“TO ASSES THE PERCUED CUSTOMER SATISFATION TOWARDS THE SERVICE QUALITY PROVIDED BY THE LIC BY...

A

PROJECT REPORT

ON

“TO ASSES THE PERCUED CUSTOMER SATISFATION TOWARDS THE SERVICE QUALITY PROVIDED BY THE

LIC BY USING THE TOOL OF GAP ANALYSIS” FOR BAREILLY CITY

FOR THE PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

(2007-2009)

UNDER THE KINDGUIDENCE OF:

MR.PANKAJ DIXIT COURSE COORDINATOROF RBMI BAREILLY

SUBMITTED TO:

RAKSHPAL BAHADUR MANGEMENT INSTITUTE BAREILLY

(AFFILATED TO: U.P. TECHNICAL UNIVERSITY LUCKNOW)

SUBMITTED BY:

HAMENTSINGH

MBA 4TH SEM.

DECLARATION

DECLARATION

I, Mr. Hament Singh,

hereby declare that this project report is the record of authentic work carried out by me

during the academic session of MBA 4th semester 2009 and has not been submitted to any other

University or Institute for the award of any degree/diploma.

Hament Singh

MBA 4th Sem.

ACKNOWLEDGMENT

ACKNOWLEDGMENT

It is a pleasure to record my thanks and gratitude to the Director General. Dr. Manish Sharma,

Director Dr Neeraj Saxena who provide me the opportunity to conduct this research. I am also

thankful to all my responders and my friends whose generous help and support enable me to

complete this study with in the stipulated time period.

I am very thankful to the Course Coordinator Mr. Pankaj Dixit for consult and guidance

provides me which I am necessary for completing this study.

Lastly, I want to gratitude the god who provide me this opportunity and always help me

in life.

However, I take the responsibility of all my shortcomings.

Hament Singh

MBA 4th Sem.

PREFACE

PREFACE

This research has been conducting to know the customer perception towards the service

quality of LIC. The basic objective of this research was to understand the customer

expectations towards the LIC. It is hard for every organization to fulfill the requirement

of every customer. This study has been done to know the customer perception what they

think whether organization is capable to provide them expected service quality what

customer want. I have done a effort to know the customer satisfaction for service quality.

This research project proved very beneficial for me it provides a practical

knowledge about the customer expectations and the service organizations working how

they manage the customer desires. I am happy that a I get a chance to to the study such

meaning full topic which provide me a practical knowledge..

Really, this Project work was quite interesting, inspiring, satisfying, knowledge,

gaining and academically rewarding.

Hament Singh

MBA 4th Sem.

TABLE OF CONTENT

PART-A: THEORITICAL FRAMEWORK

1. Introduction of Service

3. Scenario service marketing in India market of India

4. Service Quality and its approach

5. Customer Expectations

6. Service Quality Model

7. Determinants of Service Quality

PART-B: STUDY OF PRACTICAL

1. Introduction to research topic in the context of Bareilly.

2. Company profile

3. Objectives of the study

4. Research Problem

5. Importance of the study

6. Research methodology

7. Observation and analysis

8. Findings

9. Limitations

10. Suggestions

11. Conclusions

a) Questionnaire

b) Bibliography

INTRODUCTION

INTRODUCTION

SERVICE

If we define service it is any act or performance that one party can offer to another that is

essentially intangible and does not result in the ownership of anything. Its production

may or may not be tied to a physical product.

Manufacturers, distributors, and retailers can provide value- added services or

simply excellent customer service to differentiate them.

SERVICE INDUSTRIES EVERYWHERE

The government sector, with its courts, employment services, hospitals, loan agencies,

military services, polices and fire departments, postal service, regulatory agencies, and

schools is in the service business. The private nonprofit sector, with its museums,

charities, churches, colleges. Foundations and hospitals, is the service business, a good

part of the business sector with its airlines, banks, hostel insurance companies, law firms,

management consulting firms, management consulting firms , medical practices, motion

pictures etc is in the service business.

Many workers in the manufacturing sector, such as computer operators, accounts

and legal staff, are really service providers. IN facts they make up a service factory

providing services to the goods factory. And those in the retail sector, such as cashiers,

clerks, salespeople and customer service presentations are also providing a service.

SERVICE QUALITY

Service Quality nothing simply a satisfaction of the customer towards the service

provided by the service provider. Really it is hard to know the quality of service. A

service provider can not provide the same service all time. But few services are much

same hard to differentiate the quality. Actually the word service means different things to

people according to the context. There may be five perspectives to identify the service

quality.

