International Journal of World Research, Vol: I Issue XXIX, May 2016, Print ISSN: 2347-937X
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POLICYHOLDERS’ SATISFACTION TOWARDS SERVICES OFFERED BY LIFE
INSURANCE CORPORATION OF INDIA - A STUDY WITH REFERENCE TO
NAGAPATINAM DISTRICT
K. Sankaranarayanan
Ph.D Research Scholar, PG & Research Department of Commerce,
A.V.C. College (Autonomous), Mannampandal - 609 305, Mayiladuthurai,
Dr. R. Rajanbabu
Assistant Professor and Research Advisor, PG & Research Department of Commerce,
A.V.C. College (Autonomous), Mannampandal - 609 305, Mayiladuthurai
ABSTRACT
The majority of the policy holders are satisfied with LIC`s service. The major objectives of this research
are to ascertain the socio-economic profile of sample respondents and identify the satisfaction level of
policyholders in LIC`s services. This research has also endeavors to develop the customer satisfaction. Primary
data has been collected for this present study. The primary data was collected from 560 sample respondents
from Nagapattinam District, by proportionate stratified random sampling method. Suggested this study, the
analysis it is identified that educational qualification and monthly income are found to be associated with policy
holder’s satisfaction. LIC should spread its wings in rural areas; it will enable the policy holders rather they
approach in urban area. LIC has to create awareness among female policy holders, regarding the benefits of
the LIC policies. This article highlights policyholders’ satisfaction towards services offered by life insurance
Corporation of India - a study with reference to Nagapattinam district.
KEY WORDS :Policyholders‟ satisfaction, Policyholders‟ Awareness and Satisfaction, Services offered, Life
Insurance Corporation of India, Malhotra Committee, Problems faced by the Policyholders, LIC housing Loan
Finance
INTRODUCTION
Insurance is defined as a co-operative device to spread the loss caused by particular risk over a number
of persons who are exposed to it and who agree to ensure themselves against that risk. Every risk involves the
loss of one or other kind. The function of insurance is to spread the loss over a large number of persons who
have agreed to co-operate each other at the time of loss. The risk cannot be averted but loss occurring due to
International Journal of World Research, Vol: I Issue XXIX, May 2016, Print ISSN: 2347-937X
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certain risk can be distributed amongst the agreed persons. The insurance, as a social device to accumulate
funds and to meet the uncertain losses arising through a certain risk to a person insured the risk.
STATEMENT OF THE PROBLEM
Insurance sector, as a whole has contributed to the development of economy through generation of
employment opportunities, acceleration of industrial growth and so on. Although Life insurance Corporation of
India has its own significance and place in the economy, it is not free from problems. Policyholders‟ satisfaction
is the true differentiator for the success of any business and is more so in insurance, where the products are
perceived to be intangible. The six main aspects namely assess the policyholders, satisfaction level of
policyholders, service quality, LIC housing finance, switching behaviour and problem faced by policyholders.
In today‟s challenging business environment, customer service and policyholders‟ satisfaction are
emerging as key competitive advantages. Life Insurance is customer based business where retention of existing
policyholders is the biggest challenge in present-day cut throat market competition. LIC enjoyed monopoly in
life Insurance sector during the pre-nationalized period up to 1999. So public are forced to accept the policies
issued by LIC. After liberalization in 2000, many Indian and foreign companies are entered in insurance
business. Due to the advent of stiff competition, both public sector and private sector introduce new polices
with low cost. So LIC has a variety of plans to cater the needs of various categories of people and their diverse
needs. LIC makes effective awareness among public about its product and give better service to its
policyholders. Hence, the present study focuses on policyholders‟ satisfaction towards services offered by Life
Insurance Corporation of India- a study with reference to Nagapattinam district.
Life is full of risk and uncertainties. They believe in future rather than the present and desire to have a
better and secured future. In this direction, life insurance service has its own value in terms of minimizing risk
and uncertainties. Indian economy is developing and having huge middle class societal status and salaried
persons. Their money value for current needs and future desires has the pendulum moves to another side which
generate the reasons behind holding a policy. Insurance industry is a service-oriented unit. It renders services
like available space, display adequate information, suggestion box and so on to the policyholders. It is essential
that insurance schemes should attract and satisfy the policyholders in different ways. Life insurance has today
become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money
for long periods of time. Ever since its inception in 1956, the life insurance companies in India have been
providing better service to the society. The policyholders once when they become a part of the LIC feel free
about the safety of their wards. The families of the non-policyholders meet out uncertainty on the death of the
bread winner. So, there is an attraction towards life insurance. People who care much about them and their
families become policyholders of life insurance. The tastes and preferences of policyholders are indifferent.
