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Impact of service quality on customer loyalty

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

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

LIFE INSUR NCE IN IN!I Life insurance in India made its debut ell over !"" years a#o$ In our country% &ic& is one

of t&e most populated in t&e orld% t&e prominence insurance is not as idely understood% as it ou#&t to be$ '&at follo s is an attempt to acquaint readers life insurance% it& some of t&e concepts of it& special reference to LIC It s&ould% &o ever% be clearly understood t&at

t&e follo in# content is by no means an e(&austive description of t&e terms and conditions of an LIC policy or Its benefits or privile#es$ )or more details% please contact our branc& or divisional office$ Any LIC A#ent ill be #lad to &elp you c&oose t&e life insurance plan to meet your needs and render policy servicin#$ "#at Is Life Insurance$ Life insurance is a contract t&at pled#es payment of an amount to t&e person assured *or &is nominee+ on t&e &appenin# of t&e event insured a#ainst$ ,&e contract is valid for payment of t&e insured amount durin# ,&e date of maturity$ .pecified dates at periodic intervals$ Unfortunate deat&% if it occurs earlier$

Amon# ot&er t&in#s% t&e contract also provides for t&e payment of premium periodically to t&e Corporation by t&e policy&older$ Life insurance is universally ac/no led#ed to be an institution% &ic& eliminates 0ris/0% substitutin# certainty for uncertainty and comes to t&e timely aid of t&e family in t&e unfortunate event of deat& of t&e bread inner$ 1y and lar#e% life insurance is civili2ation3s partial solution to t&e problems caused by deat&$ Life insurance% in s&ort% is concerned person!$ ,&at of dyin# prematurely leavin# a dependent family to fend for it$ 5$ ,&at of livin# till old a#e it&out visible means of support$ Customer satisfied it& LIC service because t&e LIC totally concentrate customer relations it& t o &a2ards t&at stand across t&e life4pat& of every

and it ma/es customers attract to ards t&e LIC$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

LIC moves to ards better customer relations 6lans to start a ne portal for its policy&olders

Life Insurance Corporation of India *LIC+ is embar/in# on a number of customer relations&ip mana#ement initiatives to retain its foot&old in t&e mar/et% in t&e inc&in# t&eir ay up in t&e life insurance sector$ ,&e Insurance be&emot& is plannin# to tie4up it& a number of ban/s to enable a payment a/e of private players

#ate ay &erein t&e policy&olders can ma/e t&eir premium payments via credit cards$ INSUR NCE IN IN!I %& Insurance is a federal sub7ect in India and &as a &istory datin# bac/ to !8!8$ Life and #eneral insurance in In'ia is still a nascent sector players it& &u#e potential for various #lobal &ile

it& t&e life insurance premiums accountin# to 5$9: of t&e country0s G;6

#eneral insurance premiums to "$<9: of India0s G;6$,&e Insurance sector in India &as #one t&rou#& a number of p&ases and c&an#es% particularly in t&e recent years &en t&e Govt$ of

India in !=== opened up t&e insurance sector by allo in# private companies to solicit insurance and also allo in# FDI up to 5<:$ Ever since% t&e Indian insurance sector is considered as a boomin# mar/et it& every ot&er #lobal insurance company antin# to &ave a lion0s s&are$ Currently% t&e lar#est life insurance company in India is still o ned by t&e #overnment$ History of Insurance in India Insurance in India &as its &istory datin# bac/ till !8!8% &en Oriental Life Insurance

Company as started by Europeans in Kolkata to cater to t&e needs of European community$ 6re4independent era in India sa discrimination amon# t&e life of forei#ners and Indians

it& &i#&er premiums bein# c&ar#ed for t&e latter$ It as only in t&e year !8>"% 1ombay

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


?utual Life Assurance .ociety% t&e first Indian insurance company covered Indian lives at normal rates$At t&e da n of t&e t entiet& century% insurance companies started mus&roomin# up$ In t&e year !=!5% t&e Life Insurance Companies Act% and t&e 6rovident )und Act ere passed to re#ulate t&e insurance business$ ,&e Life Insurance Companies

Act% !=!5 made it necessary t&at t&e premium rate tables and periodical valuations of companies s&ould be certified by an actuary$ @o ever% t&e dispara#e still e(isted as discrimination bet een Indian and forei#n companies$ ,&e oldest e(istin# insurance company in India is National Insurance Company Ltd% &ic& as founded in !="< and is

doin# business even today$ ,&e Insurance industry earlier consisted of only t o state insurers- Life Insurers i$e$ Life Insurance Corporation of India *LIC+ and General Insurers i$e$ General Insurance Corporation of India *GIC+$ GIC &ad four subsidiary companies$ 'it& effect from December 2000% t&ese subsidiaries &ave been de4lin/ed from parent company and made as independent insurance companies- Oriental Insurance Company Limited% New India ssurance Company Limited% National Insurance Company Limited and !nited India Insurance Company Limited$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


LIC is plannin# to start a ne portal for its policy&olders &ere a customer can lo# in% #et &en &eAs&e s&ifts to a ne place

details on &isA&er policies% and c&an#e t&e resident address mont&3s time$

and even ta/e a printout of t&e income ta( certificate$ ,&e portal is li/ely to be ready in a

Some of t#e important milestones in t#e life insurance (usiness in In'ia are% !8!8- Oriental Life Insurance Company% t&e first life insurance company on Indian soil started functionin#$ !8>"- 1ombay ?utual Life Assurance .ociety% t&e first Indian life insurance company started its business$ !=!5- ,&e Indian Life Assurance Companies Act enacted as t&e first statute to re#ulate t&e life insurance business$ !=58- ,&e Indian Insurance Companies Act enacted to enable t&e #overnment to collect statistical information about bot& life and non4life insurance businesses$ !=B8- Earlier le#islation consolidated and amended to by t&e Insurance Act it& t&e ob7ective of protectin# t&e interests of t&e insurin# public$

PRESENT SCEN RIO & LIFE INSUR NCE IN!USTR) IN IN!I At 6resent !< life insurance companies are operatin# in India$ Out of !< companies !9 are private players and one i$e$ Life Insurance corporation of India is in 6ublic sector &oldin# ma7or portion of Life insurance mar/et s&are in India$ ,&e list of Life insurance companies is as follo -

.$No NA?E O) ,@E CO?6ANC *+ "a#a# llian$ Life Insurance Company Limited$ ,+ "irla %un Life Insurance Co& Ltd

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Impact of service quality on customer loyalty


-+ 'DFC %tandard Life Insurance Co& Ltd .+ ICICI (rudential Life Insurance Co& Ltd /+ ING )ysya Life Insurance Company Ltd& 0+ Life Insurance Corporation of India 1+ *a+ New ,ork Life Insurance Co& Ltd 2+ *et Life India Insurance Company (-t& Ltd& 3+ *4+ %"I Life Insurance Co& Ltd **+ /ata IG Life Insurance Company Limited *,+ 0eliance Life Insurance Company Limited& Kotak *a.indra Old *utual Life Insurance Limited

*-+ *.+ */+ *0+

-i-a Life Insurance Co& India (-t& Ltd& %a.ara India Life Insurance Co1 Ltd& .&riram Life Insurance Co% Ltd$ 1&arti ADA Life Insurance Company Ltd$

Related Acts:-

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Impact of service quality on customer loyalty


,&e insurance sector ent t&rou#& a full circle of p&ases from bein# unre#ulated to

completely re#ulated and t&en currently bein# partly dere#ulated$ It is #overned by a number of acts% it& t&e first one bein# t&e Insurance Act% !=B8$ T#e Insurance ct5 *3-2 ,&e Insurance Act% !=B8 as t&e first le#islation #overnin# all forms of insurance to provide strict state control over insurance business$ Life Insurance Corporation ct5 *3/0 Even t&ou#& t&e first le#islation life insurance in India as enacted in !=B8% it as only in 23 4anuary 2356% t&at

as completely nationali2ed% t&rou#& a Government ordinanceE t&e as enacted in t&e same year

Life Insurance Corporation Act% !=9< effective from !$=$!=9<

to% inter4alia% form LI)E IN.URANCE COR6ORA,ION after nationali2ation of t&e 5F9 companies into one entity$ ,&ere ori#in in !=9<$ Nationali2ation ere 5F9 insurance companies of bot& Indian and forei#n as accomplis&ed by t&e #ovt$ acquisition of t&e as created on !

mana#ement of t&e companies$ ,&e Life Insurance Corporation of India

.eptember% !=9<% as a result and &as #ro n to be t&e lar#est insurance company in India as of 5""<$728 6eneral Insurance 7usiness 8Nationali9ation: ct5 *31, ,&e General Insurance 1usiness *Nationali2ation+ Act% 2392 as enacted to nationali2e t&e

!"" odd #eneral insurance companies and subsequently mer#in# t&em into four companies$ All t&e companies ere amal#amated into National Insurance% Ne India Assurance%