TRANSCEDENT APPROACH: - The transcendent view of quality is

synonymous with innate excellence: a mark of uncompromising standards and

high achievement. The viewpoint is often applied to the performing and visual

arts. It argues that people learn to recognize quality only through the experience

gained from repeated exposure. From a practical standpoint however, suggesting

that managers or customers will know quality when they see it is not very helpful.

PRODUCT BASED: - The product based approach sees quality as a precise and

measurable variable. Differences in quality, it argues reflect differences in the

amount of an ingredients or attribute possessed by the product. Because this view

is totally objective, it falls to account for differences in the testes, needs and

preferences of individual’s customers (or even entire market segments.)

USER BASED APPROACH: - The user based definitions start with premise

that quality lies in the eyes of the beholder. These definitions equate quality with

maximum satisfaction. This subjective demand oriented perspective recognizes

that different customers have different wants and needs.

MANUFACTURING BASED APPROACH: - The manufacturing based

approach is supply based and is concerned primarily with engineering and

manufacturing practices. (In services, we would say that quality is operations

driven.) If focus on conformance to internally developed specifications, which are

often driven by productivity and cost containment goals.

VALUE BASED APPROACH: - Value based definitions define quality in terms

of value and prices. By considering the tradeoff between performance (or

conformance) and price, quality comes to be defined as “affordable excellence”

CUSTOMER EXPECTATIONS

Customer expectations are beliefs about service delivery that functions as

standards or references points against which performance is judged. Because customers

compare their perceptions about customer expectations is critical to services marketers.

Knowing what the customer expects is the first and possibly most critical step in

delivering quality service. Being wrong about what customers want can mean losing a

customers business when another company hits the target exactly. Being wrong can also

mean expending money, time, and other resources on things that don’t count to the

customers. Being wrong can even surviving in a fiercely competitive market.

Customers form services expectations from many sources such as past

experiences, word of mouth and achieving. In general customers compare the perceived

service with the expected service if the perceived service falls below the expected

service, customers are disappointed. If the perceived service meets or exceeds their

expectations. Successful companies add benefits to their offering that only satisfy

customers but surprise and delight them. Delighting customer expectations is a matter of

exceeding expectations.

SEVICE QUALITY MODEL

Parsuraman, Zeithmal and Berry formulated a service quality, model that highlighted the

main requirements for delivering high quality. The model is as follows.

1. GAP BETWEEN CONSUMER EXPECTATIONS AND

MANAGEMENT PERCEPTION:

Management does not always correctly perceive want. This first type of gap is one

that exists between the expected service and the company perception of. As we

have seen, expected service is the highest level of desired service existing in the

minds of the customers. Company perceptions are nothing but the company’s

understanding of what the customer want. This is the gap brought about by either

ignorance of misunderstanding of the customer expectations.

2. GAP BETWEEN MANAGEMENT PERCEPTION AND

SERVICE QUALITY SPECIFICATIONS

The customer may have service standard expectations that may be either higher or

low than the standards set by the organization. It may be due to the absence of

customer driven standards of service quality, absence of formal quality control

goals and vague or undefined service design.

3. GAP BETWEEN SEVICE QUALITY SPECIFICATIONS AND

SERVICE DEIVERY

Personnel might be poorly trained, or incapable of or unwilling to meet the

standards or they may be held to conflicting standards, such as taking time to

customer and servicing them fast.

4. GAP BETWEEN SERVICE DELIVERY AND EXTERNAL

COMMUNICATIONS:

Consumer expectations are affected by statements made by company

representatives and ads. The typically reasons are the:- Unrealistic

communication to customers, Overpromising through advertisement or personal

selling and Lack of internal communications.

SERVICE QUALITY MODEL

DETERMINANTS OF SERVICE QUALITY

Based on the service quality determinant can be of five types:-

RELIABILITY: - The ability to perform the promised service dependably

and accurately.

PESPONSIVENESS: - The willingness to help customers and to provide

service.

ASSURANCE: - The knowledge and courtesy of employees and their ability

to convey trust and confidence.

EMPATHY: - The provision of caring individualized attention to customers.

TANGIBLES; - The appearance of physical facilities, equipment, personnel

and communication materials.

Based on these five factors, 21 item SERQUAL scale may be developed

as follows:-

SERVQUAL ATTRIBUTES

RELIABILITY EMPATHY

Providing service as promised Giving customers individuals attentionDependability in handling customers service problems Employees who deal with customers in a caring

Providing services right the first time Fashion.

Providing services at the promised time Having the customer's best interests at heart

Maintaining error free records Employees who understand the needs of their

RESPOSIVENESS Customers.

Keeping customer informed as to when services Convenient business hours.

Prompt service to customers TANGIBLES

Willingness to help customers requests Modern equipment

ASSURANCE Visually appealing facilities.

Employees who instill confidence in customersEmployees who have a neat, personal appearance.