The LIC of India has been introducing variety of policies suiting the tastes and preferences of the
policyholders. It is observed that many policyholders have taken more than one policy. It is a clear indication
that they are very much interested in utilizing maximum benefits from LIC. Some people give due importance
to money value and high returns on their investments. But greater risks are inherent advantages expected from
LIC products. It is in this context this study has been undertaken to the “policyholders‟ satisfaction towards
services offered by Life Insurance Corporation of India - a study with reference to Nagapattinam district”.
OBJECTIVES OF THE STUDY
The main objectives of the study are as under:
1. To analyse the policyholders‟ awareness and satisfaction towards insurance policies in Life Insurance
Corporation of India.
2. To ascertain the policyholders‟ level of satisfaction relating to services offered by Life Insurance
Corporation of India in Nagapattinam district.
3. To find out the problems faced by the policyholders towards Life Insurance Corporation of India in
Nagapattinam district.
International Journal of World Research, Vol: I Issue XXIX, May 2016, Print ISSN: 2347-937X
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HYPOTHESIS OF THE STUDY
H0: 1 H0: 2 “There is no significant association between type LIC plans and awareness of the
policyholders”.
H0: 2 “There is no significant association between reasons for the preference of LIC policy and the
policyholders”.
H0: 3 “There is no significant difference between demographic profile and policyholders‟ level of
satisfaction”
H0: 5 “There is no significant difference between demographic profile and problems faced by
policyholders”.
METHODOLOGY
The study was based on survey method. This study both primary and secondary data. The primary data
was collected from one five hundred and sixty sample respondents by using interview method from
Nagapattinam District. Samples were chosen by adopting convenient sampling method. The interview schedule
has been prepared in such a way that the respondents are able to express their opinion freely and frankly. A well
structured interview schedule was framed with the help of the Research Supervisor, the research experts and the
LIC managers in the study area. Interview schedule was the main tool used to collect the pertinent data from the
selected sample respondents.
Primary Data
Primary data refer to data that are collected a fresh for the first time and that is original in nature. The
required primary data are collected through interview schedule for policyholders.
Secondary Data
Secondary data are that data that have been collected by someone else and which have already been
passed through the statistical process. Secondary data here have been collected from company records, product
profile of the company, article, journal, newspapers, magazines, books and general discussion with company
channels.
Sampling Design
The researcher had adopted Proportionate Stratified Random Sampling Method was used to select the
sample policyholders in Life Insurance Corporation of India, Nagapattinam district. To conduct this study with
regard to the utilization of the Life Insurance Corporation services by the policyholders particularly the
policyholders in early 2015. This sampling involved in drawing sample from each stratum in proportion to the
latter‟s share in the total policyholders. 0.5 per cent of each taluk namely Kevalur, Kuthalam, Mayiladuthurai,
Nagapattinam, Sirkali, Tharangambadi, Thirukuvalai and Vetharanyam were selected for the study. The sample
size constituted 0.5 per cent of the universe (total 1, 12,000) i.e., 560 sample policyholders were selected. For
selecting the respondents the following process was adopted: Out of the total respondents scattered in 8 Taluks
of the Nagapattinam District and among nearly 1.12 lakhs policyholders continuously paying the premium at
present. Thus, the total sample selected is 560 in the whole district of Nagapattinam.
Statistical Tools and Analysis
The collected data have been consolidated, tabulated and analyzed by using relevant statistical tools like,
Percentage analysis, Descriptive analysis, One Way ANOVA, t-Test, Regression analysis, Kruskal-Wallis Test,
Multivariate Test, Reliability test for Cronbach‟s alpha and Factor Analysis. The SPSS 20.0 package was
utilized for analyzing the data.
