . COLLEGE OF BUSINESS ADMINISTRATION ¨ 3 6 to 10 Yrs.33% 42.00% 13. Percentage 10. 1. Sr.

1.33% 16. No.33% 12.22% Page 56 . 3.44% 23. 5. Strongly Agree Agree Average Disagree Strongly Disagree Particular Interpretation:- B. 4. M.Impact of service quality on customer loyalty 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 11 12 31 Strongl Agree Agree 15 A erage Disagree Sr.67% 13. 2. COLLEGE OF BUSINESS ADMINISTRATION © 21 Strongl disagree ©  Percentage 34.

89% 25.00%  tr ngly Agr Page 57 .33% 12. Strongly Agree Agree Average Disagree Strongly Disagree Particular Interpretation:- B. 1. 3. 2.56% 13. 5. 4.22% 10. Q 11) the time is taken by LIC for documentation process is reasonable. COLLEGE OF BUSINESS ADMINISTRATION          tr ngly Di agr Percentage 38. M. No.Impact of service quality on customer loyalty 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 theconcerned professional are able to reach the expectation level of various customers. Strongly agree 5 Agree 4 Average 3 Disagree 2 Strongly dis agree 1 9 11 35 Agr 12 A rag Di agr 23 Sr.

89% 04. No. 2.89% 18.56% 28. 3. Strongly agree 5 Agree 4 Average 3 Disagree 2 Strongly dis agree 1 4 17 2 41 Strongl Agree Agree A erage 26 Disagree Strongl disagree Sr. 4.44% 02. Particular Strongly Agree Agree Average Disagree Strongly Disagree B.22% Page 58 . M. Q 12) I like to purchase different policy from this company again. COLLEGE OF BUSINESS ADMINISTRATION   Percentage 45. 1.Impact of service quality on customer loyalty 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. 5.

Impact of service quality on customer loy alty 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. M. B. COLLEGE OF BUSINESS ADMINISTRATION Page 59 .

Strongly Agree Agree Average Disagree Strongly Disagree Particular 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 B.00% 30. M. 1.00% Page 60 . Strongly agree 5 Agree 4 Average 3 Disagree 2 Strongly dis agree 1 9 10 Agree A erage Disagree Sr. 4.11% 08.89% 10.00% 11. No.Impact of service quality on customer loyalty Q 13) I would like to recommend products of this company to my friends and relatives. 2. 3. COLLEGE OF BUSINESS ADMINISTRATION $ 27 Strongl disagree " # ! 36 Strongl Agree Percentage 40. 5.

M. their family doesn¶t have to take any help for survival through others. 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.Impact of service quality on customer loy alty 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. B. We can say that company is successful in providing customers value services as per the expectations of 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. because of great technologies used in corporate world the time taken to get any service is quiet easier as compare to past era. COLLEGE OF BUSINESS ADMINISTRATION Page 61 . While researching I found that there are many consumers of LIC policy and most of them have consume from 4 to 6 years before. 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. 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. I found that the expectation of the consumer are mostly satisfied by the company because the company gives best to their customers.

People suggest that LIC should have increase their interest rate. CH. COLLEGE OF BUSINESS ADMINISTRATION Page 62 . M.Impact of service quality on customer loy alty 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. B. ± 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 provided a good services after sale of product or policy of it. COLLEGE OF BUSINESS ADMINISTRATION Page 63 .  Speak about the good features a plan offers like high returns. life cover. 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 B. indexation. tax benefits.Impact of service quality on customer loy alty People suggest that LIC should have advertise its product with well known brand ambassador in order to increase its sales. 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. SUGGESTIONS FOR IMPROVEMENT  Advertise about the company and its products ± it motivates individuals to purchase insurance  Create a positive perception about insurance. M.

ANNEXURE QUESTIONNAIRE for customers Respected Sir or Madam.Impact of service quality on customer loy alty 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. M. Data & information given by you will be kept strictly confidential & will be used for academic purpose only.A from B. M.Y B. college of Business Administration I am conducting a survey on PROJECT REPORT ON IMPACT OF SERVICE QUALITY ON CUSTOMER LOYALTY. B. COLLEGE OF BUSINESS ADMINISTRATION Page 64 . I am Tejani Gautam student of T. Kindly give me your valuable support by providing needed data & information in the following questions. The purpose of this analysis is not professional but it is a part of our study.B.

. payment. M. 1 5 2 3 4 Code 01 02 03 04 05 Scores Materials associated with service (such as forms.. Gautam Tejani Questioner for customers According to your opininon please give the rank to following question . Ranking detail and code are given below:Detail Strongly Disagree Disagree Average Agree Strongly Agree Expectation Expectation:. Tangibles Excellent Life Insurance Company will have modern equipment. COLLEGE OF BUSINESS ADMINISTRATION Page 65 . bandages etc.It shows the extent to which you think insurance company (Life) should posses following features.) will be visually appealing at an excellent company.Impact of service quality on customer loyalty Yours sincerely. 1 5 2 3 4 B.

company will show sincere interest in solving it. COLLEGE OF BUSINESS ADMINISTRATION 1 2 3 4 Page 66 . they do. 1 5 2 3 4 Life insurance company will provide the services at the time they promise to do so. 1 5 2 3 4 Average Reliability Responsiveness Employees of excellent life insurance firms B. 1 5 2 3 4 When customer has a problem. 1 5 2 3 4 Excellent firms will perform the activity of issuing cheque of sum assured right the first time. M. 1 5 2 3 4 Excellent life insurance company will insist on error-free record.Impact of service quality on customer loyalty Average tangibility Reliability When companies do something by a certain time.