Making customers feel safe in their transactionsVisually appealing materials associated with the

Employees who are consistently courteous Service.

Employees who have the knowledge to answer

Customer questions.

INTRODUCTIONOF THE

RESEARCH TOPIC

INTRODUCTION

A life Insurance Industry in India is on the rise with less than of the insurable population

being insured, the potential for the growth of the industry is inevitable. With increase

number of player in the market the going will be tough but surely it will be rewarding for

those who will be align their products with customer expectations. Identifying the gap is

the customer expectations and the real services of the life insurance services of the LIC

products. In business and economics gap analysis is a business assessment tool enabling a

company to compare its actual performance with its potential performance. At its core are

two questions:-

Where it is?

Where it want to be?

This goal of the Gap Analysis is to be identifying the gap between the optimized

allocation and integration of the inputs and the current level of allocation. This helps

provide the company with insight into areas which could be improved. The gap analysis

process involves determining and approving the variance between business requirement

and current capabilities Gap Analysis naturally flows from benchmarking and other

assessments once the general expectations of performance in the industry is understood, it

is possible to compare that expectations with the level of performance at which the

company currently function as. This comparison becomes the gap analysis. Such analysis

can be performed at the strategic or operations level of an organization.

Gap Analysis is a formal study of what a business is doing currently and where it want to

be go in the future. it can be conducted in different perspective, as follows:-

Organization (Human Resource)

Business Direction

Business Process

Information Technology

Gap Analysis is provides a foundation for measuring investments of time, money and

human resources required to achieve a particular outcome "Gap Analysis" has also been

used as a means for deification of now will a product or solution meets a targeted need or

set of requirements. In this case "Gap" can be used as a ranking of "Good" "Average"

"Poor".

COMPANY PROFILE

LIFE INSURANCE CORPORATTION OF INDIA

The story of insurance is probably as old as the story of mankind. The same instinct that

prompts modern businessmen today to secure themselves against loss and disaster existed

in primitive men also. They too sought to avert the evil consequences of fire and flood

and loss of life and were willing to make some sort of sacrifice in order to achieve

security. Though the concept of insurance is largely a development of the recent past,

particularly after the industrial era – past few centuries – yet its beginnings date back

almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818.

Oriental Life Insurance Company started by Europeans in Calcutta was the first life

insurance company on Indian Soil. All the insurance companies established during that

period were brought up with the purpose of looking after the needs of European

community and Indian natives were not being insured by these companies. However,

later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance

companies started insuring Indian lives. But Indian lives were being treated as sub-

standard lives and heavy extra premiums were being charged on them. Bombay Mutual

Life Assurance Society heralded the birth of first Indian life insurance company in the

year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with

highly patriotic motives, insurance companies came into existence to carry the message

of insurance and social security through insurance to various sectors of society. Bharat

Insurance Company (1896) was also one of such companies inspired by nationalism. The

Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United

India in Madras, National Indian and National Insurance in Calcutta and the Co-operative

Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative

Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great

poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and

Swadeshi Life (later Bombay Life) were some of the companies established

during the same period. Prior to 1912 India had no legislation to regulate insurance

business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund

Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the

premium rate tables and periodical valuations of companies should be certified by an

actuary.

The first two decades of the twentieth century saw lot of growth in insurance business.

From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176

companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming

of insurance companies many financially unsound concerns were also floated which

failed miserably. The Insurance Act 1938 was the first legislation governing not only life

insurance but also non-life insurance to provide strict state control over insurance

business. The demand for nationalization of life insurance industry was made repeatedly

in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance

Act 1938 was introduced in the Legislative Assembly. However, it was much later on the

19th of January, 1956, that life insurance in India was nationalized. About 154 Indian

insurance companies, 16 non-Indian companies and 75 provident were operating in India

at the time of nationalization. Nationalization was accomplished in two stages; initially

the management of the companies was taken over by means of an Ordinance, and later,

the ownership too by means of a comprehensive bill. The Parliament of India passed the

Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance

Corporation of India was created on 1st September, 1956, with the objective of spreading

life insurance much more widely and in particular to the rural areas with a view to reach

all insurable persons in the country, providing them adequate financial cover at a

reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its

corporate office in the year 1956. Since life insurance contracts are long term contracts

and during the currency of the policy it requires a variety of services need was felt in the

later years to expand the operations and place a branch office at each district headquarter.

Re-organization of LIC took place and large numbers of new branch offices were opened.