SCOPE OF THE STUDY
The study covers only policyholders‟ satisfaction towards services offered by Life Insurance
Corporation of India- in Nagapattinam district, such as factors influencing policyholder, assess the satisfaction
of the policyholders (product attributes, product services, product information, risk coverage and knowledge
levels of agents), switching over from LIC to other private companies, services offered by LIC of India,
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respondent‟s satisfaction level regarding various factors of LIC housing finance and problems faced by the
policyholders. The study pertains to a period from April 2014 to March 2015. Further, the literature available on
life insurance industry is also very limited and hence, the scope of the present study is made narrower.
AREA OF THE STUDY
This study is restricted to the Nagapattinam District which comes under the Thanjavur Division of
Tamilnadu, which is considered as one of the top divisions of Southern Zone of LIC of India. The respondents
are selected only from Nagapattinam District and only those policyholders who have Life insurance policies of
Life Insurance Corporation of India alone were interviewed.
PILOT STUDY
The interview schedule was given to some research experts for a critical view regard to its content,
format and sequence and their feedback was incorporated. Then interview schedule was distributed to 20
respondents for pre-testing and pilot study was also conducted. Pre-testing was done to ensure reliability and
validity of the interview schedule. It was done to check whether the instrument was correctly framed in an
understandable manner. Taking into consideration the suggestions of the selected sample respondents, necessary
modifications and changes were incorporated in the interview schedule after the pilot study. The respondents
included in the pilot study were not included as samples for the final study.
PERIOD OF THE STUDY
The studies cover recent one year from April 2014 to March 2015 for analysis of secondary data relating
to various aspects of marketing in Life Insurance Corporation of India. The primary data relating to the opinion
of policyholders of LIC of India have been collected during the last year of the study April 2015 to March 2016.
LIMITATIONS OF THE STUDY
As the study made with Primary and Secondary research, there are certain limitations to the study to be
noticed.
1. Sufficient number of respondents from all the LIC service could not be included.
2. The study is confined only to policyholders‟ satisfaction of LIC and other related issues are beyond
the purview of present study.
3. The study does not deal with other diversified activities of LIC like mutual funds and other services
and also the General Insurance Corporation of India (GICI).
4. The study aims to analyze only individual life insurance policies and not the group insurance policies,
health insurance policies, postal life insurances and Employees State Insurance, taken by the women
policyholders.
5. Convenient sampling method was used to frame the sample for indefinite population and its
limitations are also applicable.
6. It is difficult to know if all the respondents gave accurate information; some respondents tend to give
misleading information.
POLICYHOLDERS’ SATISFACTION TOWARDS LIC OF INDIA –AN ANALYSIS
Individual policyholders selected from the Life Insurance Corporation of India constituted the sample of
customers. The demographic profile of prospective customers is strategically very relevant and significant is
designing and marketing of insurance products. More importantly, a clear understanding of demographic
characteristics of customer is very essential for diagnosing the difference in the attitude and perception of the
policyholders. The studies also focus on customer satisfaction services offered by the Life insurance
Corporation.
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Table 1: Demographic Profile of the Respondents
Demographic profile Number of Respondents Percentage
Gender
Male 427 76.25
Female 133 23.75
Total 560 100.00
Age
Below 20 39 6.96
21 to 30 86 15.36
31 to 40 182 32.50
41 to 50 116 20.71
51 – 60 73 13.04
60 and above 64 11.43
Total 560 100.00
Marital Status
Unmarried 98 17.50
Married 434 77.50
Others (Divorce/Widow /
Single) 28 5.00
Total 560 100.00
Geographic Locality
Rural 341 60.89
Urban 219 39.11
Total 560 100.00
Education
Illiterate 32 5.71
Upto school level 169 30.18
Graduate/ Diploma 217 38.75
Post graduate/ Professional 142 25.36
Total 560 100.00
Occupation
Government employee 143 25.54
Private employee 161 28.75
Businessmen 94 16.79
Students 47 8.39
House wife 28 5.00
Farmers 87 15.54
Total 560 100.00
Monthly Income
UP to 25,000 363 64.82
25,001 to 50,000 134 23.93
50,001 to 1,00,000 52 9.29
Above 1,00,000 363 1.96
Total 560 100.00
Size of the Family
Members
Small (≤3) 131 23.21
Medium (3-5) 332 59.46
Large (above 5 ) 97 17.32
Total 560 100.00
Nature of Family
Joint 197 35.18
Nuclear 363 64.82
Total 560 100.00
Source: Primary data
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Table 1 shows that demographic profile of the policyholders. Gender is the important distinguishing
segmentation variable. As far as insurance is concerned, men had greater idea about the insurance products and
female also significant role in the taking critical decisions in the purchase of products. Therefore, it is pertinent
to study the association between gender of the respondents and their satisfaction towards services of the LIC of
India. Analysis of gender segmentation shows that male consists 76.25 per cent of the policyholders and only
23.75 per cent belonging to female category.
