lic costomer perciption

7/31/2019 LIC COSTOMER PERCIPTION

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INTRODUCTION

Consumer Perception:

Consumer perception theory is any attempt to understand how a consumers perception ofa product or service influences their behavior. Those who study consumer perception try to

understand why consumers make the decisions they do, and how to influence these decisions.

Usually, consumer perception theory is used by marketers when designing a campaign for a

product or brand. However, some people study consumer perception in order to understand

psychology in a much more general sense.

Perception:

In general psychological terms, perception is our ability to make some kind of sense of

reality from the external sensory stimuli to which we are exposed. Several factors can influence

our perception, causing it to change in certain ways. For example, repeated exposure to one kind

of stimuli can either make us oversensitive or desensitized to it. Additionally, the amount of

attention we focus on something can cause a change in our perception of it.

What Is PERCEPTION?

Perception is a process by which individuals organize and interpret their sensory

impressions in order to give meaning to their environment. However, what one perceives can

be substantially different from objective reality. It need not be, but there is often

disagreement. For example, its possible that all employees in a firm may view it as a great

place to work- favorable working conditions, interesting job assignments, good pay, an

understanding and responsible managementbut , as most of us know, its very unusual to

find such agreement.

Factors That Influence Perception:

A number of factors operate to shape & sometimes distort perception. These factors

can reside in the perceiver, in the object or target being perceived, or in the context of the

situation on which the perception is made.


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a) Factors in the perceiver:

Attitudes Motives Interests Experience Expectations

b) Factors in the situation:

Time Work setting Social setting

c) Factors in the target

Novelty Motion Sounds Size Background Proximity Similarity

CUSTOMER BEHAVIOUR :

Behavior is a mirror in which everyone shows his or her image. Behavior is a process of

responding to stimuli. Consumer behavior is to do with the activities of individuals in obtaining

and using the goods and services. It encompasses the decision making process that precedes and

determines purchases. In the words Prof. C.G. Walter and Prof. G.W. Paul it is The process

whereby individuals decide whether, what, when, where, how and from whom to purchase goods

and services.


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Consumer or Customer behavior is all the psychological, social and physical behavior of

potential customers as they become aware of evaluate, purchase, consume and tell others the

products or services.

Factors Influencing Consumer Behaviour:

Social and Cultural InfluencesCulture is learned behavior that has been passed down over time, reinforced in our daily

lives through the family unit and through education and religious institutions. Culture influences,

therefore, are powerful ones and if the company does not understands the culture in which the

particular market operates it cannot hope to develop products and market them successfully.

It is important to recognize that culture although immensely powerful is not fixed forever.Change in culture tends to be slow and not fully assimilated until a generation or more has

passed.

Specific social influences Social class

This is the most prominent social influence. Traditionally, one of the chief determinants

of social class was income. Since pay structures have altered a great deal in terms of the lower

C2, D, and E categories moving more towards levels previously enjoyed by higher A, B and C1

categories over the past 30 years or so, classification of consumers on the basis of lifestyle is

becoming more meaning today.

Reference groupsThis can be described as group of people whose standards of conducts of mould an

individuals dispositions, beliefs and values. This group can be small or large. Reference groups

can range from the immediate family to the place of work. They can also be found in a pe rsons

social life. An individual is unlikely to deviate too far from the behavioral norms led down by the

members of a club or hobby group. Reference group, but it does state that individualism cannot

exist within a group, but it does suggest that even rigid independent thinkers will at least be

aware of what is considered normal within a group.


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MotivationMarketers are interested in motivation when it relates to purchasing behaviour. This

behaviour relates to the motive for wishing to posses the goods or services in question, and it has

been termed goal-related behaviour. It can, therefore, be seen that a number of motives might

be at play when making a purchaser decisionsome motives stronger than othersand the final

decision might be a compromise solution.

CUSTOMER SATISFACTION:

The liberalization and globalization of Indian economy has taken place almost a decade

ago, the focus point in any organization is Customer satisfaction. The phase such as Customer

is king in our business, service to customer is service to god are no more a myth but turned

out to be a reality. Customer satisfaction is the base of any business expansion because of the

stiff competition prevalent in the market.

Whether the buyer is satisfied after the purchase depends on the offers performance in

relation to the buyers expectation. In general; satisfaction is a persons feeling of pleasure or

disappointment resulting from comparing a products perceived performance ( or outcome) in

relation to his or her expectation.

As this definition makes clear, satisfaction is a function of perceived performance and

expectation. If the performance falls short of expectations, the customer is dissatisfied. If the

performance matches the expectations the customer is satisfied.

Perception

Unlike motivation that requires a reaction to a stimulus, perception relates to the meaning

that is assigned to that stimulus as marketers are interested in how buyers perceive and react to

products in relation to such matters as quality, aesthetics, price and image, since products not

only exist in partial terms but also how they are perceived by consumers in relation need

satisfaction. This perception by buyers is affected by the nature of the product itself, by the

circumstances of the individual buyer and by the buyers innate situation in terms of how ready

they are to make the purchase in terms of needing it at a particular point of time.


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Attitude:

Our strongest basic attitudes are implanted in our formative years and these come largely

from the influence of our close family group and other social interaction. More refined attitude

develops later. In marketing terms, the sum total of our attitudes can be regarded as a set of

cognitions that a potential buyer has in relation to a potential purchase or purchasing

environment. This is why certain stores or companies go out of their way to engender favorable

attitude and it is why manufacturer seek to induce loyalty towards their particular brand or

product.

Learning

In the context of marketing, learning is a result of information received through

advertising or other publicity or through some reference group or other. In order to have an effect

on motives or attitudes, marketing effort should associate the product with positive drives and

reinforcing messages.