Oriental Insurance% and United India Insurance &ic& ere &eadquartered in eac& of t&e four metropolitan cities$7:8

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


INTRO!UCTION OF SO;E LIFE INSURERS+ 7IRL SUN LIFE 1irla .un Life Insurance Company Limited is a 7oint venture bet een ,&e Aditya 1irla Group% one of t&e lar#est business &ouses in India and .un Life )inancial Inc$% a leadin# international financial services or#ani2ation$ ,&e local /no led#e of t&e Aditya 1irla Group combined it& t&e e(pertise of .un Life )inancial Inc$% offers a formidable protection for $birlasunlife$com+ your future$ *.ource7 J J LLI N< 1a7a7 Allian2 is a 7oint venture bet een Allian2 AG it& over !!" years of e(perience in

over >" countries and 1a7a7 Auto% a trusted automobile manufacturer for over 99 years in t&e Indian mar/et$ ,o#et&er t&ey are committed to offerin# you financial solutions t&at provide all t&e security you need for your family and yourself$ 1a7a7 Allian2 is t&e number one private life insurer for t&e year 5""9 G 5""<$ It is leadin# by >8 crores$ It &as e(perienced a &oppin# #ro t& of 5!<: in t&e last financial year$

T T

I6

,ata Ai# is a 7oint venture bet een t&e ,ata #roup and American International Group Inc$ In one of t&e plans t&e company offers &ospital cas& benefit &erein it ill pay Rs$ 59"" per day in case of &ospitali2ation and Rs$!5$9 la/&s in case t&e person suffers from any critical illness$ Annual premium is muc& less *about Rs$ <>!5+ to avail suc& a #ood benefit$ C&ar#es are relatively lo compared to @;)C .tandard for some policies$

,&e company offers &i#& covera#e plans at lo

cost$ ,&ere is a plan even for a policy term

of ! year$ Cour family can continue to en7oy t&eir current lifestyle even in t&e case of somet&in# &appenin# to you$ ,&ese plans are very fle(ible and @;)C .tandard could adopt t&is idea of insurin# individuals for s&ort periods of time$ )or e(ampleE t&ere is a family of four$ ,&e only earnin# member is t&e fat&er$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


ICICI PRU!ENTI L ICICI 6rudential is a stiff competitor for @;)C .tandard$ ,&e company is a mer#er bet een ICICI 1an/ &ic& is t&e bi##est private ban/ in India and 6rudential 6lc &ic& is a #lobal life insurance company$

,&e company &as an investment plan

&ic& is mar/et related G Invest .&ield Life$ In t&is ill be returned to investors$ It is a #uaranteed

plan even if t&e mar/et falls% t&e premium

plan &ic& ensures t&e company carefully invests your money$ =I= LIFE INSUR NCE Aviva &as !9< 1ranc&es in India *includin# rural branc&es+ supportin# its distribution net or/$ ,&rou#& its 1ancassurance partner locations% Aviva products are available in F=> to ns and cities across India$ 'it& a stron# sales force of over 5>%""" )inancial 6lannin# Advisers *)6As+% Aviva &as initiated an innovative and differentiated sales approac& to t&e business$ ,&rou#& t&e H)inancial @ealt& C&ec/I *)@C+ Aviva3s sales force &as been able to establis& its credibility in t&e mar/et$ ,&e )@C is a free service administered by t&e )6As for a need4based analysis of t&e customer3s lon#4term savin#s and insurance needs$ ;ependin# on t&e life sta#e and earnin#s of t&e customer% t&e )@C assesses and recommends t&e ri#&t insurance product for t&em$ ING Vysya Life Insurance It &as a dedicated and committed advisor sales force of over 5!%""" people% or/in# from !F" branc&es located in >F ma7or cities across t&e country and over B%""" employees$ It also distributes products in close cooperation it& t&e ING Jysya 1an/ net or/$ ,&e Company &as a customer base of over F%9"%""" K is &eadquartered at 1an#alore$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

Cou can pay LIC premiums usin# Net 1an/in# accounts it& any of t&e follo in# ban/s-4

1an/ of India Union 1an/ of India 6un7ab National 1an/ .tate 1an/ of India .tate 1an/ of Indore @;)C 1an/ ICICI 1an/ A(is 1an/ Citiban/ I;1I 1an/ Centurion 1an/ of 6un7ab *erst &ile Centurion 1an/+ Centurion 1an/ of 6un7ab *erst &ile 1an/ of 6un7ab+ IndusInd 1an/ A1N A?RO 1an/ Kota/ 1an/ 1an/ of 1aroda 1an/ of 1aroda 4 Retail Net1an/in# 1an/ of 1aroda 4 Corporate Net1an/in# .tate 1an/ of 6atiala .tate 1an/ of 1i/aner K Laipur .tate 1an/ of ,ravancore City Union 1an/ Indian Overseas 1an/ Karnata/a 1an/ Oriental 1an/ of Commerce .tate 1an/ of @yderabad .tate 1an/ of ?ysore .tate 1an/ of .auras&tra .out& Indian 1an/ Ces 1an/ policies$

,&is facility is available for all non4ULI6 Credit card payments are not accepted under t&is payment facility$ ETOP nalysis of t#e In'ian Insurance In'ustry+

Environmental t&reat and opportunity profile also /no n as environmental impact matri( is a summari2ed depiction of t&e environmental factors and t&eir li/ely impact on or#ani2ation$ E,O6 is t&e most useful ay of structurin# t&e result of environmental analysis$ It can be prepared in t&e follo in# ay-

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

Environmental )actors

Environmental Analysis

Effect

Economic

*M+ ,&e Insurance industry is #ro in# at t&e rate of F" per cent per annum$ *Avera#e+$ *4+ ,&e #lobal do nturn &as affected t&e Insurance Industry in a very bad manner$

Opportunity

,&reats

,ec&nolo#ical

*M+ 'it& t&e passa#e of time t&e Insurance industry is Opportunity e(pandin# t&rou#& tec&nolo#ical aspects li/e Online 6remium K .ellin# of Insurance Online$ *M+ Insurance Industry score over t&e Ot&er service Opportunity providers% in providin# terms of tec&nolo#y Implementation Industries% #ivin# bot& cost and service Advanta#es$

6olitical K Le#al *M+ ,&ey restrict forei#n Insurance sector to develop t&eir business in India

Opportunity

.ocial

*M+ C&an#e in life style pattern in terms of savin#s Opportunity and investments$ *M+ ?ultinational Insurance Companies are no Opportunity loo/in# to enter into India and tryin# to s&are t&eir culture it& us$

C> PTER , %& INTRO!UCTION OF T>E CO;P N)

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


@istory Life Insurance in its modern form came to India from En#land in t&e year !8!8$ Oriental Life Insurance Company stated by Europeans in Calcutta as t&e first life insurance ere company on Indian .oil$ All t&e insurance companies establis&ed durin# t&at period natives ere not bein# insured by t&ese companies$ @o ever% later it& t&e efforts of eminent people li/e 1abu ?uttylal .eal% t&e forei#n life ere bein# treated as ere bein# c&an#ed on t&em$ 1ombay

brou#&t up it& t&e purpose of loo/in# after t&e needs of European community and Indian

insurance companies started insurin# Indian lives$ 1ut Indian lives sub4standard lives and &eavy e(tra premiums

?utual Life Assurance .ociety &eralded t&e birt& of first Indian life insurance company in t&e year !8>"% and covered Indian lives at normal rates$ .tartin# as Indian enterprise it& &i#&ly patriotic motives% insurance companies came as also one of suc&

into e(istence to carry t&e messa#e of insurance and social security t&rou#& insurance to various sectors of society$ 1&arat Insurance Company *!8=<+ companies inspired by nationalism$ ,&e . ades&i movement of !="94!="> #ave rise to more insurance companies$ ,&e United India in ?adras% National Indian and National Insurance in Calcutta and t&e @industan Co4operative Insurance Company too/ its birt& in one of t&e rooms of t&e Lorasan/o% &ouse of t&e #reat poet Rabindranat& ,a#ore% in Calcutta$ ,&e Indian ?ercantile% General Assurance and . ades&i Life *later 1ombay Life+ ere some of t&e companies establis&ed durin# t&e same period$ 6rior to !=!5$ ere passed$ ,&e Life Insurance India &ad no le#islation to re#ulate insurance business$ In t&e year !=!5% t&e Life Insurance Companies Act% and t&e 6rovident )und Act valuations of companies s&ould be certified by an actuary$ 1ut t&e act discriminated bet een forei#n and Indian companies on many accounts% puttin# t&e Indian companies at a disadvanta#e$ ,&e first t o decades of t&e t entiet& century sa lot of #ro t& in insurance business$ )rom FF companies in force as Rs$ 55$FF crore% it rose to !>< companies it& total business4 it& total business4in4force as Rs$ Companies Act% !=!5 made it necessary t&at t&e premium rate tables and periodical