Age is the important demographic variable for distinguishing segment. The policyholders from different
age groups are requested to state their level of satisfaction towards services of the LIC of India and an attempt
was made to find out the association between age and satisfaction. Age wise segmentation of policyholders
shows that about 32.50 per cent belong to the age group of 31 to 40 which is a common trend in the insurance
sector. The age category of 41 to 50 years, 21 to 30 years, 51 to 60 years, 60 and above constitutes 20.71 per
cent, 15.36 per cent, 13.04 per cent and 11.43 per cent towards the respondents in the life insurance
policyholders. However, policyholders belonging to age category of below 20 constitute only 6.96 percent of
the total in the insurance sector.
The married category of respondents constitutes 77.50 per cent, unmarried category of respondents
constitutes 17.50 per and 5 per cent are other (Divorce/Widow / Single) category of respondents. The
geographic location of the respondents constitutes highest of 60.89 per cent of the respondents belong to rural,
39.11 per cent of the respondents belong to urban.
The education of the policyholders influences their satisfaction towards services of the LIC of India.
Therefore, the respondents from different educational status are requested to state their level of satisfaction
towards services of the LIC of India and an attempt was made to find out the association between educational
status and satisfaction. Education wise segments show that individuals having graduate/diploma qualification
constitutes 38.75 of the policyholders followed by up to school qualification constitutes 30.18 percent and Post
graduate/Professional qualification constitutes 25.36 per cent. Hardly 5.71 percent of the policyholders belong
to illiterate respondents in the life insurance policyholders.
The occupation segments, represents that 28.75 per cent of policyholders are employed in the private
sector, 25.54 per cent of the policyholders are employed in the government sector, 16.79 per cent of the
policyholders are businessmen, 15.54 per cent of the policyholders are farmers, 8.39 per cent of the
policyholders are students, and house wife category policyholders constitutes 5 per cent.
The income wise analysis of customer segmentation indicates that 64.82 per cent of the policyholders
have monthly income of up to Rs.25,000, 23.93 per cent of the policyholders have monthly income of
Rs.25,001 to 50,000, 9.29 per cent of the policyholders have monthly income of Rs. Rs.50,001 to 1,00,000 and
1.96 per cent of the policyholders have monthly income of 1.96 towards the respondents.
Out of total 59.46 per cent of the respondents are medium family size of 3 to 5 members, 23.21 per cent
of the respondents are small family size of less than are equal to 3 members and 17.32 per cent of the
respondents are large family size of above 5 members.
The nature of family size represents that 64.82 per cent are nuclear family and 35.18 per cent of the
respondents are joint family towards the policyholders.
MULTIVARIATE TEST
Multivariate testing is a technique for testing a hypothesis in which multiple variables are modified. The
goal of multivariate testing is to determine which combination of variations performs the best out of all of the
possible combinations.
Websites and mobile apps are made of combinations of changeable elements. A multivariate test will
change multiple elements, like changing a picture and headline at the same time. Three variations of the image
and two variations of the headline are combined to create six versions of the content, which are tested
concurrently to find the winning variation.
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H0: 1 “There is no significant relationship between the motivational factors to taking the life insurance policy
and geographic location”
Table 2: Multivariate Test
Effect Value F Hypothesis df Error df Sig.
