RESEARCH PROJECT REPORT

ON

“A STUDY OF FACTORS DETERMINING SERVICE QUALITY OF

INSURANCE PRODUCT: WITH SPECIAL REFERENCE TO LIC”

TABLE OF CONTENTS

Content Page No.

 Introduction of the topic 6-10

 Company Profile 11-15

 Objectives of the Dissertation 16-17

 Literature Review 18-21

 Research Methodology 22-23

 Data Analysis/ Interpretation 24-37

 Findings of the Study 38-40

 Limitations 41-42

 Suggestions 43-44

 Conclusions 45-46

 References/ Bibliography 47-48

 Annexure- Questionnaire 49-52

1
INTRODUCTION

2
 INTRODUCTION OF THE TOPIC

"The way of Life Insurance is identified with the wellbeing and security of the financial

estimations of the benefits". Everybody has the mindset to secure him from instabilities of

future. Protection is one type of investment funds where in individuals attempt to secure

themselves against dangers of future. It is affirmation against dangers or occasions or

instabilities. Individuals can spare their salary as gold, settled resources like property and in

protections. Subsequently protection part is still undiscovered in India.

Idea of Insurance:

Numerous individuals in this nation are not in job; and work for too numerous no more ensures

wage security, there is no security spread against danger. Hazard has gotten to be vital to one's

life. It is past this stage protection strategy has been framed by the insurance agencies covering

dangers at different levels. Disaster protection scope is against the instabilities of future, for

example, disablement or in occasion of death of the guaranteed, financial help for the general

population who are subject to them. Man discovers his security in profit (cash) that empowers

him to purchase sustenance, dress, cover and different necessities of life. He needs to give

legitimately to his family needs, thus he needs to keep aside something frequently for his future.

3
 CONCEPT OF INSURANCE

Numerous individuals in this nation are not in job; and work for too numerous no more ensures

wage security, there is no security spread against danger. Hazard has gotten to be vital to one's

life. It is past this stage protection strategy has been framed by the insurance agencies covering

dangers at different levels. Disaster protection scope is against the instabilities of future, for

example, disablement or in occasion of death of the guaranteed, financial help for the general

population who are subject to them. Man discovers his security in profit (cash) that empowers

him to purchase sustenance, dress, cover and different necessities of life. He needs to give

legitimately to his family needs, thus he needs to keep aside something frequently for his future.

4
Sorts of Insurance:

Protection is of two sorts, in light of the way of protection, those are:

1. Life Insurance

2. Non-Life Insurance or General Insurance.

Non Life Insurance can be again subdivided into the accompanying classes:

1. Fire Insurance.

2. Marine Insurance.

3. Social Insurance

4. Miscellaneous Insurance. (Medical coverage, Liability Insurance and so on….)

5
 HISTORY OF LIFE INSURANCE CORPORATION OF INDIA

It was framed in 1 September 1956. The organization was made with the target of disaster

protection all the more broadly, particularly to contact the insurable individuals in the rustic

zones and offering them with suitable budgetary scope at ostensible cost. The way of extra

security contracts being long haul combined with the need to give an assortment of

administrations amid the term of approach, LIC re-sorted out itself by opening various new

branch workplaces. After its re-association overhauling capacities were exchanged to branches

which were changed over to bookkeeping units.

Operations:

Today, the LIC has eight zonal workplaces, one hundred thirteen divisional workplaces, two

thousand forty eight branches, one thousand three hundred eighty one satellite offices and

corporate offices; it likely has fifty four customer zones and twenty five metro area service hubs

located in different cities and towns of India. As on 31 st March 2016 LIC had one lakh fourteen

thousand seven hundred seventy three employees.

6
COMPANY PROFILE

7
 COMPANY PROFILE

It is the only PSU LIC in India. The organization was formed in September 1, 1956 and its

Headquarter situated in Mumbai it is undertaken by government of India. Mr. V K Sharma is the

chairman of LIC of India. LIC of India is the largest insurance sector in the country. It has firm

grip in throughout the country. Its official website is www.licindia.in. With the help of this

website anyone can get any type of enquiry rated with policy details. Anyone can different type

of LIC’s information to customer services and requirements.