LIFE INSURANCE IN INDIA:

Life insurance in India made its debut well over 100 years ago.In our country, which is

one of the most populated in the world, the prominence of insurance is not as widely understood,

as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life

insurance, with special reference to LIC it should, however, be clearly understood that the

following content is by no means an exhaustive description of the terms and conditions of an LIC

policy or its benefits or privileges. For more details, please contact our branch or divisional

office. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs

and render policy servicing.What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his

nominee) on the happening of the event insured against. The contract is valid for payment of the

insured amount during:

The date of maturity, or Specified dates at periodic intervals, or


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Unfortunate death, if it occurs earlier.Among other things, the contract also provides for the payment of premium periodically to

the Corporation by the policyholder. Life insurance is universally acknowledged to be an

institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely

aid of the family in the unfortunate event of death of the breadwinner. By and large, life

insurance is civilizations partial solution to the problems caused by death. Life insurance, in

short, is concerned with two hazards that stand across the life-path of every person:

1. That of dying prematurely is leaving a dependent family to fend for itself.2. That of living till old age without visible means of support.

Customer satisfied with LIC service because the LIC totally concentrate

customer relations and it makes customers attract towards the LIC

OBJECTIVES OF THE STUDY:

The main objective of this study is to carry on brief study on Customer satisfaction

survey on insurance products of LIC

Other objectives of this project are as follows:

To identify the insurance needs of the Indian pepole with respect to their emotional,physical and financial conditions.

To study the varied reasons of availing life insurance plans To clearly understand the rationale behind the investment in policies of LIC. To test the awareness of customers on various aspects of life insurance policies offered

by LIC and other private sector insurance companies and find whether there is any

relation between them.

The prime objective of the study is to find out the level of satisfaction of a customer(policy holders or beneficiary)

find out the procedure of claim policy holder or the beneficiary


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Scope of the Study:

To know and understand the different pensions plans as policy as two leading insurance

company in insurance sector by study and analysis that how and in what manner they attract the

customers of different age and salary groups.

METHODOLOGY:

For the preparation of this report the collection of relevant data is very essential. he data

collected for this study is a (1) Primary data (2) Secondary data.

PRIMARY DATA :

Selected 50 people from various people by interview them with the particular

questionnaire the primary data was collected

By the directly knowing the information

Primary data has been gathered by interviewing the manager and other officials of L.I.C

of India

SECONDARY DATA:

Secondary data are the other important sources through which the data is collected. These

are the readily available sour5ces of data where one had needed not put much effort. To

collected because it is already been collected and part in an elderly manner by some researchers,

experts and specialties.

The sources of data is

BOOKS

NEWSPAPERS

INTERNET

BUSINESS MAGAZINES


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LIMITATION OF STUDY:

As the study has been restricted to certain area of the Karimnagar city, therefore theresults cannot be generalized.

Sometimes error caused by variations between the information sort by researcher andthe information given by the respondents.

There will be unwilling by the customer when the information regarding age,occupation, and income, & education, then wrong information is given.

The respondents could have given wrong responses due to the presence of theresearcher, as their behavior is conditional.

The limit for the project is only 2 months.


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COMPANY PROFILE

About the organization:

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

Life Insurance Company stated 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 changed 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 tito 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 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. But the act

discriminated between foreign and Indian companies on many accounts, putting the Indian

companies at a disadvantage. 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


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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 19 th 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 ofLIC 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 crores of New Business in 1957 the corporation crossed 1000.00 crores 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. LICs 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-lint premium collection facility in selected cities. LICs ECS


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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, Ahmedabad, 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 are: 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.


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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.

LIFE INSURANCE CORPORATION OF INDIA (LIC):

The Life insurance Corporation was established about 44 years ago with a view to

provide an insurance cover against various risks in life. A monolith then, the corporation,

enjoyed a monopoly status and become synonymous with life insurance. Its main asset is its staff

strength of 1.24 lakhs employed and 2,048 branches and over six-lakhs agency force. LIC has

hundred divisional offices and has established extensive training facility at all levels. At the

apex, is the Management Development Institute, seven zonal Training Centre and 35 sales

Training Centers. At the industry level, along with the Government and the GIC, it has helped

establish the National Insurance Academy. It presently transacts individual Life Insurance

business, group Insurance business, social security schemes and Pensions, grants housing loans

through its subsidiary. And the markets savings and Investment products through its mutual

fund. It pays off about Rs 6,000 crores annually to5.6 million policyholders


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LIC OPERATES ALL OVER INDIA


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COMPANY PROFILE

Type: Public limited company or Government-owned corporation Founded: September 1,1956

Headquarters: Headquarters in Mumbai, India (Various other locations in India andabroad)

Products: Insurance and Pension Plans Employees: Over 10, 00,000 Parent: NIL Subsidiaries: LIC Housing Finance Limited, etc. Website: http://www.licindia.com

BOARD OF DIRECTORS:

Members On The Board Of The Corporation

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

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

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

Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)

Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of Finance, Govt. of

India.)


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

Shri D.L. Rawal (Chairman & Managing Director , Dena Bank)

Dr. Sooranad Rajashekhran

Shri. Monis R. Kidwai

Lt. General Arvind Mahajan ( Retd.)

MISSION/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 andPride of India.

LIC of India is the one and only public sector life insurance Company in India.Milestones:

Some of the important milestones in the life insurance business in India are: 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 companystarted its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulatethe life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses.


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1938: Earlier legislation consolidated and amended to by the Insurance Act with theobjective of protecting the interests of the insuring public.

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

The General insurance business in India, on the other hand, can trace its roots to theTriton Insurance Company Ltd., the first general insurance company established in the

year 1850 in Calcutta by the British.

ORGANISATION STRUCTURE OF LIC:

Chairman

Managing Director

Executives Directors

Chiefs

Zonal Managers

Regional Managers

Divisional Managers

100 Seniors Divisional Managers


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Marketing Managers

Sales Managers

Senior Branch Managers (Head of the Branch)

Assistant Branch Managers Sells

Development Officers

Different Agent

PUBLIC RELATION DEPARTMENT:

The Public Relation Department in LIC is divided into three major categories. Namely:

1. Communication Department

2. Crisis Management Department

3. Publicity Department

Chief Public Relation Officer

PRO (Communication Dept.)