As a result of re-organization servicing functions were transferred to the branches, and

branches were made accounting units. It worked wonders with the performance of the

corporation. It may be seen that from about 200.00 corers of New Business in 1957 the

corporation crossed 1000.00 cores only in the year 1969-70, and it took another 10 years

for LIC to cross 2000.00 crore mark of new business. But with re-organization happening

in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on

new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional

offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100

divisional offices and connects all the branches through a Metro Area Network. LIC has

tied up with some Banks and Service providers to offer on-line premium collection

facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition

to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been

commissioned at Mumbai, Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New

Delhi, Pune and many other cities. With a vision of providing easy access to its

policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite

offices are smaller, leaner and closer to the customer. The digitalized records of the

satellite offices will facilitate anywhere servicing and many other conveniences in the

future. LIC continues to be the dominant life insurer even in the liberalized scenario of

Indian insurance and is moving fast on a new growth trajectory surpassing its own past

records. LIC has issued over one crore policies during the current year. It has crossed the

milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy

growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented

performance records in various aspects of life insurance business. The same motives

which inspired our forefathers to bring insurance into existence in this country inspire us

at LIC to take this message of protection to light the lamps of security in as many homes

as possible and to help the people in providing security to their families.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE

INSURANCE BUSINESS IN INDIA

1818: Oriental Life Insurance Company, the first life insurance company on

Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance

company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by

the central government and nationalized. LIC formed by an Act of Parliament,

viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the

Government of India.

SOME OF THE IMPORTANT MILESTONES IN THE GENERAL

INSURANCE BUSINESS IN INDIA

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in the

year 1850 in Calcutta by the British.

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact

all classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized

the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four company’s viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the

Oriental Insurance Company Ltd. and the United India Insurance Company

Ltd.

OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural areas and to the

socially and economically backward classes with a view to reaching all

insurable persons in the country and providing them adequate financial cover

against death at a reasonable cost.

Maximize mobilization of people's savings by making insurance-linked savings

adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the interest

of the community as a whole; the funds to be deployed to the best advantage of

the investors as well as the community as a whole, keeping in view national

priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that the

moneys belong to the policyholders.

Act as trustees of the insured public in their individual and collective capacities.

Meet the various life insurance needs of the community that would arise in the

changing social and economic environment.

Involve all people working in the Corporation to the best of their capability in

furthering the interests of the insured public by providing efficient service with

courtesy.

Promote amongst all agents and employees of the Corporation a sense of

participation, pride and job satisfaction through discharge of their duties with

dedication towards achievement of Corporate Objective.

MISION AND VISION

Mission

"Explore and enhance the quality of life of people through financial security by

providing products and services of aspired attributes with competitive returns, and

by rendering resources for economic development."

Vision

"A trans-nationally competitive financial conglomerate of significance to societies

and Pride of India."

BOARD OF DIRECTORS

Members on the Board of The Corporation

Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC)

Shri. Thomas Mathew T. (Managing Director - LIC)

Shri. A.K. Dasgupta (Managing Director - LIC)

Shri. Arun Ramanathan (Finance Secretary & Secretary (Financial Services),

Department of Financial Services, Ministry of Finance, Govt. of India)

Smt. Sindhushree Khullar (Secretary, Sport and Youth Affairs, Ministry of Sports and

Youth Affairs, Govt. of India)

Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)

Shri. T.C. Venkat Subramanian (Chairman & Managing Director. Export Import Bank

of India)

Dr. Sooranad Rajashekhran

Shri. Monis R. Kidwai

LIC operates all over India

OPERATIONS

LIC has been one of the pioneering organizations in India who introduced the leverage of

Information Technology in servicing and in their business. Data pertaining to almost 10

crore policies is being held on computers in LIC. We have gone in for relevant and

appropriate technologies are the years. 1964 saw the introduction of computers in LIC.

Unit Record Machines introduced in late 1950’s were phased out in 1980’s and replaced

by Microprocessors based computers in Branch and Divisional Offices for Back Office

Computerization. Standardization of Hardware and Software commenced in 1990’s.

Standard Computer Packages were developed and implemented for ordinary and Salary

Savings Scheme (SSS) Policies.

FRONT END OPERATIONS

With a view to enhancing customer responsiveness and services , in July 1995, LIC

started a drive of On Line Service to Policyholders and Agents through Computer. This

on line service enabled policyholders to receive immediate policy status report , prompt

acceptance of their premium and get Revival Quotation, Loan Quotation on demand.

Incorporating change of address can be done on line. Quicker completion of proposals

and dispatch of policy documents have become a reality. All our 2048 branches across

the country have been covered under front-end operations. Thus all our 100 divisional

offices have achieved the distinction of 100% branch computerization. New payment

related Modules pertaining to both ordinary & SSS policies have been added to the Front

End Package catering to Loan, Claims and Development Officers’ Appraisal. All these

modules help to reduce time-lag and ensure accuracy.