5=8 crore in !=B8$ ;urin# t&e mus&roomin# of insurance companies many financially unsound concerns ere also floated &ic& failed miserably$ ,&e Insurance Act !=B8 as
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Impact of service quality on customer loyalty


t&e first le#islation #overnin# not only life insurance but also non4life insurance to provide strict state control over insurance business$ ,&e demand for nationali2ation of life insurance industry Assembly$ @o ever% it in India as made repeatedly in t&e past but it #at&ered momentum in as muc& later on t&e !=t& of Lanuary% !=9<% t&at life insurance ere operatin# in India at t&e time of nationali2ation% !=FF &en a bill to amend t&e Life Insurance Act !=B8 as introduced in t&e Le#islative as nationali2ed$ About !9F Indian insurance companies% !< non4Indian as accomplis&ed in t o sta#esE initially t&e mana#ement of t&e

companies and >9 provident nationali2ation companies

as ta/en over by means of an Ordinance% and later% t&e o ners&ip too by

means of a compre&ensive bill$ ,&e 6arliament of India passed t&e Life Insurance Corporation Act on t&e !=t& of Lune !=9<% and t&e Life Insurance Corporation of India as created on !st .eptember% !=9<% it& t&e ob7ective of spreadin# life insurance muc& more idely and in particular to t&e rural areas it& a vie to reac& all insurable persons in t&e country% providin# t&em adequate financial cover at reasonable cost$ LIC &ad 9 2onal offices% BB divisional offices and 5!5 branc& offices% apart )rom its corporate office in t&e year !=9<$ ,oday LIC functions it& 5"F8 fully computeri2ed branc& offices% !"" divisional offices% > 2onal offices and t&e corporate office$ LIC3s 'ide Area Net or/ covers !"" divisional offices and connects all t&e branc&es t&rou#& a ?etro Area Net or/$ LIC &as tied up it& some 1an/s and .ervice providers to offer on4line premium collection facility in selected cities$ LIC3s EC. and A,? premium payment facility is an addition to customer convenience$ Apart from on4line Kios/s and IJR.% Info Centers &ave been commissioned at ?umbai% A&medabad% 1an#alore% C&ennai% @yderabad% Kol/ata% Ne ;el&i% 6une and many ot&er cities$ 'it& a vision of providin# easy access to its policy&olders% LIC &as launc&ed its .A,ELLI,E .A?6ARK offices$ ,&e satellite offices are smaller% leaner and closer to t&e customer$ ,&e di#itali2ed records of t&e satellite offices future$ ill facilitate any &ere servicin# and many ot&er conveniences in t&e

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Impact of service quality on customer loyalty


CO;P N) PROFILE ,ype- 6ublic limited company or Government4o ned corporation )ounded.eptember !% !=9< @eadquarters- @eadquarters in ?umbai% India *Jarious ot&er locations in India and abroad+ Key people- ,$ .$ Ji7ayan *C&airman+% ;$ K$ ?e&ta and ,&omas ?at&e *?ana#in# ;irectors+ Industry- Life insurance 6roducts- Insurance and 6ension 6lans Employees- Over !"% ""%""" 6arent- NIL .ubsidiaries- LIC @ousin# )inance Limited% etc$ 'ebsite- &ttp-AA $licindia$com

7O R! OF !IRECTORS ?embers On ,&e 1oard Of ,&e Corporation .&ri$ ,$.$ Ji7ayan *C&airman+ .&ri$ ;$K$ ?e&rotra *?ana#in# ;irector 4 LIC+ .&ri$ ,&omas ?at&e ,$ *?ana#in# ;irector 4 LIC+ .&ri$ A$K$ ;as#upta *?ana#in# ;irector 4 LIC+ .&ri$ As&o/ C&a la *)inance .ecretary% ?inistry of )inance% Govt$ of India+ .&ri$ R$ Gopalan *.ecretary% ;epartment of )inancial .ervices% ?inistry of )inance% Govt$ of India$+ .&ri$ Co#es& Lo&iya *C&airman cum ?ana#in# ;irector% GIC of India+ .&ri ;$L$ Ra al *C&airman K ?ana#in# ;irector % ;ena 1an/+ ;r$ .ooranad Ra7as&e/&ran
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Impact of service quality on customer loyalty


.&ri$ ?onis R$ Kid ai Lt$ General Arvind ?a&a7an * Retd$+ Life Insurance Corporation of In'ia 8LIC: Life Insurance Corporation of India *LIC+ is a Government of India enterprise% and is said to be t&e lar#est life insurance company and also t&e lar#est investor of t&e country$ LIC &ad been establis&ed on t&e !st of .eptember% !=9<% after t&e Life Insurance Corporation Act &as been passed by t&e 6arliament of India in t&e same year$ ,&e corporation is aimed at providin# life insurance services primarily to t&e rural masses and t&e socially K economically bac/ ard sections of t&e Indian society$ It also aims at promotin# t&e people for savin# t&eir money% and offers attractive savin#s features alon# policies$ Life Insurance in its modern form came to India from En#land in t&e year !8!8$ Oriental Life Insurance Company stated by Europeans in Calcutta brou#&t up as t&e first life insurance ere company on Indian .oil$ All t&e insurance companies establis&ed durin# t&at period natives ere not bein# insured by t&ese companies$ it& various insurance

it& t&e purpose of loo/in# after t&e needs of European community and Indian

;ISSION?=ISION ;ission HE(plore and en&ance t&e quality of life of people t&rou#& financial security by providin# products and services of aspired attributes resources for economic development$I =ision HA trans4nationally competitive financial con#lomerate of si#nificance to societies and 6ride of India$I LIC of India is t&e one and only public sector life insurance Company in India$ it& competitive returns% and by renderin#

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Impact of service quality on customer loyalty

Pro'ucts of LIC
1.

LIC - Jeevan Anurag

"enefits LIC3s Leevan ANURAG is a it& profits plan specifically desi#ned to ta/e care of t&e educational needs of c&ildren$ ,&e plan can be ta/en by a parent on &is or &er o n life$ 1enefits under t&e plan are payable at prespecified durations irrespective of &et&er t&e Life Assured survives to t&e end of t&e policy term or dies durin# t&e term of t&e policy$ In addition% t&is plan also provides for an immediate payment of 1asic .um Assured amount on deat& of t&e Life Assured durin# t&e term of t&e policy$

ssured "enefit 6ayment of 5": of t&e 1asic .um Assured at t&e start of every year durin# last B policy years before maturity$ At maturity% F": of t&e 1asic .um Assured alon# it& reversionary bonuses clared from time to time on full .um Assured for t&e full term and t&e ,erminal b onus% if any s&all be payable$ )or e(ample% if term of t&e policy is 5" years% 5": of t&e .um assured ill be payable t&e end of t&e !>t&% !8t&% !=t& it& t&e reversionary onuses and t&e year and F": of t&e .um Assured alon#

terminal bonus% if any% at t&e end of t&e 5"t& year$

Deat. "enefit (ayment of an amount e;ual to %um ssured under t.e basic plan immediately on t.e deat. of t.e life assured&

2.

LIC - Jeewan Kisore

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Impact of service quality on customer loyalty

roduct su!!ary: ,&is is an Endo ment Assurance 6lan available for c&ildren of less t&an !5 years of a#e$ ,&e policy may be purc&ased by any of t&e parentA#rand parent$

Co!!ence!ent of ris" cover: ,&e ris/ commences eit&er after 5 years from t&e date of commencement of policy or from t&e policy anniversary immediately follo in# t&e completion of > years of a#e of c&ild% &ic&ever is later$

re!iu!s: 6remiums are payable yearly% &alf4yearly% quarterly or mont&ly t&rou#&out t&e term of t&e policy or till earlier deat& of c&ild$

#onuses: ,&is is a it&4profits plan and participates in t&e profits of t&e Corporation3s life insurance business$ It #ets a s&are of t&e profits in t&e form of bonuses$ .imple Reversionary 1onuses are declared per t&ousand .um Assured annually at t&e end of eac& financial year$ Once declared% t&ey form part of t&e #uaranteed benefits of t&e plan$ A )inal *Additional+ 1onus may also be payable provided policy &as run for certain minimum period$

3.

LIC $ C%ilds Career lan Introduction: /.is plan is specially desi<ned to meet t.e increasin< educational and ot.er needs of <rowin< c.ildren& It pro-ides t.e risk co-er on t.e life of c.ild not only durin< t.e policy term but also durin< t.e e+tended term =i&e& 9 years after t.e e+piry of

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Impact of service quality on customer loyalty


policy term>& number of %ur-i-al benefits are payable on sur-i-in< by t.e life

assured to t.e end of t.e specified durations&

&'tions: Cou may c&oose .um Assured *.$A$+% ?aturity A#e% 6olicy ,erm% ?ode of 6remium payment and 6remium 'aiver 1enefit$

ay!ent of re!iu!s: Cou may pay t&e premiums re#ularly at yearly% &alf4yearly% quarterly or t&rou#& .alary deductions over t&e term of policy$ 6remiums may be paid eit&er for < years or up to 9 years before t&e policy term$

4.