PRO (Crisis Management Dept.)

PRO (Publicity Dept.)


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DEPARTMENTS:

CHAIRMAN OF LIC

PUBLIC RELATIONS

COMMUNICATION DEPARMENT

PUBLICITY DEPARMENT

CRISIS MANAGEMENT DEPATMENT

CHIEF PUBLIC RELATION OFFICER:

The Chief Public Relation Officer of LIC is Mr. M. V. Kulkarni. He heads the PR

department. The above three committees are under the PRO. The PRO is responsible for theoverall functioning of the PR department. He has to monitor the smooth functioning of the three

departments.

Responsibilities Of Chief Public Relation Officer:-

1. PR represents whole organization.2. Should know how to behave in a certain situation.3. He is not a person, he is representative.4. Should know how to create enthusiasm.5. In crisis he has to give feedback as soon as possible.


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Objectives And Functions Of Chief Public Relation Officer:-

1. The PRO is directly answerable to the Chairman Shri. T.S. Vijayan.2. The PRO looks after all the activities of the three departments all over India.3. Also he has to keep in close touch with the over-seas PR departments of LIC.4. All the policies implemented in India are informed to other PROs of the over-seas

branches of LIC.

5. The PRO monitors the norms and values of all the branches.6. The new rules and regulations in India are informed to the PROs of the over-seas

branches.

7. The PRO also holds regular workshops for the top management employees to motivatethem to lift the spirit of the work culture.

8. The PRO also has to provide information about latest policies to the communicationdepartment and ask them to public or air it through various mediums.

9. Since a major share of workload of LIC is in the public sector, the PRO has to look aftersocial responsibility as well as maintaining the image of the company.

Communication Department

The PRO of this Department is an external PR.

He looks after:-

1. Arranging press conferences, press releases and is in constant contact with the media.2. He is also responsible for monitoring the overseas communications.3. The Communication Department PRO has to make arrangements for the guests and their

overall honors. The conversations with the guests are directly done by the

Communication Department PRO.

4. The PRO from this department should always keep a close eye on the latest happeningsin the market. Any social issue at any area is news to be worked out for him.

5. He reports directly to the Chief PRO of the company.


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6. The Press conference usually includes the CEO of the company, the Chief PRO and theCommunication Dept. PRO.

7. If the case is of crisis, then only is the Crisis management Dept PRO present for the Pressconference.

8. Since LIC is closely related with the Public Sector, the Communication Dept. PRO has toalso be in a close contact with the government officials.

9. He also has to motivate the employees in his department for constant progress in thestrategies for communication.

10.In short, the communication Department PRO ensures that there is no communicationgap between the company and the external concerned bodies.

11.(Recent press releases of LIC issued by Communication Department PRO enclosed).CRISIS MANAGEMENT DEPARTMENT:

The PRO in this department is an internal one. From the overall history of LIC, it is seenthat the company has never been into any major crisis. This itself is one of the best

achievements.

He is answerable to the Chief Public Relation Officer. The PRO from crisis management, though is here to handle crisis, he has been assigned

many other internal responsibilities.

1. Motivating the lower employees, sales executives and sales and marketing employees.2. Building up a smooth communication between the Blue Collar and the White Collar.3. Arranging small workshops for all the employees.4. He also has to know the issues going within the other departments so that these issues are

solved before they create crisis.

The strategy used by the PR here for crisis management is:-

Wash the utensil before having food in it.

Thus all the employees right from the day of joining are kept in close contact with the

Crisis Management Dept. And regular workshops help to restrict cases like Corruption. With a


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company so closely associated with the government, restricting such practices is very difficult

task.

Publicity Department:

The PRO of the publicity Department is an External PR. This department was formed due to the fall of sales in the 1999. This fall was due to the

emergence of the foreign insurance companies and their advertising strategies. Initially,

the ads shown by LIC always said no worry even after death. All the ads portrayed

death. The other insurance companies came up with the idea that insurance is for happy

life. Thus the sales of LIC went down as people liked the idea of Life more than Death.

Hence a separate publicity department was formed which worked only for publicitystrategies. Initially it was looked up by the Communication Department.

Today the publicity department PRO has to see to it that all the ads running are creatingeffect. The PRO is the one who along with the Marketing department looks after the

strategies for publicity. He is also to carry out various campaigns.

The very recent campaign is known as Zindagi Express. The Zindagi Express is a term that has been associated to the life of LIC. Just as humans celebrate their 50 years of life, even LIC is celebrating its life. And when

any person has done a lot in his life, he is capable of writing an Autobiography. Thus

Zindagi Express is an Autobiography by LIC.

They had started this unique campaign of auto biography from Delhi and will cover theentire nation and end up in Delhi again. During this journey they explain what all LIC has

done for publics and what all it still intends to do

To satisfy the consumers in LIC they make effective public relations and consumer

relations


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S.W.O.T. ANALYSIS OF LIC:

A proper S.W.O.T. analysis of LIC has also been conducted to know better about the

position, growth, and upcoming future and prospective of the company.

STRENGTHS:

LIC is on 1st rank among the Insurance player. Long-term plans of LIC are the main strength. After sales services. Products cost are very low. Customer does not believe on private company.

WEEKNESS

Low interest rateOPPORTUNITIES

Good brand promotion. 1/2nd- % insurance has been covered.

THREATS

Competitors. Entry of Private Insurance banks.