Intercept
Pillai's Trace 0.940 955.723b 9 550 0.000*
Wilks' Lambda 0.060 955.723b 9 550 0.000*
Hotelling's Trace 15.639 955.723b 9 550 0.000*
Roy's Largest Root 15.639 955.723b 9 550 0.000*
Geographic
Locality
Pillai's Trace 0.041 2.630b 9 550 0.006*
Wilks' Lambda 0.959 2.630b 9 550 0.006*
Hotelling's Trace 0.043 2.630b 9 550 0.006*
Roy's Largest Root 0.043 2.630b 9 550 0.006*
Source: Computed from Primary data, * Significant at five per cent level
Table 3: Area wise Estimated Marginal Mean
Dependent Variable Geographic
Location Mean Std. Error
95% Confidence Interval
Lower Bound Upper Bound
Agent Motivation Rural 4.003 0.072 3.862 4.144
Urban 4.164 0.090 3.988 4.341
Friends/Relatives Rural 3.806 0.072 3.665 3.948
Urban 3.776 0.090 3.599 3.953
Advertising Rural 3.762 0.072 3.621 3.904
Urban 3.817 0.090 3.641 3.994
Family member Rural 3.912 0.063 3.788 4.036
Urban 3.936 0.079 3.781 4.091
Familiarity Rural 3.522 0.077 3.370 3.674
Urban 3.594 0.097 3.404 3.783
Habit of savings Rural 3.742 0.074 3.596 3.888
Urban 3.667 0.093 3.485 3.848
Company Scheme Rural 3.457 0.078 3.304 3.611
Urban 3.639 0.098 3.448 3.831
Image of Company Rural 3.663 0.076 3.513 3.813
Urban 3.553 0.095 3.366 3.739
Type of policy Rural 3.416 0.080 3.259 3.573
Urban 3.589 0.100 3.393 3.785
Source: Computed from Primary data
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Table 4: Tests of Between-Subjects Effects
Source Dependent Variable Type III Sum of
Squares df
Mean
Square F Sig.
Corrected
Model
Agent Motivation 3.476a 1 3.476 1.973 0.161
Friends/Relatives .122b 1 0.122 0.068 0.794
Advertising .402c 1 0.402 0.227 0.634
Family member .077d 1 0.077 0.057 0.812
Familiarity .684e 1 0.684 0.334 0.563
Habit of savings .756f 1 0.756 0.403 0.526
Company Scheme 4.407g 1 4.407 2.114 0.146
Image of Company 1.621h 1 1.621 0.817 0.366
Type of policy 3.974i 1 3.974 1.824 0.177
Intercept
Agent Motivation 8895.476 1 8895.476 5049.110 0.000
Friends/Relatives 7667.593 1 7667.593 4316.231 0.000
Advertising 7661.745 1 7661.745 4325.194 0.000
Family member 8213.706 1 8213.706 6026.896 0.000
Familiarity 6752.020 1 6752.020 3299.390 0.000
Habit of savings 7319.527 1 7319.527 3904.841 0.000
Company Scheme 6716.286 1 6716.286 3222.055 0.000
Image of Company 6942.492 1 6942.492 3501.482 0.000
Type of policy 6544.616 1 6544.616 3003.496 0.000
Geographic
Locality
Agent Motivation 3.476 1 3.476 1.973 0.161
Friends/Relatives 0.122 1 0.122 0.068 0.794
Advertising 0.402 1 0.402 0.227 0.634
Family member 0.077 1 0.077 0.057 0.812
Familiarity 0.684 1 0.684 0.334 0.563
Habit of savings 0.756 1 0.756 0.403 0.526
Company Scheme 4.407 1 4.407 2.114 0.146
Image of Company 1.621 1 1.621 0.817 0.366
Type of policy 3.974 1 3.974 1.824 0.177
Source: Computed from Primary data
The estimated marginal mean and MANOVA Tables 4.14, 4.15, and 4.16, indicates that the mean scores
of nine variables in motivating factors to taken together vary over the policy in the area location, and that the
motivating factors in urban is higher than rural, as the mean values are very low in rural of agent motivation
(4.003), friends/relatives (3.806) advertising (3.762), family member (3.912), familiarity (3.522), company
scheme (3.457), and type of policy (3.416). The mean value is low in urban in habit of savings (3.667) and
image of the company (3.553). The statistical significance of the variation of the mean confirms this. Moreover,
the MANOVA characterized by powerful Pillai‟s Trace test is significant at five per cent level (F 2.634 with
p=0.005<005). However, the nine variables for the two geographic location are taken independently, variation
not found statistically significant in the test of between-subjects effects (p>0.05).
It is concluded that, the area-wise motivation are taken independently, all the motivation to take the
policy except savings and image of the company are found higher in rural areas than the urban areas, variation
can also be found statistically significant in the test of motivation of to take life insurance products.