METRO AREA NETWORK

A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in

November, 1997, enabling policyholders in Mumbai to pay their Premium or get their

Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the

city. The System has been working successfully. More than 10,000 transactions are

carried out over this Network on any given working day. Such Networks have been

implemented in other cities also.

WIDE AREA NETWORK

All 7 Zonal Offices and all the MAN centers are connected through a Wide Area

Network (WAN). This will enable a customer to view his policy data and pay premium

from any branch of any MAN city. As at November 2005, we have 91 centers in India

with more than 2035 branches networked under WAN.

INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS).

IVRS has already been made functional in 59 centers all over the country. This would

enable customers to ring up LIC and receive information (e.g. next premium due, Status,

Loan Amount, and Maturity payment due, Accumulated Bonus etc.) about their policies

on the telephone. This information could also be faxed on demand to the customer.

LIC ON THE INTERNET

Our Internet site is an information bank. We have displayed information about LIC & its

offices. Efforts are on to upgrade our web site to make it dynamic and interactive. The

addresses/e-mail Ids of urban Zonal Offices, Zonal Training Centers, Management

Development Center, Overseas Branches, Divisional Offices and also all Branch Offices

with a view to speed up the communication process.

AWARDS

Golden Peacock Innovative Product / Service Award - 2009

Loyalty Awards - 2009

Readers Digest Trusted Brand Award 2008 in the Platinum category.

CNBC Awaaz Consumer Awards 2008

NDTV Profit Business Leadership Award 2008

INDY's Silver Award for Best Corporate Film

INDY's Silver Award for Best in House Magazine

IT USER 2008 NASCOM

ALSO HONOURED BY

Dr. Manmohan Singh

Prime Minister of India

Shri. P. Chidambaram

VARIOUS LIC INSURANCE PRODUCTS

INDIVIDUAL PLANS

As individuals it is inherent to differ. Each individual’s insurance needs and requirements are different from that of the others. LIC’s Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Jeevan Anurag Komal Jeevan CDA Endowment Vesting At 21 Marriage Endowment Or

Educational Annuity Plan CDA Endowment Vesting At 18 Jeevan Kishore Jeevan ChhayaChild Career Plan Child Future PlanChild Fortune Plus

Jeevan Aadhar Jeevan Vishwas

The Endowment Assurance Policy The Endowment Assurance Policy-Limited Payment Jeevan Mitra(Double Cover Endowment Plan) Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Anand New Janaraksha PlanJeevan Amrit

Jeevan Shree-I Jeevan Pramukh

The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Bima Bachat

Jeevan Bharati - I

The Whole Life Policy The Whole Life Policy- Limited Payment The Whole Life Policy- Single Premium Jeevan Anand Jeevan Tarang

PENSION PLANSPension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

Jeevan Nidhi

Jeevan Akshay-VI

New Jeevan Dhara-I

New Jeevan Suraksha-I

UNIT PLANS

Unit plans are investment plans for those who realise the worth of hard-earned money. These plans help you see your savings yield rich benefits and help you save tax even if you don't have consistent income.

Market Plus I

Profit Plus

Fortune Plus

Money Plus-I

Child Fortune Plus

SPECIAL PLANS

LIC’s Special Plans are not plans but opportunities that knock on your door once in a lifetime. These plans are a perfect blend of insurance, investment and a lifetime of happiness!

New Bima Gold

Bima Nivesh 2005

Jeevan Saral

Jeevan Madhur

Health Plus

GROUP SCHEMES

Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers, associations, societies etc. and allows you to enjoy group benefits at really low costs.

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI

Group Gratuity Scheme

Group Super Annuation Scheme

Group Savings Linked Insurance Scheme

Group Leave Encashment Scheme

Group Mortgage Redemption Assurance Scheme

Gratuity Plus

Group Critical Illness Rider

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana

Aam Admi Bima Yojana

OBJECTIVE OF

THE STUDY

OBJECTIVE OF THE STUDY

This research is conducting for knowing the customer perceived satisfaction

towards the service quality of LIC. LIC is the first Insurance Company of India. It is

presently enjoying a huge market share of Insurance. So with the help of Gap Model the

emphasis on the research is to know the gap of perceived Service Quality and the actual

Service Quality of the LIC. The objective of this research may be as follows:-

To know whether customer is satisfied by the service quality of LIC.

To know whether organization service quality is up to the mark according to the

customer expectations.

To know the gap between perceived customer satisfaction and the customer

expectations towards the service quality of LIC.

To know whether good service is provided by the LIC to its customers,

organization is able to full fill customer needs easily.

To search the factors this exceeds customer expectations.

To know how LIC can may reach or exceed customer expectations.

