Date:.. Smt. V. Sumalatha Ph.D.

Scholar Department of Commerce & Business Management,

Kakatiya University Warangal

Dear Policy Holder, You are welcome to participate in a Research Study on Customer

Relationship Management in Life Insurance Sector A Comparative Study of LICI & ICICI Prudential Kakatiya Life Insurance Company
under by

Smt.V.Sumalatha, Research Scholar of Department of Commerce & Business Management, University, Warangal
the guidance of Dr.S.Upendra Sastry, Reader in Commerce and Head & Director of Department of Commerce & MBA Programme, CKM Arts & Science College, Warangal. The purpose of this study is to examine the customers expectations and perceptions while purchasing the policy and getting the services of the insurance company. We will be grateful if you could spare some of your valuable time to answer the questionnaire. Your opinions are very important. The information and knowledge gained from this study will contribute to the development of a suggestive frame for getting good service. designed to take a few minutes. required on all issue on the questionnaire. wrong answers. The survey is It is very important that your answers There are no correct answers or

If you have any quarries/clarification , please feel free to

contact and send your opinions on this questionnaire to Smt.V.Sumalatha, through e-mail: naveenk_1978@yahoo.co.in. Thanking you,, Yours sincerely,

[V.Sumalatha]

CUSTOMER RELATIONSHIP MANAGEMENT IN LIFE INSURANCE SECTOR A COMPARATIVE STUDY OF LICI & ICICI PRUDENTIAL LIFE INSURANCE COMPANAIES
V. Sumalatha Ph.D. Scholar Dr. S. Upendra Sastry, Research Supervisor

Reader in Commerce & Director, MBA Programme, CKM Arts & Science College,Warangal

(I) PERSONAL PROFILE 1 2 3 4 Name & Address Contact No. Gender Age (in years) : Mr/Ms .

: Mobile No. Landline No. .. : Male / Female : Below 30 : 51-60 : 31-40 : Above 60: PG: Graduation: S.S.C. Illiterate Lawyer: Businessman: Self Employed 41-50 :

Qualifications

: Professional: Intermediate:

School upto 5th 9th standard 6 Profession : Doctor : Academician: Agriculturist: Any other: 7. What is your monthly income? (a) < Rs.5000 (c) Rs.10000-15000 (e) Rs.25000-50000 Engineer: Consultant:

(b) Rs.5000-10000 (d) (f) Yes

Rs.15000-25000
Rs.50000-100000

8. Do you have insurance policy?

No

9. Kindly state since how long you own the Life Insurance Policies (in years) (a) < 1 (c) 2-5 (e) 10-20

(b) 1-2 (d) 5-10 (f) > 20

10. State the Number of Policies owned by you?

..

11.If you have Policies taken from more than one company, please state the companies to which they belong? 1 2 3 4 5 6 LIC HDFC ICICI Birla Sun Life TATA AIG Bajaj

7 8 9 10 11

Reliance SBI ING Vysya AIVIVA BHARATI

12 13 14 15 16

Mahindra Sri Ram Newyark Metlife SAHARA

12. What is the mode of premium payment?

Monthly Quarterly Half yearly Yearly More than one mode

LICI

ICICI

13.

State the purpose with which you have taken Insurance Policy (Give ranks). a) Considering it as a reliable and trust worthy investment avenue b) Considering it as a Tax saving device c) Considering it as a Protection for future d) Premium paid is too low as compared to the benefits enjoyed e) Provision for payment of premiums through easy installment facility f) Provision for loan availment g) Facility for enjoying the benefit of risk coverage even after the last premium payment is over h) Any other

LICI

ICICI

14.How did you know about the Policies taken by you? (Give Ranking)

a. Through my friends b. Through News paper Ads. c. Through Ads on electronic media d. Through Staff specially engaged for undertaking Customer

LICI
3

ICICI

Campaigns e. Satisfaction derived from the services rendered on Policies already held by me f. Display of Boards erected in Prominent localities g. I have approached the insurance company h. Insurance company agent has approached me i. Through bank where I maintain an account j. Through visits paid to fairs and exhibitions participated by Insurance organizations. k. Adds through Wall paintings l. Through visits paid to the Websites of the Insurance Companies. m. Any other (please specify) ____________________________ 15.What factors have motivated you to take Insurance Policy (Give Ranking)