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AWADRS:

Awards Received in 2011-12

Readers Digest Superbrands

Asian Leadership Awards ET Brand Equity's Most Trusted

CNBC AWAAZ Dainik Bhaskar Group


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Awards Received in 2010-11

CNBC Awaz Consumer AwardET Brand Equity Award for Top

Brand in Insurance Category

Outlook Money Award for Best Life

InsurerAIMA High Performance Award

Readers Digest Trusted BrandGolden Peacock Award for Corporate

Governance


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THEORETICAL ASPECTS OF THE STUDY

Definition of service quality:

"Service quality is a focused evaluation that reflects the customer's perception of specific

dimensions of service: reliability, responsiveness, assurance, Empathy, tangibles. Satisfaction, on

other hand, is more inclusive: it is influenced by perceptions of service quality, product quality,

and price as well as situational factors and personal factors.

The five service dimensions are:

TANGIBLES:

Appearance of physical facilities, equipment, personnel, and communication materials

ABILITY:

Ability to perform the promised service dependably and accurately

RESPONSIVENESS:

Willingness to help customers and provide prompt service

ASSURANCE:

Knowledge and courtesy of employees and their ability to convey trust and confidence

EMPATHY:

Caring, individualized attention the firm provides its customers

Strong customer service is a business essential. Providing it isnt as difficult if you and your

employees achieve these 10 basic rules:


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1. Commit to quality service:In LIC of India Everyone devoted to creating a positive experience for the customer.

Always try to go above and beyond customer expectations.

2. Knowledge about products:Convey an articulate and in-depth knowledge of products and services to win customer

trust and confidence. They know their companys products, services, and return policies

inside and out. Also try to anticipate the types of questions that customers will ask. Anyone

can easily Update and amend their FAQ page frequently.

3. Know your customers.They can try to learn everything about the customers in order to tailor their service

approach to customers needs and buying habits. Talk to customers about their experience

with the company, and listen their complaints. In this way, they can get to the root of

customer dissatisfaction.

4. Treat people with courtesy and respect:Employee or the agents of the LIC of India always treat or react with respect to their

customers. Whether its by email, phone, written correspondence, or a face-to-face meeting.

This interaction leaves an impression with that customer. Use conciliatory phrases "Sorry

to keep you waiting," "Thanks for your order," "Youre welcome," and "Its been a pleasure

helping you" etc.

5. Never argue with a customer:They know very well that the customer isnt always right. However, they do not focus on

the missteps of a particular situation; instead, concentrate on how to fix it. Research shows

that 7 out of 10 customers will do business with a company again if that business resolves a

complaint in their favor.s


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6. Dont leave customers in limbo:LIC agents or employee Repairs, callbacks, and emails handled with a sense of urgency.

They know Customers want immediate resolution, and if they can give it to them, they will

probably win their repeat business. Research shows that the instance of repeat business goes

up to 95 percent when complaints are resolved on the spot.

7. Always provide what you promise:They know very well that if they fail to do this than they will lose both credibility and

customers. If they guarantee a quote within 24 hours, they quote out in a day or less. when

they neglect to make good on their promise, apologize to the customer and offer some type of

compensation, such as a discount or free delivery.

8. Assume that customers tell the truth:Even though it may appear that customers lie to manipulate a situation to their advantage,

they hope that it is their advantage to give them the benefit of the doubt. The majority of

customers dont like to complain; in fact, they will go out of their way perhaps all the way

to a competitor to avoid it. If they hear unhappy rumblings from their customers, take

their complaints to heart and do their best to appease their dissatisfaction.

9. Focus on making customers not on sales.:Salespeople, especially those who get paid on commission, sometimes focus on the

volume instead of on the quality of the sale. But an agent or employee of LIC give more

important to customers business is more than to close a sale. Research shows that it costs six

times more to attract a new customer than it does to keep an existing one. Moreover, happy

customers are the best and most effective way to find new customers.


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Make it easy to buy:

The buying experience in their store, on Web site, or through catalog should be as easy as

possible. People cant find unnecessary paperwork and forms. They help people to find what

they need, explain how products work.

What is customer loyalty?

The term customer loyalty is used to describe the behavior of repeat customers, as well as

those that offer good ratings, reviews, or testimonials. Some customers do a particular company

a great service by offering favorable word of mouth publicity regarding a product, telling friends

and family, thus adding them to the number of loyal customers. However customer loyalty

includes much more. It is a process, a program, or a group of programs geared toward keeping a

client happy so he or she will provide more business.

Customer loyalty can be achieved in some cases by offering a quality product with a firm

guarantee. Customer loyalty is also achieved through free offers, coupons, low interest rate on

financing, high value trade-ins, extended warranties, rebates, and other rewards and incentive

programs. The ultimate goal of customer loyalty programs is happy customers who will return to

purchase again and persuade others to use that company's products or services. This equates to

profitability, as well as happy stakeholders

The key to a successful business is a steady customer base. After all, successful

businesses typically see 80 percent of their business come from 20 percent of their customers.

Too many businesses neglect this loyal customer base in pursuit of new customers. However,

since the cost to attract new customers is significantly more than to maintain your relationship

with existing ones, your efforts toward building customer loyalty will certainly payoff.


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Here are ten ways to build customer loyalty:

1. Communicate.

Employees or the agent of the LIC of the India sent an email newsletter, monthly

flier, a reminder card for a tune up, or a holiday greeting card, reach out to their teddy

customers.

2. Customer Service.LIC of India go the extra distance and meet their customer needs. They also Train the

staff to do the same. Customers remember being treated well.

3. Employee Loyalty.Loyalty works from the top down. they are loyal to their employees, they will feel

positively about their jobs and pass that loyalty along to your customers.

4. Employee Training.They train their employees in the manner that they want them to interact with

customers. Empower employees to make decisions that benefit the customer.

5. Customer Incentives.They Give customers a reason to return to their business. For instance, they give bonus

to their customers or offer free gift coupons etc;

6. Product Awareness.They Know what steady customers purchase and keep these products to sell them . and

they also add other products and/or services that accompany or compliment the products that

your regular customers buy regularly. And they are sure about that their staff understands

everything about their products.