The goal of the corporation is to sell its product throughout the country particularly in rural areas

and those people who are financially weak. The life insurance covers risk of the life at low

premium. These four managing directors are Usha Sangwan, Hemant Bhargava, B. Venugopal

Sunita Sharma and Its estimated asset value of Rs. 15,60,482 crore (US$240 billion). As on 31 st

March 2016, LIC had 1,14,773 employees.

8
SLOGAN:
LIC’s slogan yogakshemam vahamyaham is in ancient Language which translates in English as

“Your happiness is our motive”. This is derived from an ancient text, the ninth chapter of

BHAGVAD GITA. The Symbol of LIC shows the impact of slogan, written in Devanagri Script.

LIC Premium Calculator:

LIC premium calculator is very important to its customers, LIC premium calculator on online is

very easy to calculate the premium. The customer can also choose premium calculator online.

When anyone buy the LIC Policy, can calculate the premium by filling the following details as

mentioned below:

Name of the policy holder

Kinds of policy

Sum assured

Table- term

For more information click here:

LIC Premium Calculator

9
LIC Customer Care Numbers

For any query related with organization anyone can call the member of the customer care of the

organization . Toll free numbers of the organization is as under:

Customer Care Numbers:

1251 (MTNL or BSNL numbers)

Website: www.licindia.in

Modes of Payment:

The Customer of the LIC can pay the premium online mode and offline mode. Online

payment is easy & helpful. Steps to be used while premium payment through online.

Step 1: Fill the DOB and Policy Number.

Step2: Choose the option of payment either by Net Banking mode or Credit card mode.

Step3: Hold the payment receipt and keep it for future reference.

10
 VISION AND MISSION OF LIFE INSURANCE CORPORATION OF INDIA

Vision

To enhance financial security and risk of life to its customer and to be the brand of India.

Mission

To enhance category of person and their life with financial security by offering LIC products and

best services and fruitful results to them.

11
 OBJECTIVES

OF

Research project report

12
 OBJECTIVES OF RESEARCH PROJECT REPORT

 To find out the factors affecting service quality of LIC.

 To determine the customer satisfaction and attitude towards LIC products.
 To evaluate the customer satisfaction level with service quality of LIC.

13
LITERATURE REVIEW

14
 LITERATURE REVIEW

The Life Insurance Corporation of India was the sole player in the disaster protection segment in

India before year 2000. As soon private players entered in this field, LIC lost its piece of the

overall industry. In India the results of LIC are best in as ventures for assessment reserve funds,

and in addition in danger assurance.

Rajan Saxena (1986) in his article entitled "Disaster protection Services "settles different issues

identifying with Life Insurance. The creator demands the significance of extra security and talks

about on different methods of life coverage.

Punithavathy Pandian and Malliga, R. (2003) in their article sway on liberalization on the

showcasing execution by Life Insurance Company focused on that the promoting execution of

the life coverage Company has expanded in the course of the most recent couple of years. The

15
items are sold in wealth and still protection entrance towards the mass must be expanded

colossally over the inevitable years.

Shaoo S.D. (2002) LIC is paying 35% as first year commission to its operators. It can be spread

over resulting years. On the off chance that a Policyholder comes up short or in this manner

defaults in premium installment, the commission paid to the specialists ought to be recuperated.

To execute this, IRDA needs to make correction in the IRDA Act 2000.

Namasivayam, Ganesan, S. also, Rajendran,S. (2006) inspected the elements identified with

society and fiscal that are in charge of procurement of life coverage strategies and the inclination

of the clients towards different sorts of approaches of Company. From the examination, it was

observed that variables, for example, age, training level and sex of the clients are vital, however

pay level, occupation and family size are imperative components for the buy of LIC items.