a. Image of the Company b. Locational Convenience c. Flexible Working hours d. Many branch locations e. Maintenance of Excellent Service Quality f. Proximity and operational Convenience g. Wide range of products/services offered h. Competitiveness exhibited in the services offered i. Availability of competent staff having positive attitude, curtesy and promptness j. Efficient and hastle free Complaint Handling System k. High rate of return on Insurance Products as compared to other Savings i.e Fixed Deposits in banks, National Savings Certificates etc. l. Provision for a variety of value added services viz. Loan facility, Credit Card Services, VAN, MAN Networks, Collection of Premium etc. m. Adequate surrender value in case the Policy is discontinued before maturity for unforeseen reasons. n. Provision for Premium payment through Bank ATMs o. Simple and less cumbersome procedure for purchasing a policy p. Financial stability of the Insurance company q. Have a confidence that I can enjoy value for money. r. Provision for Convertibility of products s. Provision or flexible payment schedule t. Availability of the support from the well trained agents u. Availability of the Support from the enlightened staff v. Availability of mechanism for expeditious settlement of claims.

LICI
4

ICICI

w. Any other (please specify) ____________________________ 16. Do you know that the following Customer Services are available. (Put mark in the relevant box) I Policy Related Services LICI 1. Issue of Duplicate Policy Yes No 2. Permitting Policy alterations viz., Term of the Yes No Policy, Sum assured, Mode of payment of premiums, name, Settlement options, Nominee, Change of address, etc. 3. Revival of Policy Yes No 4. Maintenance of Records Yes No 5. Issue of Premium Payment Reminder Yes No 6. Provision of Grace period for delayed Yes No payments. 7. Provision of loan facility by Way of accepting Yes No the mortgage of the Policy bonds. 8. Facility of showing the Insurance policy as a Yes No Collateral Security. 9. Availability of alternative channels of Yes No distribution 10.Provision for Convertibility of products Yes No II Settlement Related Services 1. Surrender of a Policy Yes No 2. Insurance Policy becoming paid-up assurance Yes No in the event of default after payment of premium for 3 years. 3. Awareness on the guidelines of IRDA in Yes No respect of claims settlement 4. Availability of Grievance Redressel Yes No mechanism 5. Availability of Services of Ombudsman Yes No 6. Availability of the Services from the CRM Yes No Department III IT - Enabled Services 1. Furnishing information about the Policy status Yes No 2. Acceptance of payment of Premium through Yes No ECS, ATMs, Credit Cards, etc. 3. Furnishing Product Information Yes No 4. Availability of Information Centers Yes No 5. Availability of E-Service channels Yes No 6. Furnishing Statement of Premiums paid during Yes No the financial year for filling IT returns. 17. Kindly State your expectations on the service quality to be provided by the Insurance Organization.
5- Almost Always True. 4- Mostly True. 3-Sometimes True. 2-Rarely True . 1- Not at all Time

ICICI Yes No Yes No

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

No No No No No No No No No No No No No No No No No No No No

5 4 I 1 TANGIBILITY Insurance Organization will have many branch locations

3 2 1

2 3 4

5 6 7 II 1 2 3 4 5 III 1 2 3

Insurance Organization will have convenient working hours Insurance Organization will have visually appealing offices, equipment, drinking water facilities, sanitary facilities, parking place, etc. Insurance Organization will have visually appealing pamphlets, Advertisement boards, sign boards, posters, etc., explaining the product features suiting the changing needs of the customers. Staff recruited will make only deliverable promises. Employees have the knowledge of not only its own products and services, but also competitors products and services. Employees will have latest technical knowledge. RELIABILITY Insurance Organization will provide accurate information on the variety of products and services and guide the customers about the right choice of products and services. Insurance Organization provides the service right the first time Employees have the ability to provide service at the promised time. Employees will be willing to help the customers in times of need Insurance Organization will maintain the confidentiality of the information about the customers. RESPONSIVENESS Employees will have the ability in achieving customer empowerment through educating them about the variety of products launched by it. Employees will be highly knowledgeable with competence to explain the Investment and Tax benefits available to them, if the Insurance policy is bought. Employees will be ready to explain the customers about the technological advancements taking place in the field of marketing of Insurance services ensuring variety of benefits viz., speed, accuracy, timeliness of these services. Employees will welcome the complaints from the customers. Employees will treat complaints from the customers as an opportunity to learn and improve upon, not a threat. Employees will be highly approachable. By way of accepting the premium payments through ECS, employees working with the Insurance Organization will save our time. Employees with their polite behavior and being consistently courteous to the customers problem will enable the establishment of enduring Customer Relationship ASSURANCE Employees will instill confidence in the Customer. Employees will make customers feel secure and safe. Employees will always feel that, every thing begins and ends with the customers. Employees will always be ready to answer the customers on technology related querries Insurance organization will feel that the customer centered 6