RESEARCH PROBLEM

RESEARCH PROBLEM

When any type of the research is being done, then research problem must be cleared. It is

said if the problem is clear, it means half problem is solved. The main problem is this

type of study is that is quite hard task to measure the accurate gap between customer

expectations and the various life insurance services of LIC. Actually the gap analysis

usually arises due to the differences between adequate and desired service lower the zone

of tolerance. So for conducting this type of study usually these problems are arises:-

Not know what customer expect actually.

It is hard to convince the customers to give fair response.

It is practically hard to measure the gap of customer expectations and the service

quality provided by LIC, it may be differ for every customer.

Customer may have serious expectations that may be either higher or lower than

the standards set by the organization.

IMPORTANCE OF

THE STUDY

IMPORTANCE OF THE STUDY

This type of study helps organization to know customer expectations which are

unrealistic in nature.

It helps to organization to delight the customer.

This study help to know what are the factors responsible which increase customer

expectations, so that it may be fulfilled easily.

It helps the organization to know what customer expect actually.

It helps the organization to set the right type of standards.

It may help the organization to delivery the service up to the standards.

It helps the organization to set the quality control goals.

It avoids the vague or undefined service design.

RESEARCH METHODOLOGY

USED IN THE STUDY

RESEARCH METHODOLOGY

Research methodology is a description explanation and justification of various methods

of conducting research.

TYPE OF RESEARCH USED IN THE STUDY

CONSUMER RESEARH

Consumer research is a unique subset of marketing research, which merits the utilization

of specialized research methods that collect customer data and also enhance the

company’s relationship with its customers.

Really, marketing research comprises a form of applied sociological study, which

concentrates on understanding the behaviors, whims and preferences, mainly current and

future, of consumers in a market based economy.

SAMPLING

The sampling plan for the study decides the work area that is the population, which has to

be surveyed. A Brief idea about the sampling for this research consisting of its different

parameters is given below:

TYPE OF SAMPLING METHOD USED IN THE STUDY

JUDEGEMENTAL SAMPLING

In this type of the sampling the researcher uses his judgment to select population

members who are good source for accurate information.

SAMPLING UNIVERSE

This study is conducted if Bareilly and near by areas. So it will be true for Bareilly region

as follows.

SAMPLE SIZE

In this study sample size is of 50 peoples. Due to the shortage of time and un-availability

of expert team the research size is taken short so that the research can be done easily.

METHOD OF DATA COLLECTION

The research was carried out through surey method with the help of a

QUESTIONNAIRE consisting of rank method question.due to flexibility , questionnaire

method is ideally suited for collection of primary data.

OBSERVATION, ANALYSIS

&

FINDINGS

Q1. Do you think that LIC is a Trustful Insurance Company?

Consumer Response for rating Frequency % In Percentage in %5 45 90% 4 4 8%3 1 2%2 0 0%in % 1 0 0%Total 50 100%

5 4 30%

20%40%60%80%

100%90%

8%2%

% of Consumer trust Response towards the Services of LIC

90% gives the 5 rating for trust.

8% gives the 4 rating.

2% gives the 3 rating

No customer gives the 2,1 rating

It means most of the consumer think that LIC is a trustful Insurance company to

insurance company to invest.

Q2.It is safe to invest money in LIC (security point of view)?

Consumer Response for rating Frequency % In Percentage in %

5 41 82%

4 9 18%

3 0 0%

2 0 0%in %

1 0 0%

Total 50 100%

82%

18%

% of Consumer Response towards the Seurity of LIC Servies

54

82% consumers give 5 rating.


It means most of the consumer things that LIC is safe to invest.


Q3. Do you think that LIC provides you a complete coverage?

% of Consumer Re-sponse that LIC provides them

Complete Coverage

0% 20% 40% 60%

38%

44%

18%3 4

5




It means most of the customers are agree that LIC provides them complete

coverage.

Q4.It is easy for you to assess the LIC Services without lot of effort?


% of Consumer Response how much easily...0%

10%

20%

30%

40%

50%

48%

34%

18%5 4

3

48% consumers give the 5 rating.



It means most of the consumers agree that LIC services is easy to get anywhere.

Q5. It is good that LIC provides Toll Free No. to resolve any query and to get any information?

32%

24%

30%

12% 2%

% of Consumer Response to provide Toll Free No. to resolve any problem and to get any information

5

4

3

2

1






It means that the consumers exist between 3 to 1 rating are not satisfy with toll

free facility.

Consumer Response for rating Frequency In Percentage in %5 16 32% 4 12 24%3 15 30%2 6 12% 1 1 2%Total 50 100%

Q6. When you have any complaint. Is the LIC service agent listen to you?