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7. Reliability.They always reliable to their customers. If something goes wrong, they immediately

inform to their customers and compensate them for their inconvenience.

8. Be Flexible.They are always ready to solve customer problems or complaints to the best of their

ability. And provide accurate result in a short time period.

9. People over Technology.The harder it is for a customer to speak to a human being when he or she has a problem,

the less likely it is that you will see that customer again.

10. Know Their Names.They know the names of regular customers or at least recognize their faces.

Relationship Between Service quality and Customer Loyalty:

In various studies the relationship between service quality and customer preference

loyalty had been examined (Boulding, Kalra, Staelin, & Zeithaml, 1993; Cronin & Taylor,

1992). In their study Cronin and Taylor (1992) focused solely on repurchase intentions, whereas

Boulding et al. (1993) focused on the elements of repurchasing as well as the willingness to

recommend. In the study by Cronin and Taylor service quality did not appear to have a

significant (positive) effect on repurchase intentions (in contrast to the significant positive impact

of satisfaction on repurchase intention), whereas Boulding et al. (1993) found positive

relationships between service quality and repurchase intentions and willingness to recommend.


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Products of LIC

LIC - Jeevan Anurag:

Benefits:

LICs Jeevan ANURAG is a - with profits plan specifically designed to take care of the

educational needs of children. The plan can be taken by a parent on his or her own life. Benefits

under the plan are payable at pre specified durations irrespective of whether the Life Assured

survives to the end of the policy term or dies during the term of the policy. In addition, this plan

also provides for an immediate payment of Basic Sum Assured amount on death of the Life

Assured during the term of the policy.

Assured Benefits:

Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy

years before maturity. At maturity, 40% of the Basic Sum Assured along with reversionary

bonuses declared from time to time on full Sum Assured for the full term and the Terminal

bonus, if any shall be payable. For example, if term of the policy is 20 years, 20% of the Sum

assured will be payable at the end of the 17th, 18th, 19th year and 40% of the Sum Assured

along with the reversionary bonuses and the terminal bonus, if any, at the end of the 20th year.

Death Benefit:

Payment of an amount equal to Sum Assured under the basic plan immediately on the

death of the life assured.

LIC - Jeewan Kisore:

Product summary:

This is an Endowment Assurance Plan available for children of less than 12 years of

age. The policy may be purchased by any of the parent/ grandparent.


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Commencement of risk cover:

The risk commences either after 2 years from the date of commencement of policy or

from the policy anniversary immediately following the completion of 7 years of age of child,

whichever is later.

Premiums:

Premiums are payable yearly, half-yearly, quarterly or monthly throughout the term of

the policy or till earlier death of child.

Bonuses:

This is a with profits plan and participates in the profits of the Corporations life

insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary

Bonuses are declared per thousand Sum Assured annually at the end of each financial

year. Once declared, they form part of the guaranteed benefits of the plan. A Final

(Additional) Bonus may also be payable provided policy has run for certain minimum period .

LICChilds Career Plan:

Introduction:

This plan is specially designed to meet the increasing educational and other needs of growing

children. It provides the risk cover on the life of child not only during the policy term but also during

the extended term (i.e. 7 years after the expiry of policy term). A number of Survival benefits are

payable on surviving by the life assured to the end of the specified durations.

Options:

You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium

payment and Premium Waiver Benefit.


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Payment of Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary

deductions over the term of policy. Premiums may be paid either for 6 years or up to 5 years

before the policy term.

LIC - Child Future Plan:

Introduction:

This plan is specially designed to meet the increasing educational, marriage and other

needs of growing children. It provides the risk cover on the life of child not only during the

policy term but also during the extended term (i.e. 7 years after the expiry of policy term). Anumber of Survival benefits are payable on surviving by the life assured to the end of the

specified durations.

Options:

You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium

payment and Premium Waiver Benefit.

Payment of Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or through

Salary deductions over the term of policy. Premiums may be paid either for 6 years or up to 5

years before the policy term.

LICNew Jeevan Shree:

Product summary:

This is an Endowment Assurance plan offering the choice of many convenient

premium-paying terms. It provides financial protection against death throughout the term of

plan with the payment of maturity amount on survival to the end of the policy term.


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Premiums:

Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary

deductions, as opted by you, throughout the premium paying term or till earlier death.

Alternatively premium may be paid in one lump sum.

Guaranteed Additions:

The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand

Sum Assured for each completed year for first five years of the policy.

LIC - The Whole Life Policy:This plan is mainly devised to create an estate for the heirs of the policyholder as the

plan basically provides for payment of sum assured plus bonuses on the death of the

policyholder. However, considering the increased longevity of the Indian population, the

Corporation has amended the above provision, thereby providing for payment of sum assured

plus bonuses in the form of maturity claim on completion of age 80 years or on expiry of term

of 40 years from date of commencement of the policy whichever is later.

The premiums under the policy are payable up to age 80 years of the policyholder or

for a term of 35 years whichever is later. If the payment of premium ceases after 3 years, a

paid-up policy for such reduced sum assured will be automatically secured provided the

reduced sum assured exclusive of any attached bonus is not less than Rs.250/-. Such reduced

paid-up policy is not entitled to participate in the bonus declared thereafter but the bonuses

already declared on the policy will remain attach, provided the policy is converted in to a paid-

up policy after the premiums are paid for 5 years.