International Journal of World Research, Vol: I Issue XXIX, May 2016, Print ISSN: 2347-937X
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DEMOGRAPHIC PROFILE AND POLICYHOLDERS SATISFACTION ON SERVICES OFFERED
BY THE LIC
This section is devoted to testing the significant difference between demographic profile of the
respondents with respect to policyholders satisfaction on services offered by the LIC (Product Attributes,
Product Services, Product Information, Risk Coverage, Knowledge of Agents, Physical facilities in the LIC, and
service representative) in Nagapattinam District. The following null hypothesis has been formulated.
H0: 2 “There is no significant difference between demographic profile and policyholders’ level of
satisfaction”
H0:2(a) “There is no significant difference between age and policyholders’ satisfaction on product
attributes”
One way ANOVA is applied to ascertain if there were any significant difference between age and the
satisfaction of services provided by the LIC.
Table 5: Age and Satisfaction of Services
Statements Age N Mean Std.
Deviation Std. Error F Value P Value
Product
Attributes
Below 20 39 31.28 11.82 1.89
4.762 0.001*
21 to 30 86 35.44 10.29 1.11
31 to 40 182 36.85 12.97 0.96
41 to 50 116 37.03 11.21 1.04
51 – 60 73 42.00 14.26 1.67
60 and above 64 38.72 10.75 1.34
Total 560 37.17 12.30 0.52
Product Services
Below 20 39 15.13 6.16 0.99
4.113 0.001*
21 to 30 86 16.73 5.07 0.55
31 to 40 182 17.53 6.97 0.52
41 to 50 116 17.77 6.29 0.58
51 – 60 73 20.21 8.48 0.99
60 and above 64 18.81 4.86 0.61
Total 560 17.79 6.62 0.28
Product
Information
Below 20 39 31.13 11.51 1.84
5.031 0.001*
21 to 30 86 35.44 9.83 1.06
31 to 40 182 36.86 12.74 0.94
41 to 50 116 37.17 10.87 1.01
51 – 60 73 42.00 14.26 1.67
60 and above 64 38.64 10.60 1.33
Total 560 37.18 12.07 0.51
Risk Coverage
Below 20 39 15.44 5.89 0.94
5.320 0.001*
21 to 30 86 17.41 5.32 0.57
31 to 40 182 18.31 6.51 0.48
41 to 50 116 17.90 5.78 0.54
51 – 60 73 21.05 7.06 0.83
60 and above 64 19.09 5.67 0.71
Total 560 18.33 6.25 0.26
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Knowledge
Levels of Agents
Below 20 39 12.00 4.80 0.77
3.952 0.002*
21 to 30 86 13.50 3.78 0.41
31 to 40 182 14.19 5.54 0.41
41 to 50 116 14.42 5.18 0.48
51 – 60 73 16.16 6.78 0.79
60 and above 64 14.78 3.83 0.48
Total 560 14.31 5.27 0.22
Physical
facilities in the
LIC
Below 20 39 30.28 12.03 1.93
3.673
0.003*
21 to 30 86 33.85 9.90 1.07
31 to 40 182 35.19 14.05 1.04
41 to 50 116 35.68 12.65 1.17
51 – 60 73 40.41 16.95 1.98
60 and above 64 36.88 11.01 1.38
Total 560 35.69 13.32 0.56
Response of
Service
Representative
Below 20 39 21.87 8.10 1.30
5.928 0.001*
21 to 30 86 23.59 7.60 0.82
31 to 40 182 25.39 9.02 0.67
41 to 50 116 24.97 8.26 0.77
51 – 60 73 29.56 9.71 1.14
60 and above 64 26.48 7.99 1.00
Total 560 25.45 8.76 0.37
Source: Computed from Primary data
The obtained „F‟ value is 4.762 and it is significant at 5 per cent level. The value indicates that there is a
significant mean difference between policyholders satisfaction with product attributes. Hence, the stated
hypothesis of (H0: 5(a)) “there is no significant difference between age and policyholders satisfaction on
product attributes” is rejected. The obtained „F‟ value is 4.113 and it is significant at 5 per cent level. The value
indicates that there is a significant mean difference between policyholders satisfaction with product services.