1 5 2 3 4 Employees in excellent life insurance firms will be consistently courteous to customer. 1 5 2 3 4 Employees of excellent life insurance firms will never be too busy to respond to customers¶ requests. COLLEGE OF BUSINESS ADMINISTRATION Page 67 . 1 5 2 3 4 Employees of excellent life insurance firms will always be willing to help customer. 1 5 2 3 4 Insured customers of excellent life insurance firms will feel safe with insurance services. 5 Employees of excellent life insurance firms will give prompt services to customers. 1 5 2 3 4 B. 1 5 2 3 4 Average Responsiveness Assurance The behavior of employees in excellent life insurance firms will instill confidence in customers.Impact of service quality on customer loyalty will tell the customers when services will be performed. M.

COLLEGE OF BUSINESS ADMINISTRATION Page 68 . 1 5 2 3 4 Excellent company will have working hour convenient for all the customers 1 5 2 3 4 Excellent company will have employees who give customers personal attention. 1 5 2 3 4 Average Assurance Empathy Excellent company will give customers individual attentions. M. 1 5 2 3 4 Excellent company will have their customers¶ best interest at heart.Impact of service quality on customer loyalty Employees in excellent life insurance firms will have the knowledge to answer the customers¶ questions. 5 1 2 3 4 The employees of excellent companies will understand the specific needs of their customers. 1 5 2 3 4 B.

1 5 2 3 4 Average tangibility Reliability When companies do something by a certain time. they do.It shows the extent to which you think-insurance company (life) should posses following features.Impact of service quality on customer loyalty Average Empathy Perception Perception:. M. 1 5 2 3 4 When customers (you) have a problem..-bandages etc.-payment. COLLEGE OF BUSINESS ADMINISTRATION 1 2 3 4 Page 69 . LIC company will show sincere interest in solving 5 it.) will be visually appealing in LIC company. B. Tangibles LIC has modern looking equipment 5 1 2 3 4 Scores Materials associated with service (such as forms..

1 5 2 3 4 B. 1 5 2 3 4 LIC Company will provide the services at the time it promises to do so. 5 1 2 3 4 LIC company will insist on error-free record.Impact of service quality on customer loyalty LIC Company will perform the activity of issuing cheque of sum assured right the first time. M. 1 5 2 3 4 Employees of LIC Company will always be willing to help customers. COLLEGE OF BUSINESS ADMINISTRATION Page 70 . 1 5 2 3 4 Employees of LIC Company will give prompt services to customers. 5 1 2 3 4 Average Reliability Responsiveness Employees of LIC company will tell the customers when services will be performed.

1 5 2 3 4 Average Assurance Empathy LIC company will give individual attentions on customers. 1 5 2 3 4 Insured customers of LIC company will feel safe with insurance services. 1 5 2 3 4 Employees in LIC company will be consistently courteous to customers.Impact of service quality on customer loyalty Employees of LIC company will never be too busy to respond to customers¶ requests. 1 5 2 3 4 B. COLLEGE OF BUSINESS ADMINISTRATION Page 71 . 1 5 2 3 4 Employees in LIC company will have the knowledge to answer the customers¶ questions. 5 1 2 3 4 Average Responsiveness Assurance The behavior of employees in LIC company will instill confidence in customers. M.

1 5 2 3 4 LIC company will have employees who give customers personal attention. 1 5 2 3 4 The employees of LIC company will understand the specific needs of their customers. M.Impact of service quality on customer loyalty LIC company will have working hour convenient for all its customers. 1 5 2 3 4 LIC company will have their customers¶ best interest at heart. COLLEGE OF BUSINESS ADMINISTRATION Page 72 . 1 5 2 3 4 Average Empathy CUSTOMER LOYALTY QUESTIONERS B.

Strongly agree 5 Agree 4 Average 3 Disagree 2 Strongly dis agree 1 B. Strongly agree 5 Agree 4 Average 3 Disagree 2 Strongly dis agree 1 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 12) I like to purchase different policy from this company again.Impact of service quality on customer loyalty 9) How long have you been the customer of this company? 1 to 2 yrs 4 to 6 yrs 2 to 4 yrs 6 to 10 yrs 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 11) The time is taken by LIC for documentation process is reasonable. M. COLLEGE OF BUSINESS ADMINISTRATION Page 73 .

htmlhttp://www.com/what-is-customer-loyalty.Impact of service quality on customer loy alty 14) Suggestion ___________________________________________________________________________ ___________________________________________________________________________ Bibliography http://www.html http://www.com/company/Life-Insurance-Corporation-of-India/348.com/sales/customer-service/1961-1.shine.allbusiness.org/ http://www.html[customerloyalty http://www.com/company-activities-management/operations-customer/102070541. COLLEGE OF BUSINESS ADMINISTRATION Page 74 .htm[customer loyalty http://www.in/history.htm[history] http://info. M.licindia.wisegeek.com/methods_zeithaml_servqual.customerloyalty.aspx [profile] Production management book: kanishka bedi B.allbusiness.12manage.

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