4 5 6 7 8 IV 1 2 3 4 5

V 1 2 3 4 5

policies alone will help in further prospering through improving the Service quality. EMPATHY Employees will render prompt and fault-free customer services. Employees will pay individual attention to the customer problems. Employees will always understand the specific needs of their customers. Employees by keeping customer interest as the important factor will always exhibit customer oriented behavior Employees by recognizing the importance of the fact that, the satisfied customer act as a Brand Ambassador will enable us not only in making repeat transactions, but also in recommending to our friends and relatives that, it is the safest place for transacting with the Insurance business. Employees will be able to think from the customers point of view. 18. Kindly give your opinions on the following: (Put mark in the relevant box)

5- Highly satisfied. 4- Satisfied. 3-Somewhat Satisfied. 2-Dissatisfied. 1- Highly Dissatisfied

LICI 5 4 3 2 1 1 2 Agents knowledge and competence in answering querries of the customers Initiatives of the agent in periodically guiding the customers regarding the policy status, due date of premium payment, new products and services launched by the Insurance Organizations etc. Agents ability in giving timely advice on the investment and tax benefits available to the policy holders Availability of support from the agents in various aspects viz. Documentation starting from the issue of policies till the settlement of claims Availability of support from the agents in timely revival of policies, change of nominations, addresses, mode of premium payments, preparation of loan quotations etc.

ICICI Pru. Life 5 4 3 2 1

3 4 5

19. Kindly state your perception on the service quality provided to you by the Insurance organizations I 1 2 3 4 TANGIBILITY Insurance Organization has convenient branch locations Insurance Organization has convenient operating hours Insurance Organization has visually appealing and well furnished office layout with necessary facilities provided to the customers viz., drinking water, sanitary and sitting facility etc. Insurance Organization has visually appealing sign boards, pamphlets, posters explaining the product features drawing the 7

5 II 1 2 3 4 5 III 1 2 3 4 5 IV 1 2 3 4 5 V 1 2 3 4

attention of the customers to take a buying decision Insurance Organization has competent staff, well equipped with the needed skills attracting the customers to have enduring relationship with it. RELIABILITY Employees provide up-to-date information about the features of the products, besides explaining the customers about the associated investment and tax benefits. Employees are known for fulfilling the promises. Employees are known for displaying the sincere interest in resolving the customer problem. Insurance Organization introduces computerization in marketing of its services, so as to achieve maximum customer satisfaction. Insurance Organization provides safety and security to my personal information RESPONSIVENESS Employees always educating the customers about the variety of Insurance services, besides helping them to make a right choice of those services. Employees are known for prompt and fault-free customer services. Employees are highly approachable. Employees are not too busy to attend customer problems Employees with their polite and courteous behavior always have been inspiring me to make repeat transactions. ASSURANCE Employees are successful enough in raising my confidence. I always feel secured and safe. Employees are known for providing me a better After-Aales Services. Opinions given by me through feedback were duly considered for bringing further improvements in Insurance products I enjoy accessibility to the services of the employees by way of getting technology related querries answered by them. EMPATHY Employees were always ready to pay individual attention to my problems Employees were always ready to understand my specific needs. Employees always think that they are working for the customers, not the company Employees treat the customers with due care, affection and attention.

20. Kindly state the time taken by the staff in rendering following services. (Put mark in the relevant box) S- Satisfied NS-Not Satisfied Sl. Service Time Taken (in minutes) Time Taken (in minutes) No. LICI ICICI

Satisfaction Level (S/NS)

1 2 3 4 5 6 7 8 9 10 11 12

Acceptance of Premium payments Alterations in respect of term of the policy, Sum assured, Mode of payment, Nominee, etc. Sanction of short-term loans by accepting the mortgage of policy bonds Issue of Loan quotations Documentation process at the time of issue of policy Claims settlements viz. on maturity of the policy/ death of the policy holder Furnishing information about the policy status Arranging statement of premium paid during the financial year for filling IT returns Issue of Duplicate Policy Bond Revival of Policy in the event of Lapsation IT-Enabled services Any other (Please specify) 21 a. LICI Kindly state whether you have experienced any Yes No difficulty in availing the services from the Insurance Providers? ICICI Yes No

b. 1

If, yes, please state the difficulties encountered by you during the availment of following services from the Insurance providers. Policy Related Services 2 Settlement Related Services

IT - Enabled Services

Other Services

Satisfaction Level (S/NS)

<10

<10

No response

10-20

>20

10-20

No response

>20

22 a b Are you going to switch over to any other Insurance Yes Company?