Hence, the stated hypothesis of (H0: 5(b)) “there is no significant difference between age and policyholders
satisfaction on product services” is rejected. The obtained „F‟ value is 5.031 and it is significant at 5 per cent
level. The value indicates that there is a significant mean difference between policyholders satisfaction with
respect to product information. Hence, the stated hypothesis of (H0: 5(c)) “there is no significant difference
between age and policyholders satisfaction on product information” is rejected. The obtained „F‟ value is 5.320
and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between
policyholders satisfaction with respect to risk coverage. Hence, the stated hypothesis of (H0: 5(d)) “there is no
significant difference between age and policyholders satisfaction on risk coverage” is rejected. The obtained „F‟
value is 3.952 and it is significant at 5 per cent level. The value indicates that there is a significant mean
difference between policyholders satisfaction with respect to agent knowledge. Hence, the stated hypothesis of
(H0: 5(e)) “there is no significant difference between age and policyholders satisfaction on agent knowledge” is
rejected. The obtained „F‟ value is 3.763 and it is significant at 5 per cent level. The value indicates that there is
a significant mean difference between policyholders satisfaction with respect to physical facility. Hence, the
stated hypothesis of (H0: 5(f)) “there is no significant difference between age and policyholders satisfaction on
physical facility” is rejected. The obtained „F‟ value is 5.928 and it is significant at 5 per cent level. The value
indicates that there is a significant mean difference between policyholders satisfaction with respect to service
personal. Hence, the stated hypothesis of (H0: 5(g)) “there is no significant difference between age and
policyholders satisfaction on response of service personal” is rejected.
Further, the mean value indicates that the age category of below 20 years are less satisfied with the
products attributes, product services, information, risk coverage, agent knowledge, physical facilities and
service representative than the other age category of respondents.
International Journal of World Research, Vol: I Issue XXIX, May 2016, Print ISSN: 2347-937X
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DEMOGRAPHIC PROFILE AND POLICYHOLDERS PROBLEMS
This section is devoted to testing the significant difference between demographic profile of the
respondents with respect to policyholders‟ problems in the services agents, general problems and compliant
behaviour in the Nagapattinam District. The following null hypothesis has been formulated.
H0: 1 “There is no significant difference between demographic profile and problems faced by policyholders”.
H0: 1(a) “There is no significant difference between demographic profile and problems in using agent
services”.
H0: 1(b) “There is no significant difference between demographic profile and policyholder general
problems”.
H0: 1(c) “There is no significant difference between demographic profile and policyholder problems in
compliant behaviour”.
5.3.1 To test the significant difference between age and policy holders problems in the LIC services. One way ANOVA is applied to ascertain the any significant difference between age and policy holders‟
problems in the LIC services.
Table 6: Age and Policy Holders Problems in the Services
Problems
in the
using of
services of
the Agents
Age N Mean Std.
Deviation
Std.
Error F value P value
Below 20 39 18.10 4.49 0.72
5.440 0.001*
21 to 30 86 20.85 2.42 0.26
31 to 40 182 20.52 3.15 0.23
41 to 50 116 19.90 3.81 0.35
51 – 60 73 21.07 2.74 0.32
60 and above 64 20.16 3.00 0.37
Total 560 20.30 3.31 0.14
General
Problems
Below 20 39 31.21 7.09 1.13
2.471 0.032*
21 to 30 86 31.21 5.71 0.62
31 to 40 182 31.36 6.37 0.47
41 to 50 116 31.07 6.40 0.59
51 – 60 73 31.85 5.76 0.67
60 and above 64 28.33 8.96 1.12
Total 560 30.98 6.65 0.28
Complaint
Behaviour
Below 20 39 16.13 2.99 0.48
3.289 0.006*
21 to 30 86 16.20 2.70 0.29
31 to 40 182 16.26 2.90 0.21
41 to 50 116 15.34 3.23 0.30
51 – 60 73 16.45 2.65 0.31
60 and above 64 14.95 3.71 0.46
Total 560 15.93 3.05 0.13
Source: Computed from Primary data
The calculated F value of 5.440 and it is significant five per cent level. The value indicates that there is a
significant difference between age and policy holder problems in using agent services. Hence, the stated
hypothesis of (H0:1(a)) “there is no significant difference between age and policy holder problems in using
agent services” is rejected.
The calculated F value of 2.471 and it is significant five per cent level. The value indicates that there is a
significant difference between age and policy holder general problems. Hence, the stated hypothesis of
(H0:1(b)) “there is no significant difference between age and policy holder general problems” is rejected.