16
Khan, M.K. (1978) attempts to know the opportunities and prospects in the life insurance sector.

He explains about what a good carrier is and how a good career should be for selling of life

insurance products. There is no age barrier and it requires no previous occupational experience

but one must be a professional and capable of creating opportunities in building personality. The

relationship of life insurance agent with clients is not temporary and the service rendered has no

substitutes. He also observes that life insurance agent remains, in a sense, permanent server to

the clients.

17
RESEARCH METHODOLOGY

18
 RESEARCH METHODOLOGY

Sample and data collection:-

This survey is conducted in the context of insurance services provided by Life Insurance

Corporation of India. The data is collected in face to face interviews of customers coming to

LIC and others.

Research Design:-

The research design is related to the collection and analysis of data. There is Qualitative and

Quantitative Research Design.

Data collection: -

In qualitative research design, for the collection of data Depth Interviews, Focus groups and

Projective techniques have been used. In quantitative research design, the data have been

collected from primary source through observations, experimentation and questionnaires.

Sample size: -

The samples have been selected on random basis. A sample of 100 respondents has been used in

the research.

Data sources: -

19
Both secondary and primary sources of data have been used. The major type of information used

is primary data. This is done through primary survey. The literature review contains a secondary

data type. The sources include magazines, websites etc.

DATA ANALYSIS

AND

INTERPRETATION

20
 DATA ANALYSIS & INTERPRETATION

Q1. Are you a customer of LIC of India?

Options Percentage No. of Respondents

Yes 100% 100

No 0% 0

Table no.1

Interpretation:

The above chart shows that out of 100 respondents, 100% said yes; they are the customer of LIC

of India.

Q2. Are you satisfied with the services of LIC of India?

21
 Options Percentage No. of Respondents

Yes 100% 100

No 0% 0

Table no.2

Interpretation:

The above chart shows that out of 100 respondents, 100% said yes; they are satisfied with the

services of LIC of India.

Q3. Give reasons for insuring with LIC.

Options Percentage No. of Respondents

22
 Brand 20% 20

Grievances Handling 10% 10

Undue delay in claims 20% 20

All of the above 50% 50

Table No.3

Interpretation:

The above chart shows that out of 100 respondents, 20% respondents are insured due to its

brand, 10% respondents are insured due to grievance handling, 20% respondents are insured due

to undue delay in claims, 50% are insured from all of the above.

Q4. What scheme of insurance policy have you taken?

Options Percentage No. of Respondents

Whole Life 0% 0

Endowment Plus 60% 60

23
 Money Back 40% 40

Pension Fund 0% 0

Table No.4

Interpretation:

24
The above chart shows that out of 100 respondents, 60% respondents having the age group of

18-25 have taken the Endowment Plus policy, and 40% respondents having the age group of 25-

35 have taken the Money Back policy.

Q5. What is the duration of the latest Policy?

Options Percentage No. of Respondents

5 years 0% 0

5-15 years 40% 40

15-25 years 38% 38

Above 25 years 22% 22

Table No.5

Interpretation:

The above chart shows that out of 100 respondents, 40% respondents liked 5-15 term years

policy; 38% respondents liked 15-25 term years policy; 22% respondents liked Above 25 term

years policy.

25
Q6. Whether you are aware of all details of policy you have from LIC.

Options Percentage No. of Respondents

Yes 80% 80

No 20% 20

Table no.6

Interpretation:

The above chart shows that out of 100 respondents, 80% respondents said yes; they are aware of

all details of policy of LIC; while 20% respondents said no.

Q7. Rate your Satisfaction level towards services offered by LIC.

26
 Options Percentage No. of Respondents

Dissatisfied 5% 5

Neither Satisfied Nor 10% 10

Dissatisfied

Satisfied 35% 35

Very Satisfied 50% 50

Table No.7

Interpretation:

The above chart shows that out of 100 respondents, 5% respondents said that they are

Dissatisfied, 10% respondents said that they are Neither Satisfied Nor Dissatisfied, 35%

respondents said that they are Satisfied, and 50% said that they are Very Satisfied.

Q8. Do LIC have complex formalities?