LICAmulya Jeevan:

On Death during the Term of the Policy : Sum Assured

On Maturity : Nil


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RESTRICTIVE CONDITIONS:

Minimum age at entry 18 years (completed)

Maximum age at entry 60 years (nearest birthday)

Maximum age at maturity 70 years (nearest birthday)

Minimum Policy Term 5 years

Maximum Policy term 35 years

Minimum Sum Assured Rs.25,00,000/-

Maximum Sum Assured No Upper Limit

(Policies will be issued in multiples of Rs.100,000/- for Sums Assured more than the minimum

Sum Assured)

Mode of premium payment: Yearly, Half-yearly & Single Premium


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Customer Satisfaction in 7 Steps in LIC

It's a well known fact that no business can exist without customers. In the business

of Website design, it's important to work closely with your customers to make sure the site

or system you create for them is as close to their requirements as you can manage. Because

it's critical that you form a close working relationship with your client, customer service is

of vital importance. What follows are a selection of tips that will make your clients feel

valued, wanted and loved.

1. Encourage Face-to-Face Dealings


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This is the most daunting and downright scary part of interacting with a customer. If

you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured,

though, it does get easier over time. It's important to meet your customers face to face at least

once or even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work with someone

they've actually met in person, rather than a voice on the phone or someone typing into an email

or messenger program. When you do meet them, be calm, confident and above all, take time to

ask them what they need. I believe that if a potential client spends over half the meeting doing

the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a

response to an email or phone call. It might not always be practical to deal with all customers'

queries within the space of a few hours, but at least email or call them back and let them know

you've received their message and you'll contact them about it as soon as possible. Even if you're

not able to solve a problem right away, let the customer know you're working on it.

A good example of this is my Web host. They've had some trouble with server hardware

which has caused a fair bit of downtime lately. At every step along the way I was emailed and

told exactly what was going on, why things were going wrong, and how long it would be before

they were working again. They also apologised repeatedly, which was nice. Now if they server

had just gone down with no explanation I think I'd have been pretty annoyed and may have

moved my business elsewhere. But because they took time to keep me informed, it didn't seem

so bad, and I at least knew they were doing something about the problems. That to me is a prime

example of customer service.

3. Be Friendly and Approachable


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A fellow Site Pointer once told me that you can hear a smile through the phone. This is

very true. It's very important to be friendly, courteous and to make your clients feel like you're

their friend and you're there to help them out. There will be times when you want to beat your

clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you

keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite

and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined

customer service policy is going to save you a lot of time and effort in the long run. If a customer

has a problem, what should they do? If the first option doesn't work, then what? Should they

contact different people for billing and technical enquiries? If they're not satisfied with any

aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person to person, or

not knowing who to turn to. Making sure they know exactly what to do at each stage of their

enquiry should be of utmost importance. So make sure your customer service policy is present on

your site and anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a

client of? Have you ever had a personalised sign-up confirmation email for a service that you

could tell was typed from scratch? These little niceties can be time consuming and aren't always

cost effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers, it's

something. It shows you care; it shows there are real people on the other end of that screen or

telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out


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Sometimes this is easier said than done! However, achieving this supreme level of

understanding with your clients will do wonders for your working relationship.

Take this as an example: you're working on the front-end for your client's exciting new

ecommerce endeavour. You have all the images, originals and files backed up on your desktop

computer and the site is going really well. During a meeting with your client he/she happens to

mention a hard-copy brochure their internal marketing people are developing. As if by magic, a

couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution

versions of all the images you've used on the site. A note accompanies it which reads:

Your client is heartily impressed, and remarks to his colleagues and friends how very

helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your

chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer

will send several referrals your way.

7. Honour Your Promises

It's possible this is the most important point in this article. The simple message: when you

promise something, deliver. The most common example here is project delivery dates.

Clients don't like to be disappointed. Sometimes, something may not get done, or youmight miss a deadline through no fault of your own. Projects can be late, technology can fail and

sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be

ready ASAP wouldn't go amiss.


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DATA ANALYSIS AND FINDINGS

1) Among Stall company is who is providing good services

LIC HDFC ICICI OTHRS

50% 20% 20% 10%

(LIC IS HAVE MORE CUSTOMERS RATHER THAN OTHERS)

LIC

HDFC

ICICI

OTHERS


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2) WHO IS PRIVIDING GOOD VERITY OF POLICIESLIC HDFC ICICI OTHRS

50% 20% 20% 10%

LIC IS ONE OF FIRST INSURANCE COMPANY WHICH PROVIDE MORE

SERVICES

LIC

HDFC

ICICI

OTHERS


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Q 3) Do you have Product of LIC?

Particular Number PercentageYes 90 90%

No 10 10%

Interpretation:-

From the above chart we can say that 90% customer have product of LIC and 10%customer have product of other companies, from that we can say that the trust of the people

towards LIC is too much high as compared to other players in insurance sector.


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LIC Company will perform the activity of

issuing cheque of sum assured right the

first time.

1 2 3 4 5

LIC Company will provide the services at

the time it promises to do so.

1 2 3 4 5

LIC company will insist on error-free

record.

1 2 3 4 5

Average Reliability

-5

0

5

10

15

20

25

30

Time

punctuality

Problem

solution

issue of

cheque

fulfillment

of promise

error free

record

AVERAGE - perception

AVERAGE - Expectation

DIFFERENCE


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AVERAGE

perception

AVERAGE

Expectation

DIFFERENCE

Time punctuality 25.6 25.93 -0.33

Problem solution 25.53 26.4 -0.87

issue of cheque 23.07 26.27 -3.2

fulfillment of promise 26 25.13 0.87

error free record 26.93 27.07 -1.04

Interpretation:-

From the above chart we can say that as there is not much difference between perception

perceived by the company and the expectation fulfillment of customers. we can say thatcompany is successful in providing customers value services as per the expectations of

customers. Only in case of issue of cheque company is unable to provide satisfactory services to

extent.

Q.5)

Expectation Responsiveness

Employees of excellent life insurance firmswill tell the customers when services will be

performed.

1 2 3 4 5

Employees of excellent life insurance firms

will give prompt services to customers.

1 2 3 4 5


will always be willing to help customer.