LIC - Jeevan C%%aya roduct su!!ary: ,&is is an Endo ment Assurance plan t&at provides financial protection a#ainst deat& t&rou#&out t&e term of t&e plan$ 1esides payment of .um Assured immediately on deat&% one4fourt& of .um Assured is payable at t&e end of eac& of last four years of policy term &et&er t&e life assured dies or survives t&e term of t&e policy$

re!iu!s: 6remiums are payable yearly% &alf4yearly% quarterly% mont&ly or t&rou#& salary deductions as opted by you t&rou#&out t&e term of t&e policy or till t&e earlier deat&$

5.

LIC - C%ild (uture lan

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Introduction: /.is plan is specially desi<ned to meet t.e increasin< educational1 marria<e and ot.er needs of <rowin< c.ildren& It pro-ides t.e risk co-er on t.e life of c.ild not only durin< t.e policy term us also durin< t.e e+tended term =i&e& 9 years after t.e e+piry of policy term>& number of sur-i-al benefits ae payable on sur-i-in< by t.e life assured to t.e end of t.e specified Durations. &'tions: Cou may c&oose .um Assured *.$A$+% ?aturity A#e% 6olicy ,erm% ?ode of 6remium payment and 6remium 'aiver 1enefit$ ay!ent of re!iu!s: Cou may pay t&e premiums re#ularly at yearly% &alf4yearly% quarterly or t&rou#& .alary deductions over t&e term of policy$ 6remiums may be paid eit&er for < years or up to 9 years before t&e policy term$ 0+ LIC @ Jeevan S#ree

roduct su!!ary: ,&is is an Endo ment Assurance plan offerin# t&e c&oice of many convenient premium4payin# terms$ It provides financial protection a#ainst deat& t&rou#&out t&e term of plan it& t&e payment of maturity amount on survival to t&e end of t&e policy term$

re!iu!s: 6remiums are payable yearly% &alf4yearly% quarterly% mont&ly or t&rou#& .alary deductions% as opted by you% t&rou#&out t&e premium payin# term or till earlier deat&$ Alternatively premium may be paid in one lump sum$

Guaranteed Additions:

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


,&e policy provides for t&e Guaranteed Additions at t&e rate of Rs$ 9"A4 per t&ousand .um Assured for eac& completed year for first five years of t&e policy$

O7JECTI=ES OF LIC .pread Life Insurance idely and in particular to t&e rural areas and to t&e socially it& a vie to reac&in# all insurable persons in

and economically bac/ ard classes reasonable cost$

t&e country and providin# t&em adequate financial cover a#ainst deat& at a ?a(imi2e mobili2ation of people3 savin#s by ma/in# insurance4lin/ed savin#s adequately attractive$ 1ear in mind% in t&e investment of funds% t&e primary obli#ation to its policy&olders% &ose money it &olds in trust% as a t&e community as a attractive return$ Conduct business it& utmost economy and it& t&e full reali2ation t&at moneys belon# to t&e policy&olders$ Act as trustees of t&e insured public in t&eir individual and collective capacities$ ?eet t&e various life insurance needs of t&e community t&at c&an#in# social and economic environment$ Involve all people courtesy$ R)*+RIC+IV) C&N,I+I&N* or/in# in t&e Corporation to t&e best of t&eir capability in it& furt&erin# t&e interests of t&e insured public by providin# efficient service ould arise in t&e it&out losin# si#&t of t&e interest of t&e community ell as national priorities and obli#ations of &oleE t&e funds to be deployed to t&e best advanta#e of t&e investors as &ole% /eepin# in vie

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


?inimum a#e at entry ?a(imum a#e at entry ?a(imum a#e at maturity ?inimum 6olicy ,erm ?a(imum 6olicy term ?inimum .um Assured ?a(imum .um Assured *6olicies -!8 years *completed+ -<" years *nearest birt&day+ ->" years *nearest birt&day+ -9 years -B9 years -Rs$59%""%"""A4 - No Upper Limit

ill be issued in multiples of Rs$!""%"""A4 for .ums Assured

more t&an t&e minimum .um Assured+ - Cearly% @alf4yearly K .in#le 6remium ?ode of premium payment

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

A'AR;. AN; AC@EIJE?EN,-

CN7C Aaa9 Consumer aAar's ,4*4

Rea'er !iBest Truste' 7ran' Insurance cateBory ,4*4

OUTLOOC ;ONE) && N!T= PROFIT " R! ,443 in D 7EST LIFE INSURER C TE6OR) D

"orl' 7ran' ConBress Aar'

6ol'en PeacocE Innovative Pro'uct ? Service Aar' & ,443


GURU NANAK COLLEGE

SI P CIFIC >R; ConBress5 ,443 Aar' for INNO= TI=E >R


Page 22

Impact of service quality on customer loyalty


PR CTICES

Loyalty Aar' @ ,443

N!T= Profit 7usiness Lea'ers#ip Aar' ,442

IN!)Fs Silver Aar' for 7est Corporate Film

N SCO; IT USER Aar' ,442

7usiness Super (ran' In'ia ,443

SI 7R N! CON6RESS 7R N! LE !ERS>IP " R! 5,442

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

S+"+O+T+ N L)SIS A proper .$'$O$,$ analysis of LIC &as also been conducted to /no position% #ro t&% and upcomin# future and prospective of t&e company$ STREN6T>S LIC is on !st ran/ amon# t&e Insurance player$ Lon#4term plans of LIC are t&e main stren#t&$ After sales services$ 6roducts cost are very lo $ Customer does not believe on private company$ better about t&e

"EECNESS Lo interest rate is t&e ea/ness of t&e LIC company

OPPORTUNITIES Good brand promotion$ !A5nd4 : insurance &as been covered$ T>RE TS ,&ere are many competitors In t&e mar/et$ Entry of 6rivate Insurance ban/s$

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Impact of service quality on customer loyalty


;arEet S#are N ;E OF T>E PL )ER ; RCET S> RE 8G: ; RCET S> RE N L)SIS Life Insurance Corporation of India ICICI 6rudential Life Insurance Co Ltd 1a7a7 Allian2 Life Insurance Co Ltd .1I Life Insurance Co Ltd Reliance Life Insurance Co Ltd @;)C .tandard Life Insurance Co Ltd 1irla .un Life Insurance Co Ltd ?a( Ne Cor/ Life Insurance Co Ltd Kota/ ?a&indra Old ?utual Life Insurance Ltd Aviva Life Insurance Company India Ltd Ot&ers PercentaBe <>: =$"": <$B<: F$9": 5$9": 5$88: 5$"": !$99: !$"": !$5": 5$"!:

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


C> PTER -%&T>EORETIC L SPECTS OF T>E STU!) !efinition of service Huality ?%er-ice ;uality is a focused e-aluation t.at reflects t.e customer@s perception of specific dimensions of ser-iceA reliability1 responsi-eness1 assurance1 Bmpat.y1 tan<ibles& %atisfaction1 on ot.er .and1 is more inclusi-eA it is influenced by perceptions of ser-ice ;uality1 product ;uality1 and price as well as situational factors and personal factors& ,&e five service dimensions are

T N6I7LES%& Appearance of p&ysical facilities% equipment% personnel% and communication materials

7ILIT) Ability to perform t&e promised service dependably and accurately

RESPONSI=ENESS 'illin#ness to &elp customers and provide prompt service

SSUR NCE Kno led#e and courtesy of employees and t&eir ability to convey trust and confidence

E;P T>) Carin#% individuali2ed attention t&e firm provides its customers

.tron# customer service is a business essential$ 6rovidin# it isn3t as difficult if you and your employees ac&ieve t&ese !" basic rules!$ Commit to Huality service+
GURU NANAK COLLEGE Page 27