27
 Options Percentage No. of Respondents

Yes 10% 10

No 90% 90

Table no.8

Interpretation:

The above chart shows that out of 100 respondents, 10% respondents said that LIC have complex

formalities; while 90% respondents said that LIC does not have complex formalities.

Q9. Rate your overall satisfaction with Insurance Policies of LIC of India.

Options Percentage No. of Respondents

28
Highly Satisfactory 70% 70

Satisfactory 20% 20

Dissatisfactory 10% 10

Highly Dissatisfactory 0% 0

Table No.9

29
Interpretation:

The above chart shows that out of 100 respondents, 70% respondents are highly satisfactory;

20% respondents are satisfactory; 10% respondents are dissatisfactory with insurance policies of

LIC of India.

Q10. Undue delay in Claim Settlement Process.

Options Percentage No. of Respondents

Yes 10% 10

No 90% 90

Table no.10

Interpretation:

30
The above chart shows that out of 100 respondents, 10% respondents said that there is a claim

settlement process; while 90% respondents said that there is not a claim settlement process.

Q11. Do agents of LIC provides the correct information.

Options Percentage No. of Respondents

Yes 52% 52

No 48% 48

Table no.11

Interpretation:

31
The above chart shows that out of 100 respondents, 52% respondents said that LIC agents

provide the correct information; while 48% respondents said that LIC agents do not provide the

correct information.

Q12. Rationale behind the investment in LIC.

Options Percentage No. of Respondents

Individual Risk Coverage 30% 30

Tax Benefits 10% 10

Growth and Return on 20% 20

Investments

Risk Coverage of Family 40% 40

32
 Table No.12

Interpretation:

The above chart shows that out of 100 respondents, 30% respondents said that they in LIC for

individual risk coverage; 10% respondents said that they invest for tax benefits; 20%

respondents said that they invest for growth and return on investments; 40% respondents said

that they invest for risk coverage of family.

Q13. If you buy a new policy would you like to go for LIC?

Options Percentage No. of Respondents

33
 Unlikely 0% 0

Neither Likely Nor Unlikely 10% 10

Likely 20% 20

Very Likely 70% 70

Table No. 13

Interpretation:

The above chart shows that out of 100 respondents, 10% respondents said that they are Neither

Likely Nor Unlikely, 20% respondents said that they are Likely, 70% respondents said that they

are Very likely to go to LIC for buying a new policy.

34
 FINDINGS

AND

RECOMMENDATIONS

35
 FINDINGS & RECOMMENDATIONS

 100 respondents out of 100 respondents said yes, they are the customers of LIC of

India while nil respondents said no.

 100 respondents out of 100 respondents said yes, they are satisfied from services of LIC

of India while nil respondents said no.

 20 respondents out of 100 respondents said that they are insured due to LIC brand, 10

respondents are insured due to grievance handling, 20 respondents are insured due to

undue delay in claims, and 50 respondents are insured from all of the above.
 60 respondents out of 100 respondents having the age group of 18-25 have taken the

endowment plus policy, 40 respondents having the age group of 25-35 have taken the

money back policy.

 40 respondents out of 100 respondents liked the 5-15 term years policy, 38 respondents

liked the 15-25 term years policy and 22 respondents liked the above 25 years policy.
 80 respondents out of 100 respondents said that they are aware with details of policy of

LIC, while 20 respondents said no.

 5 respondents out of 100 respondents are dissatisfied, 10 respondents are neither satisfied

nor dissatisfied, 35 respondents are satisfied and 50 respondents are very satisfied with

the services offered by LIC.

 10 respondents out of 100 respondents said that LIC have complex formalities, while 90

respondents said no.

 70 respondents out of 100 respondents are highly satisfied, 20 respondents are satisfied,

and 10 respondents are dissatisfied with insurance policies of LIC of India.

 10 respondents out of 100 respondents said that there is a claim settlement process while

90 respondents said no.

 52 respondents out of 100 respondents said that LIC agents provide the correct

information, while 48 respondents said no.