5 4 3 2 10%

10%

20%

30%

40%

14%

38% 40%

6% 2%

% of Consumer Response when they have any complaint . Is the

LIC Service agent listen them






It means around 8% consumers are not much happy, with the LIC agent.

According them they don’t listen them when they have any complaint.

Q7. LIC Service agent provides you complete information, before taking any LIC policy?


% of Consumer Response that C...0%

20%

40%

60%

5

4

3

2

18%

58%16% 8% 5 4 3

2




8% gives the 2 rating. And no one give 1 rating.

It means that 8% are disagreeing that LIC agents do not provide the complete

information.

Q8. Whether, company agent willing to meet you according to your time schedule?

%of Consumer Response that LIC agent meet him according to their schedule

0%

10%

20%

30%

40%

26%

34%30%

8%2%

54321

265% consumer gives the 5 rating.

Consumer Response for rating Frequency In Percentage in %5 13 26%% 4 17 34%3 15 30%2 4 8% 1 1 2%Total 50 100%





It means that 10% consumers are not agree that LIC agent meet there schedule of

time.

Q9. Are you satisfied with the services of LIC?

%of Consumer Re-sponse that they are satisfied the sevices

of LIC

0% 20% 40% 60%

46%

32%

22%3

4

5





No one give the 1and 2 rating.

It means that most of the customers are satisfied the LIC services.

Q10.Whether recovery of fund after maturity is easy?

28%

46%

22%

4%

% of Consumer Response that after ma-turity of LIC services Recovery of fund is

easy

5

4

3

2





4% consumers give the 2 rating. And no one give the 1 rating.

It means that 4% consumers are not agree that recovery of fund after maturity is

easy.

Q11.When there is any problem; does the service provider resolve it quickly?

20%

42%

28% 8% 2%

% of Consumer Response, when they have any problem It is resolve quickly

by the LIC Service Provider

5 4

3 2

1







It means that 10% consumers are disagree that there problem are not quickly

resolved by LIC service provider.

Q12.Whether LIC employees and agents generally cooperate with the customers?

% of Consumer Response that LIC em-plyoees and agent cooperate with

consumers

0%

20%

40%

60%

80%

100%

32%

48%

18%2%

1

3

4

5





No one give the 2 rating, but 2% consumer gives the 1 rating.

It means that 2% consumers are highly disagree

Q13. Do you think that LIC can serve best objectives of the customers?


46%

38%

16%

% of Consumer Response that LIC can best serve customer objectives

5

4

3


38 % consumers give the 4 rating,


No one give the 2 and 1 rating.

It means that most of the consumers are agree that the LIC can best meet

customer’s objectives.

Q14.Do you think that few extra features must be added in LIC related to safety and security?


60%

24%

12% 4%

% of Consumer Response that new features must be added in LIC Services

5431





It means that 4% consumers are strongly disagree that new features must be add

LIC to improve its services.

Q15. Which Life Insurance Policy you prefer? Why?

95%

5%

% of Consumer Preference for choosing best Insurance Service

LIC Insurance PoliciesOther Companies Policies

GAP MEASUREMENT

QUESTION NUMBER RESPONSE FOR OVER

ALL RATING IN %

5 4 3 2 1

GAP 1. ASSURANCE GAP

Q1. 90 8 2 0 0

Q2 82 18 0 0 0

ASSURANCE GAP 86 13 1 0 0(Add Questions 1-2 and Divide by 2)

GAP 2. RELIABILITY GAP

Q3. 38 44 18 0 0

RELIABILITY GAP 38 44 18 0 0(QUESTION 3 RESPONSE Divide by 1)

GAP 3. RESPONSIVENESS GAP

Q4. 48 34 18 0 0

Q5. 32 24 30 12 2

Q6. 14 38 40 6 2

RESPONSIVENESS GAP 31.33 32 29.33 6 1.33(Add Questions 4-6 and Divide by 3)

GAP 4.EMPATHY GAP

Q.7 18 58 16 8 0

Q8. 26 34 30 8 2

Q9. 46 32 22 0 0

Q10. 28 46 22 4 0

Q.11 20 42 28 8 2

Q.12 32 48 18 0 2

EMPATHY GAP 28 43 23 5 1.0

(Add Questions 7-12 and Divide by 6)

GAP 5. TANGIBLES

Q13. 46 38 16 0 0

Q14. 60 24 12 0 4

TABGIBLES GAP 53 31 14 0 2(Add Questions 12-13 and Divide by 2)

OVER ALL GAP MEASURMENT SUMMARY

GAP1: ASSURANCE GAP 86 13 1 0 0

GAP2. RELIABILITY GAP 38 44 18 0 0

GAP3. RESPONSIVENESS GAP 31.33 32 29.33 6 1.33

GAP4. EMPATHY GAP 28 43 23 5 1.00

GAP5. TABGIBLES GAP 53 31 14 0 2

LIMITATIONS

LIMITATIONS

Some limitations arise because in this research customer preferences are and the

gap is calculated in mathematical term. Yet it is not really not possible to

calculated customer expectation in mathematical term.