1 2 3 4 5


will never be too busy to respond to

customers requests.

1 2 3 4 5

Average Responsiveness


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Responsiveness

Employees of LIC company will tell the

customers when services will be performed.

1 2 3 4 5

Employees of LIC Company will give

prompt services to customers.

1 2 3 4 5

Employees of LIC Company will always be

willing to help customers.

1 2 3 4 5

Employees of LIC company will never be

too busy to respond to customers requests.

1 2 3 4 5


-5

0

5

10

15

20

25

30

EMPLOYEES

INFORMED TO

CUSTOMERS

EMPLOYEES

GIVE PROMPT

SERVICES

EMPLOYES

WILLING TO

HELP

CUSTOMER

EMPLOYEES

NEVER TO

BUSY TO

RESPOND

AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE


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AVERAGE

EXPECTATION

AVERAGE

PERCEPTION

DIFFERENCE

EMPLOYEES INFORMED TO

CUSTOMERS

22.8 23.93 0.5

EMPLOYEES GIVE PROMPT

SERVICES

25.13 22.87 -2.26

EMPLOYES WILLING TO HELP

CUSTOMER

23.6 29.53 5.93

EMPLOYEES NEVER TO BUSY

TO RESPOND

29.4 29.4 0

Interpretation:-

As per above chart we can say that as compared to other factors the back office which is

also known as employee help desk is not organized enough to help the customers and solve their

quarries 24/7 and are not able to provide them a value services.

Q.6)

Expectation Responsiveness


will tell the customers when services will be

performed.

1 2 3 4 5


will give prompt services to customers.

1 2 3 4 5


will always be willing to help customer.

1 2 3 4 5


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will never be too busy to respond to

customers requests.

1 2 3 4 5


Responsiveness

Employees of LIC company will tell the

customers when services will be performed.

1 2 3 4 5

Employees of LIC Company will give

prompt services to customers.

1 2 3 4 5

Employees of LIC Company will always be

willing to help customers.

1 2 3 4 5

Employees of LIC company will never be

too busy to respond to customers requests.

1 2 3 4 5



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AVERAGE

EXPECTATION

AVERAGE

PERCEPTION

DIFFERENCE

EMPLOYEES INFORMED TOCUSTOMERS

22.8 23.93 0.5

EMPLOYEES GIVE PROMPT

SERVICES

25.13 22.87 -2.26

EMPLOYES WILLING TO HELP

CUSTOMER

23.6 29.53 5.93

EMPLOYEES NEVER TO BUSY

TO RESPOND

29.4 29.4 0

Interpretation:-

As per above chart we can say that as compared to other factors the back office which is also

known as employee help desk is not organized enough to help the customers and solve their

quarries 24/7 and are not able to provide them a value services.

-5

0

5

10

15

20

25

30

EMPLOYEES

INFORMED TO

CUSTOMERS

EMPLOYEES

GIVE PROMPT

SERVICES

EMPLOYES

WILLING TO

HELP

CUSTOMER

EMPLOYEES

NEVER TO

BUSY TO

RESPOND

AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE


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Q7)

Expectation Assurance

The behavior of employees in excellent life

insurance firms will instill confidence in

customers.

1 2 3 4 5

Insured customers of excellent life insurance

firms will feel safe with insurance services.

1 2 3 4 5

Employees in excellent life insurance firms

will be consistently courteous to customer.

1 2 3 4 5

Employees in excellent life insurance firms

will have the knowledge to answer the

customers questions.

1 2 3 4 5

Average Assurance

Perception Assurance

The behavior of employees in LIC company

will instill confidence in customers.

1 2 3 4 5

Insured customers of LIC company will feel

safe with insurance services.

1 2 3 4 5

Employees in LIC company will be

consistently courteous to customers.

1 2 3 4 5

Employees in LIC company will have the

knowledge to answer the customers

questions.

1 2 3 4 5

Average Assurance


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AVERAGE

EXPECTATION

AVERAGE

PERCEPTION

DIFFERENCE

BEHAVIOUR OFEMPLOYEES 21.67 20.8 -0.87

SAFE WITH THE

INSURANCE

24.33 22.8 -1.53

COURTEOUS TO

CUSTOMERS

22.4 21.6 -0.8

KNOWLEDGE TO

ANSWER

21.87 20.13 -1.74

Interpretation:-

From the above chart we can say that employees behavior towards customers with relation to

various services is not satisfactory and their response is not solving the quires and giving

knowledge to various customers

-5

0

5

10

15

20

25

BEHAVIOUR OF

EMPLOYEES

SAFE WITH THE

INSURANCE

COURTEOUS

TO

CUSTOMERS

KNOWLEDGE

TO ANSWER

AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE


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Q 8)

Expectation Empathy

Excellent company will give customers

individual attentions.

1 2 3 4 5

Excellent company will have working hour

convenient for all the customers

1 2 3 4 5

Excellent company will have employees who

give customers personal attention.

1 2 3 4 5

Excellent company will have their customers

best interest at heart.

1 2 3 4 5

The employees of excellent companies willunderstand the specific needs of their

customers.

1 2 3 4 5

Average Empathy

Perception Empathy

LIC company will give individual attentions

on customers.

1 2 3 4 5

LIC company will have working hour

convenient for all its customers.

1 2 3 4 5

LIC company will have employees who give

customers personal attention.

1 2 3 4 5

LIC company will have their customers best

interest at heart.

1 2 3 4 5

The employees of LIC company will

understand the specific needs of their

customers.