 30 respondents out of 100 respondents said that they invest for individual risk coverage,

10 respondents said that they invest for tax benefits, 20 respondents said that they invest

36
 for growth and return on investment, 40 respondents said that they invest for risk

coverage of family.
 10 respondents out of 100 respondents said that they are not in the position to decide they

are not in the position to purchase policy with LIC or not, 20 respondents said that they

are satisfied and 70 respondents they are very much satisfied to purchase policy with

LIC.

LIMITATIONS

37
 LIMITATIONS

The time stipulated for the survey report is completed is less so there are many chances that

some information might have been left out. However utmost care is taken to include all the

relevant information and data needed. Due to lack of time sample size is relatively small and

would definitely have been more representative if I had collected data and information from

more respondent.

38
SUGGESTIONS

39
 SUGGESTIONS
 To maximize the level of insurance penetration Life Insurance Corporation will focus on

bringing products that suit to rural customers.

 LIC should motivate its agents so that they may deliver proper information to their

policyholders.
 Claim settlement process should be without delay and must not involve lengthy decision

making process.
 Some special focus should be focus on everyone’s risk coverage while forming the

products.

CONCLUSION
40
 CONCLUSION

From the data collected it is apparently clear that every customer is satisfied from the services

offered by LIC. Many private players are in the insurance sector in the market instead of LIC is

number one brand and best grievance handling. The entry of private sector insurance

companies into the Indian insurance sector triggered off a series has changed in the industry.

Even with the stiff competition in the market place, it is evident from the study that products

presented by the Life Insurance Corporation are credible, and are liked by the customers.

However the customers are satisfied by the adequate and pure knowledge provided by the

organization or their representatives called agents and they are too much easy for payment in

their various schemes without any hidden cost. Payments are made very quickly. In future if

41
they have to buy a new policy they would prefer the Life Insurance Corporation of India. They

have a positive and good perception for LIC.

42
 BIBLIOGRAPHY

BIBLIOGRAPHY

Books:

 Yogakshemam Magazine
 Pragati Magazine

43
Websites:

www.licindia.ac.in

44
 ANNEXURE

QUESTIONNAIRE (ANNEXURE)

RESPONDENT PROFILE

 Name of the respondent:…………………………………….

 Residential/ office address...........................................................
……………………………………………………………………
 Contact No. :……………………………………………………..
 Age group of the respondent: 18-25( ) 25-35( ) 35-45( ) 45 or More( )
 Education/ qualification: ………………………………………………
 Occupation:…………………………………………………………….
 Designation…………………………………………………………….

45
 Q1. Are you a customer of LIC of India?

a) Yes b) No

Q2. Are you satisfied with the services of LIC of India?

a) Yes b) No

Q3. Give reasons for insuring with LIC.

a) Brand b) Grievances Handling

c) Undue Delay in Claims d) All of the above

Q4. What scheme of insurance policy have you taken?

a) Whole Life b) Endowment Plus

c) Money Back d) Pension Fund

Q5. What is the duration of the latest Policy?.

a) 5 years b) 5 – 15 Years

c) 15 – 25 Years d) Above 25 Years

Q6. Whether you are aware of all details of policy you have from LIC.

a) Yes b) No

Q7. Rate your Satisfaction level towards services offered by LIC.

46
 Dissatisfied (1) Neither Satisfied (3) Very
satisfied nor satisfied (4)
dissatisfied (2)

Q8. Do LIC have complex Formalities?

a) Yes b) No

Q9. Rate your overall satisfaction with Insurance Policies of LIC of India?

a) Highly Satisfactory b) Satisfactory

c) Dissatisfactory d) Highly Dissatisfactory

Q10. Undue Delay in Claim Settlement Process.

a) Yes b) No

Q11. Do agents of LIC provides the correct information.

a) Yes b) No

Q12.Rationale behind the investment in LIC.

a) Individual Risk Coverage b) Tax Benefits

c) Growth and Return on investments d) Risk Coverage of Family

47
Q13. If you buy a new policy would you like to go for LIC.

Unlikely Neither likely Likely (3) Very likely

(1) nor unlikely (2) (4)

48