LICI No

Yes

ICICI No

If yes, please state the reasons with which you want to switch over to other Insurance organizations (please give ranking in order of preference) i. Convenient branch locations ii. Convenience in operating hours iii. Availability of well trained staff equipped with needed skills to handle customer complaints iv. Affordability in premium rates v. Flexibility in the schedule of premium payments vi. Provision for a wide range of services vii. Customer centric business strategies followed by the other Insurance organizations viii. Effective mechanism for after-sales services ix. Provision for involvement of customers in the process of product design x. Provision for effective computerization in the field of marketing of Insurance services aimed at ensuring speed, accuracy and timeliness in the delivery of services. xi. Less cumbersome procedure involved in the documentation process beginning with the issue of Insurance policy till the end of claim settlement. xii. Any other (Please specify)

If no, state the reasons for not switching over to other Insurance Companies (please give ranking in order of preference) i. Location Convenience enjoyed with the present Insurance Company ii. Cost of switching is more than the associated benefits iii. Emotional bondage developed with the present Organization. iv. Established reputation enjoyed by Insurance Organizations V. Availability of satisfactory Service Quality from the Internal Customers. vi. Have a faith in the present Insurance Organization that, it would improve service at least in near future vii. Product differentiation policy pursued by the present Insurance organization viii. No guarantee that, better service is available elsewhere, even after switch over. ix. Present Insurance organization has a wide range of products. x. Present Insurance organizations imposes reasonable penalties in case of delay in payment of premiums. xi. Provisions for other services through Cross-Selling xii. Any other (please specify)

Rank LICI ICICI

23. What measures do you suggest for improving Service Quality (please give ranking in order of preference)

Rank LICI ICICI 10

a. b. c. d. e. f. g. h. i. 26

Bringing attitudinal changes Customers(Employees). Redefining organizational practices

among

the

Internal

Reinforcing a work culture fostering a spirit centeredness Involving the Internal Customers in product design. Involving the External Customers in product design.

of

customer

Empowerment of the Internal Customer by delegating adequate authority coupled with responsibilities Designing appropriate incentive system rewarding such employees who are successful in Customer Service Showing respect for diverse ideas and opinions of external customers Giving and taking honest and constructive feed back from the external customers. LICI Are you going to recommend to your friends and Yes No relatives to take policies from these Insurance Companies. ICICI Yes No

11

Customer Satisfaction with Service Quality Dimensions 1 Much worse than expected 2 Worse than expected Responses 3 Equal to Expectation 4 Better than expected 5 Much better than expected

Please circle any one option among (i) TANGIBILITY TA1 Ability to give access to information , productive/service catalogues TA2 Provision of visually attractive offices, equipment and materials TA3 Ability to provide variety of entertainment facilities, etc. TA4 Appearance and uniforms of employees (ii) RELIABILITY RL1 How timely is the delivery of insurance service by your insurance company? RL2 How truthful (keeping to promises) is your insurance company? RL3 How dependable and consistent is your insurance company in solving customers complaints? RL4 How able is your insurance company to perform services right the first time? RL5 How able is your insurance company to insist on error-free records. (iii) RESPONSIVENESS RS1 How is insurance company able to tell customers exactly when services will be performed? RS2 How able is your insurance company to give prompt customer services and attended to customers needs/ problems? RS3 How are employees willing to help customers in emergency situations? RS4 How are the employees approachable and easy to contact? RS5 How is the Employees ability to communicate clearly with you? (iv) EMPATHY EM1 Your insurance company favourable terms and conditions. EM2 Your insurance company has operating hours convenient to

12

EM3 EM4 EM5 EM6 EM7 AS1 AS 2 AS 3 AS 4 PX1 PX2

all customers. Your insurance company has sound loyalty programme to recognize you as a frequent customer. Your insurance company has customers best interest at heart. Your insurance company gives individual customer attention by employees Your insurance company makes efforts to understand specific customer needs. Your insurance company apologizes for inconvenience caused to customers. (v) ASSURANCE Ability to provide variety of value added services to customers, e.g., loan facilities, etc. Sincerity and patience in resolving customers complaints/ problems The behaviour of employees in instilling confidence in customers. Employees use of required skills and knowledge to answer customers questions. (vi) PRICE How affordable are the prices for your insurance companys services in terms of charges for other services customers receive (vii) TECHNICAL QUALITY Successful in completing insurance claims settlements Employees have technological knowledge and skills in solving customer problems. Insurance companys ability to provide insurance products/ policies that meet customers requirement Insurance company innovativeness ability to use current technology to improve services. Providing adequate variety of insurance policies (viii) IMAGE How successful is your insurance company? What is the reputation of your insurance company? What is the brand image of your insurance company? How socially responsible is your insurance company?

TQ 1 TQ 2 TQ 3 TQ 4 TQ 5 IM1 IM2 IM3 IM4

13