Impact of service quality on customer loyalty


In LIC of India Everyone devoted to creatin# a positive e(perience for t&e customer$ Al ays try to #o above and beyond customer e(pectations$ 5$ CnoAle'Be a(out pro'ucts+ Convey an articulate and in4dept& /no led#e of products and services to customer trust and confidence$ ,&ey /no in

t&eir company3s products% services% and

return policies inside and out$ Also try to anticipate t&e types of questions t&at customers ill as/$ Anyone can easily Update and amend t&eir )AN pa#e frequently$ B$ CnoA your customers+ ,&ey can try to learn everyt&in# about t&e customers in order to tailor t&eir service approac& to customers3 needs and buyin# &abits$ ,al/ to customers about t&eir e(perience it& t&e company% and listen t&eir complaints$ In t&is ay% t&ey can #et to t&e root of customer dissatisfaction$ F$ Treat people Ait# courtesy an' respect+ Employee or t&e a#ents of t&e LIC of India al ays treat or react customers$ '&et&er it3s by email% p&one% p&rases O P.orry to /eep you meetin#$ ,&is interaction leaves an impression and PIt3s been a pleasure &elpin# youP etc$ 9$ Never arBue Ait# a customer+ ,&ey /no very ell t&at t&e customer isn3t al ays ri#&t$ @o ever% t&ey do not to fi( it$ ill do business it& a company a#ain if it& respect to t&eir

ritten correspondence% or a face4to4face it& t&at customer$ Use conciliatory

aitin#%P P,&an/s for your order%P PCou3re elcome%P

focus on t&e missteps of a particular situationE instead% concentrate on &o Researc& s&o s t&at > out of !" customers t&at business resolves a complaint in t&eir favor$ <$ !onIt leave customers in lim(o+ LIC a#ents or employee Repairs% callbac/s% and emails &andled ur#ency$ ,&ey /no Customers
GURU NANAK COLLEGE

it& a sense of

ant immediate resolution% and if t&ey can #ive it to


Page 28

Impact of service quality on customer loyalty


t&em% t&ey ill probably in t&eir repeat business$ Researc& s&o s t&at t&e instance

of repeat business #oes up to =9 percent &en complaints are resolved on t&e spot$ 1+ lAays provi'e A#at you promise+ ,&ey /no very ell t&at if t&ey fail to do t&is t&an t&ey ill lose bot& credibility

and customers$ If t&ey #uarantee a quote

it&in 5F &ours% t&ey quote out in a day or

less$ &en t&ey ne#lect to ma/e #ood on t&eir promise% apolo#i2e to t&e customer and offer some type of compensation% suc& as a discount or free delivery$ 2+ ssume t#at customers tell t#e trut#+ Even t&ou#& it may appear t&at customers lie to manipulate a situation to t&eir advanta#e% t&ey &ope t&at it is t&eir advanta#e to #ive t&em t&e benefit of t&e doubt$ ,&e ma7ority of customers don3t li/e to complainE in fact% t&ey ay O per&aps all t&e ill #o out of t&eir ay to a competitor O to avoid it$ If t&ey &ear un&appy

rumblin#s from t&eir customers% ta/e t&eir complaints to &eart and do t&eir best to appease t&eir dissatisfaction$ 3+ Focus on maEinB customers not on sales+ .alespeople% especially t&ose &o #et paid on commission% sometimes focus on t&e

volume instead of on t&e quality of t&e sale$ 1ut an a#ent or employee of LIC #ive more important to customer3s business is more t&an to close a sale$ Researc& s&o s t&at it costs si( times more to attract a ne customers$ *4+ ;aEe it easy to (uy+ ,&e buyin# e(perience in t&eir store% on 'eb site% or t&rou#& catalo# s&ould be as easy as possible$ 6eople can3t find unnecessary paper or/ and forms$ ,&ey &elp people to find &at t&ey need% e(plain &o products or/$ "#at is customer loyaltyQ customer t&an it does to /eep an e(istin# ay to find ne one$ ?oreover% &appy customers are t&e best and most effective

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Impact of service quality on customer loyalty


,&e term customer loyalty is used to describe t&e be&avior of repeat customers% as company a #reat service by offerin# favorable ell as

t&ose t&at offer #ood ratin#s% revie s% or testimonials$ .ome customers do a particular ord of mout& publicity re#ardin# a product% tellin# friends and family% t&us addin# t&em to t&e number of loyal customers$ @o ever customer loyalty includes muc& more$ It is a process% a pro#ram% or a #roup of pro#rams #eared to ard /eepin# a client &appy so &e or s&e ill provide more business$ Customer loyalty can be ac&ieved in some cases by offerin# a quality product #uarantee$ Customer loyalty is also ac&ieved t&rou#& free offers% coupons% lo on financin#% &i#& value trade4ins% e(tended it& a firm interest rate

arranties% rebates% and ot&er re ards and

incentive pro#rams$ ,&e ultimate #oal of customer loyalty pro#rams is &appy customers &o ill return to purc&ase a#ain and persuade ot&ers to use t&at company0s products or services$ ,&is equates to profitability% as ell as &appy sta/e&olders ,&e /ey to a successful business is a steady customer base$ After all% successful businesses typically see 8" percent of t&eir business come from 5" percent of t&eir customers$ ,oo many businesses ne#lect t&is loyal customer base in pursuit of ne since t&e cost to attract ne relations&ip payoff$ @ere are ten ays to build customer loyalty1.

customers$ @o ever% ill certainly

customers is si#nificantly more t&an to maintain your

it& e(istin# ones% your efforts to ard buildin# customer loyalty

Co!!unicateBmployees or t.e a<ent of t.e LIC of t.e India sent an email ne sletter% mont&ly flier% a reminder card for a tune up% or a &oliday #reetin# card% reac& out to t&eir teddy customers$

2.

Custo!er *erviceLIC of India #o t&e e(tra distance and meet t&eir customer needs$ ,&ey also ,rain t&e staff to do t&e same$ Customers remember bein# treated ell$

3.

)!'loyee Loyalty-

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Loyalty or/s from t&e top do n$ t&ey are loyal to t&eir employees% t&ey ill feel

positively about t&eir 7obs and pass t&at loyalty alon# to your customers$
4.

)!'loyee +raining/.ey train t&eir employees in t&e manner t&at t&ey ant t&em to interact it&

customers$ Empo er employees to ma/e decisions t&at benefit t&e customer$


5.

Custo!er Incentives/.ey Give customers a reason to return to t&eir business$ )or instance% t&ey #ive bonus to t&eir customers or offer free #ift coupons etcE

6.

roduct Awareness/.ey Kno &at steady customers purc&ase and /eep t&ese products to sell t&em $

and t&ey also add ot&er products andAor services t&at accompany or compliment t&e products t&at your re#ular customers buy re#ularly$ And t&ey are sure about t&at t&eir staff understands everyt&in# about t&eir products$
7.

Relia.ility/.ey always reliable to t.eir customers- If somet&in# #oes ron#% t&ey immediately

inform to t&eir customers and compensate t&em for t&eir inconvenience$


8.

#e (le/i.le/.ey are always ready to solve customer problems or complaints to t&e best of t&eir ability$ And provide accurate result in a s&ort time period$

9.

eo'le over +ec%nology,&e &arder it is for a customer to spea/ to a &uman bein# &en &e or s&e &as a

problem% t&e less li/ely it is t&at you ill see t&at customer a#ain$
10.

Know +%eir Na!es,&ey /no t&e names of re#ular customers or at least reco#ni2e t&eir faces$

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Impact of service quality on customer loyalty


Relations#ip 7etAeen Service Huality an' Customer Loyalty In various studies t&e relations&ip bet een service quality and customer preference loyalty &ad been e(amined *1ouldin#% Kalra% .taelin% K Reit&aml% !==BE Cronin K ,aylor% !==5+$ In t&eir study Cronin and ,aylor *!==5+ focused solely on repurc&ase intentions% 1ouldin# et al$ *!==B+ focused on t&e elements of repurc&asin# as ell as t&e &ereas illin#ness to

recommend$ In t&e study by Cronin and ,aylor service quality did not appear to &ave a si#nificant *positive+ effect on repurc&ase intentions *in contrast to t&e si#nificant positive impact of satisfaction on repurc&ase intention+% recommend$ &ereas 1ouldin# et al$ *!==B+ found illin#ness to positive relations&ips bet een service quality and repurc&ase intentions and

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

C> PTER .%&RESE RC> OF T>E STU!)