It depends customer willingness to give good and fair response then we can say

concretely the result is good.

Results of this study and findings are applicable only for Bareilly city and near by

areas. The results may be different of this study in another place.

One of the limitation of this study is that of time limitation due to which it is not

possible to do the detailed study.

The sample size was taken only 50; it is difficult to say anything concretely.

Absence of professional researcher and team was another limitation of the study.

SUGGESTIONS

SUGGESTIONS

According to the consumer response and findings of the study it is found that LIC is

working well to meet customer expectations. But some areas needed to important. So few

suggestions can be give to enhance customer satisfaction.

LIC have to emphasize on consumer trust. Because trust is everything for

consumer. More trust more consumers.

LIC services must be easily accessible consumer so that less effort by done

consumer to get LIC services.

Toll free no facility makes good customer satisfaction so that they can get any

information easily.

LIC agent has to hear the consumer complaint and try to resolve it quickly so that

enhances customer satisfaction.

LIC agents have to provide every information to consumers so that consumer

feels comfort that he is investing at right services.

LIC agents have to prefer consumer schedule to that consumer may comfort to

meet agent.

Recovery of fund after maturity must be easy.

Consumer problems and queries must be solved quickly.

LIC agents and employees have to cooperate the consumers.

Few new features regarding the safety and security may improve more customer

satisfaction.

CONCLUSION

CONCLUSION

LIC is already a leading company of Insurance in India. The consumer responses in the

project report also indicate that LIC is a capable insurance company justifying with its

consumers in real manner. It is found in the study most of the consumers are satisfy with

the LIC services. LIC is providing adequate service which really consumer wants. But

there are some areas where LIC need to improve so that it may meet the customer

objectives easily. We know very well every customer have their own view regarding

thing, LIC services is one of them. In conclusion it is cleared that there is a low gap

between customer expectation and the LIC offered facilities. But it does not mean that

LIC is perfect, at many areas gap is found and LIC need to improve in that areas. There is

also a limitation of the study because 50 responder is not enough to decide anything. It

depends fully responder honesty also their response.

QUESTIONNAIRE

QUESTIONNAIRE

TITLE OF THE RESEARCH PROJECT

“TO ASSES THE PERCUED CUSTOMER SATISFATION TOWARDS THE

SERVICE QUALITY PROVIDED BY THE LIC BY USING THE TOOL OF GAP

ANALYSIS” FOR BAREILLY CITY

NAME OF THE RESPONDER----------------------------------------

ADDRESS----------------------------------------------------------------

AGE-----------------------------------------------------------------------

CONTACT ADDRESS-------------------------------------------------

Directions:

Listed below are a number of statements intended to measure your perceptions about

your bank and its operations. Please indicate the extent to which you disagree or agree

with each statement by circling one of The 5 numbers next to each statement where 1

strongly disagree, 3 is neutral, and 5 is strongly agree. There are no rights or wrong

answers. Please tell us honestly how you feel.

Remember 1 is strongly DISAGREE and 5 is strongly

AGREE.

Q1. Do you think that LIC is a Trustful Insurance Company?

Q2.It is safe to invest money in LIC (security point of view)?

Q3. Do you think that LIC provides you a complete coverage?

Q4.How much easy for you to assess the LIC Services?

Q4.It is easy for you to assess the LIC Services without lot of effort?

Q5. It is good that LIC provides Toll Free No. to resolve any query and to get any

information?

Q6. When you have any complaint. Is the LIC service agent listen to you?

Q7. LIC Service agent provides you complete information, before taking any LIC policy?

Q8. Whether, company agent willing to meet you according to your time schedule?

Q9. Are you satisfied with the services of LIC?

Q10.Whether recovery of fund after maturity is easy?

Q11.When there is any problem; does the service provider resolve it quickly?

Q12.Whether LIC employees and agents generally cooperate with the customers?

Q13. Do you think that LIC can serve best objectives of the customers?

Q14.Do you think that few extra features must be added in LIC related to safety and

security?

Q15. Which Life Insurance Policy you prefer? Why?

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SIGNATURE OF RESPONDER

DATE:-

BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS

Kotler Philip; Marketing Management”;

Pearson Education, New Delhi;

12th Edition

Shiffman, Kanuk; “Consumer Behavior”;

Prentice-Hall, New Delhi

8th Edition

Kothari, C.R.

“Research Methodology”

WEBSITE: - licindia.com

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