International Journal of World Research, Vol: I Issue XXIX, May 2016, Print ISSN: 2347-937X
www.apjor.com Page 91
The calculated F value of 3.289 and it is significant five per cent level. The value indicates that there is a
significant difference between age and policy holder compliant behaviour. Hence, the stated hypothesis of
(H0:1(c)) “there is no significant difference between age and policy holder problems in compliant behaviour” is
rejected.
Further, the age category of 51 to 60 years is having more problems of agent services, general problems
and compliant behviour than the other category of policy holders.
SUMMARRY OF MAJOR FINDINGS
Most of the policy holders are clearly known the life insurance website of which constitutes 95.71 per
cent and rest of 4.29 per cent of the policy holders are not known the LIC website.
The usage of website is helpful and very helpful constitutes 32.14 per cent and 29.46 per cent
respectively. However, it is not useful to the policy holders and average level of helping constitutes
27.50 per cent and 6.61 per cent respectively.
Out total 143 policy holders constitutes 25.54 per cent, 295 policy holders constitutes 52.68 per cent and
47 policy holders constitutes 8.39 per cent are very high, high and moderate level awareness
respectively in the insurance plans of LIC. However, 17 policy holders constitutes 3.04 per cent and 58
policy holders constitutes 10.36 per cent low and very level awareness about the LIC insurance plans.
The surrender of policy is for a long period of time and the policyholders think about the legal
formalities is more at the time of settlement are dominant problem among the policyholders with
acceptance score of 4.09 and 3.99 respectively. The branch employees are not to treat the customers
politely with acceptance score of 2.76, undue favouritism to some policyholders with acceptance score
of 2.72, negative attitude of the agents and other officials for rendering service with acceptance score of
3.70 and rate of interest on loan is not reasonable also with acceptance score of 3.70 towards the policy
holders. The respondents assign the least score of 2.51 for the branches are never customer oriented.
SUGGESTIONS
The study reveals that some of the policyholders are ready switch over from LIC to other insurance
company due to high return, low premium, maximum risk converge, further growth and popularity.
Hence, it is suggested to LIC of India has to evaluate the policyholders perception on the services at
fixed interval level to identify and fulfill their requirements to retain them.
The study also reveals that the policyholders dissatisfaction regarding the adequate seating arrangement
and drinking water facility the LIC office. It is to provide sufficient space for seating arrangement and
provided drinking water facility in the LIC office.
There is a need for the insurance services to reaffirm themselves in view of the stiff competition.
Therefore, the LIC of India shall have to reorient them in terms of the customer service parameters to
instill the concept of quality service in the mind of the policyholders and further in terms of growth.
In present competitive world, customer satisfaction has become an important aspect to retain the policy
holders, not only growth of the corporation but also to survive. Policy holders‟ service is the critical
success factor and insurers through their best services would be able to reposition and differentiate itself
from private life insurance.
The policyholders in the Life Insurance Corporation are to feel that the settlement process is more
formalities. Hence, it is suggested that the claim settlement process should be made fast and must not
involve lengthy decision making process.
A plan with high benefits at low premium rates should be planned to facilitate all sections of the
policyholders.
Extension branches can be opened in rural areas to facilitate the policyholders. Working hours can be
increased to facilitate the payment of premium to the policy holders.
International Journal of World Research, Vol: I Issue XXIX, May 2016, Print ISSN: 2347-937X
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Some special focus should be laid on individual risk coverage while designing the products to
agriculturalists.
The company, if possible should invest in advertising, conduct road shows, and spend money on
hoardings, so that it can create awareness about its unknown products.
CONCLUSION
The present study concludes that, the LIC of India is the leading public sector insurance company in
India has facing very stiff competition from the new players entering the market. LIC of India is facing
increased competition on one front and a decline in the market share on the other hand. LIC has always been in
the forefront of utilizing its recourses effectively. It has been striving to achieve effectiveness and excellence in
its business operations. The present study suggested that the measures such as special events for policyholders,
providing of prompt service, reducing the time period of surrendering the policy, increase the loan amount with
policy, improvement in infrastructure, creativity and innovativeness, understanding the policyholders needs,
policyholders contact programmes, providing update information, staff involvement, user friendly skills,
customer compliant monitoring cell and quality improvement strategy will improve service quality of the LIC
of India. This study is also found that majority of them willing to continue with LIC. This shows their trust in
the Life Insurance Corporation. The LIC must know the need of their policyholders is to serve better than any
other private players” has made LIC to remain as the market leader.
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