!efinition%& HResearc& is an or#ani2ed inquiry desi#ned and carried out to provide information for solvin# problems$I 4 )red Kerlin#er$ 4 HResearc& is careful inquiry or e(amination to discover ne information or relations&ips and to e(istin# /no led#e$I 4 )rancis Rammel$

O7JECTI=E OF STU!) ,&e main ob7ective of t&is study is to study t&e consumer buyin# be&avior re#ardin# cars$ ,o /no of LIC$ ,o /no &ic& type of payment t&ey prefer &ile purc&asin# 6olicy of LIC$ &ic& criteria consumer ta/e in to consideration &ile purc&asin# 6olicy

Consumer attitude to ards t&e 6olicy of LIC$ Assessin# t&e main criteria to ma/e product of LIC more mar/etable$ Scope as t#e Stu'y ,o /no and understand t&e different pensions plans as policy as t o leadin# insurance and in &at manner t&ey

company in insurance sector by study and analysis t&at &o attract t&e customers of different a#e and salary #roups+

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Impact of service quality on customer loyalty


LI;IT TION OF STU!) ,&ere are number of limitations but from t&em fe are as belo $ .ome respondent may not #ive proper response t&an it is totally useless$ ,&e limit for t&e pro7ect is only 5 mont&s$ ,&e study is not cover &ole population it is limited by t&e company only for east 2one of .urat city$

RESE RC> CO;PONENTS%& .+* Researc# 'esiBn%& Researc& desi#n is t&e plan for collectin# t&e information related to t&e study$ Researc& desi#n e(plains t&e met&ods t&at are used for collectin# t&e information$ ,&e researc& desi#n ill focus attention on t&e different met&ods t&at are used for collection of t&e data$ Also it ill &elp to solve t&e problem$ ;ifferent forms of collectin# t&e data ill be tasted in t&e researc& desi#n$ In t&is case% survey met&od is used to collect t&e necessary data in t&e survey met&od% t&e personal intervie is used to collect t&e information from t&e respondents% and questionnaires are used$ ,&e respondents are visited personally% and t&e detail information is collected related to t&e study$ ,&e question mainly focuses attention on t&e consumer be&avior to fulfill t&e ob7ective of t&e study$ C#oice of t#e researc# 'esiBn%& A researc& desi#n specifies t&e met&ods and procedure for conductin# a particular study$ 1roadly t&e researc& can be #rouped in to t&ree cate#ories$ E(ploratory researc& ;escriptive researc& Casual researc&

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Impact of service quality on customer loyalty


!$ EJploratory Researc# !esiBn% & ,&e ma7or emp&asis in e(ploratory Researc& ;esi#n is on discovery of ideas and insi#&ts$ 5$ !escriptive Researc# !esiBn% 4 ,&e descriptive Researc& ;esi#n study is typically concerned it& determinin# t&e frequency it& &ic& somet&in# occurs or t&e

relations&ip bet een t o variables$ B$ Causal Researc# !esiBn% 4 A Causal Researc& ;esi#n is concerned determinin# cause and effect relations&ip$ it&

In my study% I &ave used descriptive researc& met&od to collect necessary information related to t&e study$

.+, ! T COLLECTION ;ET>O!S%& T)PE OF ! T COLLECTE! ,&ere are t o types of data used$ ,&ey are primary and secondary data$ 6rimary data is defined as data t&at is collected from ori#inal sources for a specific purpose$ .econdary data is data collected from indirect sources$ PRI; R) SOURCES ,&ese include t&e survey or questionnaire met&od% telep&onic intervie personal intervie met&ods of data collection$ SECON! R) SOURCES ,&ese include boo/s% t&e internet% company broc&ures% product broc&ures% t&e company ebsite% competitor3s ebsites etc% ne spaper articles etc$ SamplinB unit as ell as t&e

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


In my study t&e mar/et survey as conducted in surat city$ Conducted I &ave covered different areas under my study$ ;ifferent areas li/e /amre7% amroli% varac&&a K ot&er areas of t&e city are covered by me durin# t&e study$ S ;PLIN6 .amplin# refers to t&e met&od of selectin# a sample from a #iven universe dra for study$ it& a vie to

conclusions about t&at universe$ A sample is a representative of t&e universe selected

Convenience samplinB is used in e(ploratory researc&

&ere t&e researc&er is interested in

#ettin# an ine(pensive appro(imation of t&e trut&$ As t&e name implies% t&e sample is selected because t&ey are convenient$ ,&is non probability met&od is often used durin# preliminary researc& efforts to #et a #ross estimate of t&e results% it&out incurrin# t&e cost or time required to select a random sample$ *.ource- www&statpac&com+

S ;PLE SI<E ,&e sample si2e for t&e survey conducted as /4 respon'ents+

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

C>+ @ / ! T

N L)SIS N! FIN!IN6S

N !+ ;o you &ave 6roduct of LICQ 6articular Ces No Number =" !" 6ercenta#e =": !":

Interpretation%& )rom t&e above c&art e can say t&at =": customer &ave product of LIC and !": customer e can say t&at t&e trust of t&e people to ards

&ave product of ot&er companies% from t&at

LIC is too muc& &i#& as compared to ot&er players in insurance sector$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

N 5+ &ic& type of insurance do you &aveQ

6articular ?ediclaime Life Insurance Ot&ers

Number B" <9 9

6ercenta#e B": <9: 9:

Interpretation%& )rom t&e above c&art e can say t&at B": customers &ave ?ediclaime and <9: customer &ave life insurance and 9: customer &ave ot&er type of insurance$ ,&us e can say t&at people are ready or prepared in advance for competin# immediate circumstances &ic& ill arise in t&eir future life$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Q -: EJpectation%& It s#oAs t#e eJtent to A#ic# you t#inE insurance company 8Life: s#oul' posses folloAinB featuresK TanBi(les EJcellent Life Insurance Company Aill #ave mo'ern eHuipment+ * , . / Scores

;aterials associate' Ait# service 8suc# as forms5 payment5 (an'aBes etc+++: Aill (e visually appealinB at an eJcellent company+

veraBe TanBi(ility

Perception%& It s#oAs t#e eJtent to A#ic# you t#inE&insurance company 8life: s#oul' posses folloAinB featuresK TanBi(les LIC #as mo'ern looEinB eHuipment * ,

Scores

;aterials associate' Ait# service 8suc# as forms5&payment5&(an'aBes etc+++: Aill (e visually appealinB in LIC company+

veraBe TanBi(ility

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

?O;ERN ENUI6?EN, ?A,ERIAL

AJERAGE ED6EC,A,ION 5F$F> 5F$<

AJERAGE 6ERCE6,ION 5F$F 5F$8>

;I))ERENCE 4"$"> "$5>

Interpretation%& )rom t&e above c&art e can say t&at as t&ere is not muc& difference bet een perception perceived by t&e company and t&e e(pectation fulfillment of customers$ e can say t&at company is successful in providin# customers value services as per t&e e(pectations of customers$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Q .: EJpectation "#en companies 'o somet#inB (y a certain time5 t#ey 'o+ "#en customer #as a pro(lem5 company Aill s#oA sincere interest in solvinB it+ EJcellent firms Aill perform t#e activity of issuinB c#eHue of sum assure' riB#t t#e first time+ Life insurance company Aill provi'e t#e services at t#e time t#ey promise to 'o so+ EJcellent life insurance company Aill insist on error&free recor'+ Relia(ility * , . /

veraBe Relia(ility

Perception "#en companies 'o somet#inB (y a certain time5 t#ey 'o+

Relia(ility * , . /

"#en customers 8you: #ave a pro(lem5 LIC company Aill s#oA sincere interest in solvinB it+ LIC Company Aill perform t#e activity of issuinB c#eHue of sum assure' riB#t t#e first time+ LIC Company Aill provi'e t#e services at t#e time it promises to 'o so+ LIC company Aill insist on error&free recor'+

veraBe Relia(ility

GURU NANAK COLLEGE

Page 41

Impact of service quality on customer loyalty

=ER 6E Time punctuality Pro(lem solution issue of c#eHue fulfillment of promise error free recor' Interpretation%& & perception 59$< 59$9B 5B$"> 5< 5<$=B

=ER 6E & EJpectation 59$=B 5<$F 5<$5> 59$!B 5>$">

!IFFERENCE 4"$BB 4"$8> 4B$5 "$8> 4!$"F

)rom t&e above c&art e can say t&at as t&ere is not muc& difference bet een perception perceived by t&e company and t&e e(pectation fulfillment of customers$ e can say t&at company is successful in providin# customers value services as per t&e e(pectations of customers$ Only incase of issue of c&eque company is unable to provide satisfactory services to e(tent$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Q+/: EJpectation Responsiveness * , . /

Employees of eJcellent life insurance firms Aill tell t#e customers A#en services Aill (e performe'+ Employees of eJcellent life insurance firms Aill Bive prompt services to customers+ Employees of eJcellent life insurance firms Aill alAays (e AillinB to #elp customer+ Employees of eJcellent life insurance firms Aill never (e too (usy to respon' to customersI reHuests+

veraBe Responsiveness

Responsiveness Employees of LIC company Aill tell t#e customers A#en services Aill (e performe'+ Employees of LIC Company Aill Bive prompt services to customers+ Employees of LIC Company Aill alAays (e AillinB to #elp customers+ Employees of LIC company Aill never (e too (usy to respon' to customersI reHuests+ * , . /

veraBe Responsiveness

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

E?6LOCEE. IN)OR?E; ,O CU.,O?ER. E?6LOCEE. GIJE 6RO?6, .ERJICE. E?6LOCE. 'ILLING ,O @EL6 CU.,O?ER E?6LOCEE. NEJER ,O 1U.C ,O RE.6ON; Interpretation%&

AJERAGE ED6EC,A,ION 55$8 59$!B 5B$< 5=$F

AJERAGE 6ERCE6,ION 5B$=B 55$8> 5=$9B 5=$F

;I))ERENCE "$9 45$5< 9$=B "

As per above c&art e can say t&at as compared to ot&er factors t&e bac/ office &ic& is also /no n as employee &elp des/ is not or#ani2ed enou#& to &elp t&e customers and solve t&eir quarries 5FA> and are not able to provide t&em a value services$

Q 0: EJpectation
GURU NANAK COLLEGE

ssurance
Page 44

Impact of service quality on customer loyalty

,&e be&avior of employees in e(cellent life insurance firms ill instill confidence in customers$ Insured customers of e(cellent life insurance firms ill feel safe it& insurance services$ Employees in e(cellent life insurance firms ill be consistently courteous to customer$ Employees in e(cellent life insurance firms ill &ave t&e /no led#e to ans er t&e customers3 questions$

veraBe ssurance

Perception T#e (e#avior of employees in LIC company Aill instill confi'ence in customers+ Insure' customers of LIC company Aill feel safe Ait# insurance services+ Employees in LIC company Aill (e consistently courteous to customers+ Employees in LIC company Aill #ave t#e EnoAle'Be to ansAer t#e customersI Huestions+ veraBe ssurance

ssurance * , . /

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

1E@AJIOUR O) E?6LOCEE. .A)E 'I,@ ,@E IN.URANCE COUR,EOU. ,O CU.,O?ER. KNO'LE;GE ,O AN.'ER Interpretation%&

AJERAGE ED6EC,A,ION 5!$<> 5F$BB 55$F 5!$8>

AJERAGE 6ERCE6,ION 5"$8 55$8 5!$< 5"$!B

;I))ERENCE 4"$8> 4!$9B 4"$8 4!$>F

)rom t&e above c&art e can say t&at employees be&avior to ards customers it& relation to various services is not satisfactory and t&eir response is not solvin# t&e quires and #ivin# /no led#e to various customers$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Q 1: EJpectation E(cellent company individual attentions$ Empat#y ill #ive customers ! 5 B F 9

E(cellent company ill &ave or/in# &our convenient for all t&e customers E(cellent company ill &ave employees #ive customers personal attention$ &o

E(cellent company ill &ave t&eir customers3 best interest at &eart$ ,&e employees of e(cellent companies ill understand t&e specific needs of t&eir customers$

veraBe Empat#y

Perception LIC company on customers$

Empat#y ill #ive individual attentions ! 5 B F 9

LIC company ill &ave or/in# &our convenient for all its customers$ LIC company ill &ave employees customers personal attention$ &o #ive

LIC company ill &ave t&eir customers3 best interest at &eart$ ,&e employees of LIC company ill understand t&e specific needs of t&eir customers$

veraBe Empat#y

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

IN;IJI;UAL A,,EN,ION CONJENIEN, ,O CU.,O?ER. CU.,O?ER 6ER.ONEL A,,EN,ION 1E., IN,ERE., A, @EAR, UN;ER.,AN; ,@E .6ECI)IC NEE;. Interpretation%&

AJERAGE ED6EC,A,ION 59 5F$"> 5B$!B 5F$< 55$<>

AJERAGE 6ERCE6,ION 5B$9B 55$< 55$5 5B$F> 5!$F

;I))ERENCE 4!$F> 4!$F> 4"$=B 4!$!B 4!$5>

)rom t&e above c&art e can say t&at unli/e ot&er services and t&eir personal attention facilities life insurance companies a#ents and employees are unable to provide t&e personal needs and li/es of different customers at up to t&e mar/ level$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Q 2: SER=QU L SCORE CRI,ERIA ,ANGI1ILI,C RELIA1ILI,C RE.6ON.IJENE.. A..URANCE E?6A,@C ,O,AL 'ei#&t !" B" 5" !" B" !"" 'ei#&ted Avera#e score !" 45>$B 5"$8 4!5$5 4B>$9 4F<$5

Avera#e of 'ei#&ted Avera#e score S 'ei#&ted Avera#e score 9 S *4 F<$5 A 9+ S 4=$5F

As per above c&art e can say t&at as services can only be felt and not be touc&ed tan#ibility secures t&e least avera#e as compared to ot&ers and even satisfaction every time$ e cannot assure t&e same

Q 3: >oA lonB #ave you (een t#e customer of t#is company$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

Sr+ No+ *+ ,+ -+ .+

Particular ! to 5 Cears 5 to F Cears F to < Cears < to !" Cears

PercentaBe !"$"": !B$BB: F5$55: BF$F9:

Interpretation%& )rom t&e above c&art e can say t&at customer believe in &avin# s&ort term policies from t&is company and also lon# term policies li/e life insurance policies and ot&ers$

Q *4: I #ave receive' a proper 'emonstration on t#e pro'uct t#at you (ouB#t (y t#e concerne' professional .tron#ly a#ree A#ree Avera#e ;isa#ree .tron#ly dis a#ree

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


9 F B 5 !

Sr+ No+ *+ ,+ -+ .+ /+ .tron#ly A#ree A#ree Avera#e ;isa#ree .tron#ly ;isa#ree

Particular

PercentaBe BF$FF: 5B$BB: !<$<>: !B$BB: !5$55:

Interpretation%& )rom t&e above analysis e can say t&at as lic services is concerned it& t&e life of various respondents t&ey need to be made satisfied for t&e purc&ase of services so t&e concerned professional are able to reac& t&e e(pectation level of various customers$
GURU NANAK COLLEGE Page 51

Impact of service quality on customer loyalty


Q **: t#e time is taEen (y LIC for 'ocumentation process is reasona(le+ StronBly aBree / Bree . veraBe !isaBree , StronBly 'is aBree *

Sr+ No+ *+ ,+ -+ .+ /+ .tron#ly A#ree A#ree Avera#e ;isa#ree .tron#ly ;isa#ree

Particular

PercentaBe B8$8=: 59$9<: !B$BB: !5$55: !"$"":

Interpretation%& )rom t&e above c&art e can say t&at because of #reat tec&nolo#ies used in corporate orld t&e time ta/en to #et any service is quiet easier as compare to past era$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Q *,: I liEe to purc#ase 'ifferent policy from t#is company aBain+ StronBly aBree / Bree . veraBe !isaBree , StronBly 'is aBree *

Particular Sr+ No+ *+ ,+ -+ .+ /+ .tron#ly A#ree A#ree Avera#e ;isa#ree .tron#ly ;isa#ree

PercentaBe F9$9<: 58$8=: !8$8=: "F$FF: "5$55:

Interpretation%&)rom t&e above c&art e can say t&at as people are concerned of t&eir near and dear ones and family members t&ey are al ays interested to ta/e up a various ne policies concerned it& t&eir life3s so t&at t&ey fell insured and t&e ris/ of payin# &i#& amount durin# any mis&ap is almost reduced$ Q *-: I Aoul' liEe to recommen' pro'ucts of t#is company to my frien's an' relatives+ StronBly aBree
GURU NANAK COLLEGE

Bree

veraBe

!isaBree

StronBly 'is aBree


Page 53

Impact of service quality on customer loyalty


, / . *

Sr+ No+ *+ ,+ -+ .+ /+ .tron#ly A#ree A#ree Avera#e ;isa#ree .tron#ly ;isa#ree

Particular

PercentaBe F"$"": B"$"": !!$!!: "8$8=: !"$"":

Interpretation%& )rom t&e above #rap& e can say t&at as e &ave seen above t&at people are satisfied even for after sale services and t&ey t&in/ of buyin# its various products and services t&at3s &y t&ey ould li/e to recommend its products to t&eir friends and relatives )IN;ING.

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Impact of service quality on customer loyalty


?ost of t&e respondents &ave LIC policy because t&ey are concern about t&eir future and t&eir familyIn my study I found t&at most of t&e respondents &ave life insurance policy t&at is <9: &ave considered t&at because t&ey t&in/ if somet&in# &appens to t&em% t&eir family doesn3t &ave to ta/e any &elp for survival t&rou#& ot&ers$ '&ile researc&in# I found t&at t&ere are many consumers of LIC policy and most of t&em &ave consume from F to < years before$I found t&at t&e e(pectation of t&e consumer are mostly satisfied by t&e company because t&e company #ives best to t&eir customers$;ocumentation of any insurance policy ta/es t&e most time but &ere I found 99: of t&e respondents a#rees t&at it ta/e less time &ile !": doesn3t a#ree it& it ,&ere is not muc& difference bet een perception perceived by t&e company and t&e e(pectation fulfillment of customers$ e can say t&at company is successful in providin# customers value services as per t&e e(pectations of customers$ 'e can say t&at company is successful in providin# customers value services as per t&e e(pectations of customers$ Only incase of issue of c&eque company is unable to provide satisfactory services to e(tent$ lic services is concerned it& t&e life of various respondents t&ey need to be made satisfied orld t&e time

for t&e purc&ase of services so t&e concerned professional are able to reac& t&e e(pectation level of various customers$because of #reat tec&nolo#ies used in corporate ta/en to #et any service is quiet easier as compare to past era$people are concerned of t&eir near and dear ones and family members t&ey are al ays interested to ta/e up a various ne policies concerned it& t&eir life3s so t&at t&ey fell insured and t&e ris/ of payin# &i#& amount durin# any mis&ap is almost reduced$ people are satisfied even for after sale services and t&ey t&in/ of buyin# its various products and services t&at3s relatives$ &y t&ey ould li/e to recommend its products to t&eir friends and

C>+ @ 0 SU66ESTION )ollo in#s are some of t&e su##estion #iven by t&e customer of LIC for serve people in an improved ay$6eople su##est t&at LIC s&ould &ave increase t&eir interest rate$

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


6eople su##est t&at LIC s&ould &ave advertise its product it& ell /no n brand ambassador in order to increase its sales$6eople su##est t&at LIC s&ould &ave provided a #ood services after sale of product or policy of it$ SU66ESTIONS FOR I;PRO=E;ENT Advertise about t&e company and its products G it motivates individuals to purc&ase insurance Create a positive perception about insurance$ .pea/ about t&e #ood features a plan offers li/e &i#& returns% life cover% ta( benefits% inde(ation% accident cover &ile prospectin# customers ,ry to sell t&e productAplan advisors benefit is &i#&er Improve t&e efficiency in operations 1rin# out policies it& small premiums payable for s&ort periods of time G Rs$ 9""" &ic& t&e consumer requires and not t&e plan &ere t&e

G Rs$ !"""" per annum for !" years Attract t&e yout& of India it& &i#&er returns on investment as returns are t&e

motivatin# factor &ic& influence purc&ase of insurance 6romote insurance in colle#es and corporate &ouses .&ould &ave partial it&dra als from t&e first year on ards ,ap t&e rural mar/et &ere t&ere is lar#e potential ;iversify product portfolio ?a/e products more strai#&t for ard G reduce comple(ities+
GURU NANAK COLLEGE Page 56

Impact of service quality on customer loyalty


C>+ @ 1 CONCLUSION )rom t&e report I &ave concluded t&at most of t&e respondent &ave ta/en t&e policy of LIC but t&ey still lac/in# in providin# #ood service after sales Investment in LIC is more preferable because it is #overnment oriented and it is follo rules and re#ulation of IR;A$

Nuestioner for customers Accordin# to your opininon please #ive t&e ran/ to follo in# question$ Ran/in# detail and code are #iven belo -4 !etail .tron#ly ;isa#ree ;isa#ree Avera#e A#ree .tron#ly A#ree EJpectation EJpectation%& It s#oAs t#e eJtent to A#ic# you t#inE insurance company 8Life: s#oul' posses folloAinB featuresK TanBi(les E(cellent Life Insurance Company ill &ave modern equipment$ ! 9 5 B F Co'e "! "5 "B "F "9 Scores

?aterials associated it& service *suc& as forms% payment% banda#es etc$$$+ ill be visually appealin# at an e(cellent company$

! 9

veraBe tanBi(ility Relia(ility '&en companies do somet&in# by a certain


GURU NANAK COLLEGE

F
Page 57

Impact of service quality on customer loyalty


time% t&ey do$ 9

'&en customer &as a problem% company ill s&o sincere interest in solvin# it$

! 9

E(cellent firms ill perform t&e activity of issuin# c&eque of sum assured ri#&t t&e first time$

! 9

Life insurance company ill provide t&e services at t&e time t&ey promise to do so$

! 9

E(cellent life insurance company ill insist on error4free record$

! 9

veraBe Relia(ility

Responsiveness

Employees of e(cellent life insurance firms ill tell t&e customers &en services ill be performed$

! 9

Employees of e(cellent life insurance firms ill #ive prompt services to customers$
GURU NANAK COLLEGE

F
Page 58

Impact of service quality on customer loyalty


9

Employees of e(cellent life insurance firms ill al ays be illin# to &elp customer$

! 9

Employees of e(cellent life insurance firms ill never be too busy to respond to customers3 requests$

! 9

veraBe Responsiveness

ssurance ,&e be&avior of employees in e(cellent life insurance firms ill instill confidence in customers$ ! 9 5 B F

Insured customers of e(cellent life insurance firms ill feel safe it& insurance services$

! 9

Employees in e(cellent life insurance firms ill be consistently courteous to customer$

! 9

Employees in e(cellent life insurance firms ill &ave t&e /no led#e to ans er t&e customers3 questions$
GURU NANAK COLLEGE

! 9

Page 59

Impact of service quality on customer loyalty

veraBe ssurance Empat#y

E(cellent company ill #ive customers individual attentions$

! 9

E(cellent company ill &ave or/in# &our convenient for all t&e customers

! 9

E(cellent company ill &ave employees &o #ive customers personal attention$

! 9

E(cellent company ill &ave t&eir customers3 best interest at &eart$ 9

,&e employees of e(cellent companies ill understand t&e specific needs of t&eir customers$

! 9

veraBe Empat#y

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


Perception Perception%& It s#oAs t#e eJtent to A#ic# you t#inE&insurance company 8life: s#oul' posses folloAinB featuresK TanBi(les LIC &as modern loo/in# equipment 9 ! 5 B F Scores

?aterials associated it& service *suc& as forms%4payment%4banda#es etc$$$+ ill be visually appealin# in LIC company$

! 9

veraBe tanBi(ility Relia(ility '&en companies do somet&in# by a certain time% t&ey do$ ! 9 5 B F

'&en customers *you+ &ave a problem% LIC company ill s&o sincere interest in solvin# it$

! 9

LIC Company ill perform t&e activity of issuin# c&eque of sum assured ri#&t t&e first time$

! 9

LIC Company ill provide t&e services at t&e time it promises to do so$

! 9

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

LIC company ill insist on error4free record$ 9

veraBe Relia(ility Responsiveness Employees of LIC company ill tell t&e customers &en services ill be performed$ ! 9 5 B F

Employees of LIC Company ill #ive prompt services to customers$

! 9

Employees of LIC Company ill al ays be illin# to &elp customers$

! 9

Employees of LIC company ill never be too busy to respond to customers3 requests$

! 9

veraBe Responsiveness ssurance ,&e be&avior of employees in LIC company ill instill confidence in customers$ ! 9 5 B F

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty

Insured customers of LIC company ill feel safe it& insurance services$

! 9

Employees in LIC company ill be consistently courteous to customers$

! 9

Employees in LIC company ill &ave t&e /no led#e to ans er t&e customers3 questions$

! 9

veraBe ssurance Empat#y LIC company ill #ive individual attentions on customers$ ! 9 5 B F

LIC company ill &ave or/in# &our convenient for all its customers$

! 9

LIC company ill &ave employees &o #ive customers personal attention$

! 9

LIC company ill &ave t&eir customers3 best interest at &eart$


GURU NANAK COLLEGE

! 9

Page 63

Impact of service quality on customer loyalty

,&e employees of LIC company ill understand t&e specific needs of t&eir customers$

! 9

veraBe Empat#y

CU.,O?ER LOCAL,C NUE.,IONER.

=+ @o lon# &ave you been t&e customer of t&is companyQ ! to 5 yrs F to < yrs 5 to F yrs < to !" yrs

!"+ I &ave received a proper demonstration on t&e product t&at you bou#&t by t&e concerned professional$ .tron#ly a#ree 9 A#ree F Avera#e B ;isa#ree 5 .tron#ly dis a#ree !

!!+ ,&e time is ta/en by LIC for documentation process is reasonable$

.tron#ly a#ree 9

A#ree F

Avera#e B

;isa#ree 5

.tron#ly dis a#ree !

GURU NANAK COLLEGE

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Impact of service quality on customer loyalty


!5+ I li/e to purc&ase different policy from t&is company a#ain$

.tron#ly a#ree 9

A#ree F

Avera#e B

;isa#ree 5

.tron#ly dis a#ree !

!B+ I ould li/e to recommend products of t&is company to my friends and relatives$

.tron#ly a#ree 9

A#ree F

Avera#e B

;isa#ree 5

.tron#ly dis a#ree !

!F+ .u##estion TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT TT

C>+ @ 1 7i(lioBrap#y% .ttpACCwww&wise<eek&comCw.atDisDcustomerDloyalty&.tm7customer loyalty .ttpACCwww&allbusiness&comCsalesCcustomerDser-iceC2362D2&.tml7customerloyalty .ttpACCwww&customerloyalty&or<C .ttpACCwww&allbusiness&comCcompanyDacti-itiesDmana<ementCoperationsD customerC2020905ED2&.tml.ttpACCwww&22mana<e&comCmet.odsF$eit.amlFser-;ual&.tml


GURU NANAK COLLEGE Page 65

Impact of service quality on customer loyalty


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GURU NANAK COLLEGE

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