1 2 3 4 5

Average Empathy


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AVERAGEEXPECTATION

AVERAGEPERCEPTION

DIFFERENCE

INDIVIDUAL ATTENTION 25 23.53 -1.47

CONVENIENT TOCUSTOMERS

24.07 22.6 -1.47

CUSTOMER PERSONEL

ATTENTION

23.13 22.2 -0.93

BEST INTEREST AT

HEART

24.6 23.47 -1.13

UNDERSTAND THE

SPECIFIC NEEDS

22.67 21.4 -1.27

-5

0

5

10

15

20

25

AVERAGE EXPECTATION

AVERAGE PERCEPTION

DIFFERENCE


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Interpretation:-

From the above chart we can say that unlike other services and their personal attention facilities

life insurance companies agents and employees are unable to provide the personal needs and

likes of different customers at up to the mark level.

Q 9) SERVQUAL SCORE

CRITERIA Weight Weighted Average

score

TANGIBILITY 10 10

RELIABILITY 30 -27.3

RESPONSIVENESS 20 20.8ASSURANCE 10 -12.2

EMPATHY 30 -37.5

TOTAL 100 -46.2

Average of Weighted Average score = Weighted Average score

5

= (- 46.2 / 5)

= -9.24

-40

-30

-20

-10

0

10

20

30

Average

TANGIBILITY

RELIABILITY

RESPONSIVENESS

ASSURANCE

EMPATHY


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As per above chart we can say that as services can only be felt and not be touched

tangibility secures the least average as compared to others and even we cannot assure the same

satisfaction every time.

Project Analysis:

The Positive side of LIC as well as Negative side of LIC. I encourage other readers to

correct me if I am wrong and also add light to any point that I may have missed.

First lets talk about the Positive side of LIC

1. LIC is owned by the government and therefore it is the only company besides the PPF

that has the sovereign guarantee of the govt. of India. It is a different story that today LIC has

become so powerful that the govt. leans on LIC every time that the Stock Market crashes.

Imagine having an Asset base of over Rs 6 Lac Crore. . Thats a 14 digit number! No company

in India can boast of such figures. Mind boggling.

2. LIC is the only Life Insurance Company making profits. Most of the Private Insurers

including the self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy

losses. Check IRDA website in the Annual Report column. The point is that if an insurance

company makes losses year over year, then how will they manage to pay the Claim amount?

After all no Insurance company is here to do charity business.

3. When it comes to paying claims, again LIC is Number One with the claims settlement

ratio of more than 99%. Private Insurers cannot match LICs ability on claims settlement. Again,

please visit IrDAs website to see the claims settlement performance of various companies.

4. LIC has the worlds largest sales force, yes over 10 lac agents and now universities in

western countries are trying to study how a company managed to appoint such a large sales

force. A sales force of over 1 million! Truly a remarkable achievement.

5. Many people argue that LIC has not been able to penetrate the market as it has insured

only 15% of the population. My point is, in a poor country like India where there are so many


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people living below the poverty line, so many people who die of starvation, so many people who

dont have access to basic medication, so many people who dont have basic necessities of life

like food, shelter, education and clothing. Will such a person first feed his children or buy

Insurance? Lets not forget that a majority of the Indian population is poor and a substantial

percentage is living below the poverty line. At a personal level I feel that LIC has done a

satisfactory job of insuring people.

FINDINGS

Most of the respondents have LIC policy because they are concern about their future and

their family

In my study I found that most of the respondents have life insurance policy that is 65%

have considered that because they think if something happens to them, their family doesnt have

to take any help for survival through others.

While researching I found that there are many consumers of LIC policy and most of them

have consumed from 4 to 6 years before.

I found that the expectation of the consumer is mostly satisfied by the company because

the company gives best to their customers.

Documentation of any insurance policy takes the most time but here I found 55% of the

respondents agree that it take less time while 10% doesnt agree with it

There is not much difference between perception perceived by the company and the

expectation fulfillment of customers. We can say that company is successful in providing

customers value services as per the expectations of customers.

We can say that company is successful in providing customers value services as per the

expectations of customers. Only in case of issue of cheque company is unable to provide

satisfactory services to extent.

LIC services is concerned with the life of various respondents they need to be made

satisfied for the purchase of services so the concerned professional are able to reach the

expectation level of various customers.


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Because of great technologies used in corporate world the time taken to get any service is

quiet easier as compare to past era.

People are concerned of their near and dear ones and family members they are always

interested to take up a various new policies concerned with their lifes so that they fell insured

and the risk of paying high amount during any mishap is almost reduced.

People are satisfied even for after sale services and they think of buying its various

products and services thats why they would like to recommend its products to their friends and

relatives.


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SUGGESTION & CONCLUSION

SUGGESTION:

Followings are some of the suggestion given by the customer of LIC for serve people in

an improved way.

People suggest that LIC should have increased their bonus rate.

People suggest that LIC should have provided good services after sale of product or policy of it.

SUGGESTIONS FOR IMPROVEMENT

Advertise about the company and its products it motivates individuals to purchaseinsurance

Create a positive perception about insurance. Speak about the good features a plan offers like high returns, life cover, tax benefits,

indexation, accident cover while prospecting customers

Try to sell the product/plan which the consumer requires and not the plan where theadvisors benefit is higher

Improve the efficiency in operations Attract the youth of India with higher returns on investment as returns are the motivating

factor which influence purchase of insurance

Promote insurance in colleges and corporate houses Should have partial withdrawals from the first year onwards Tap the rural market where there is large potential Diversify product portfolio Make products more straight forwardreduce complexities


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Conclusion

From the report I have concluded that most of the respondent has taken the policy of LIC

but they still lacking in providing good service after sales

Investment in LIC is more preferable because it is government oriented and it is follow rules andregulation of IRDA.


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QUESTIONNAIRE

NAME:

Age:

Occupation:

1. Do you have any policy?

a) YESb) NO

2. If yes, which company policy do you own?

a) Licb)

Icici

c) Hdfc standardd) Max newyork

3. What is your annual income?

a) 1-2 lakhsb) 2-3 lakhsc) 3-4 lakhsd) Above 4

4. Are you satisfied with the policy?

a) YESb) NO

5. In your opinion what should the company focus on?

a) Conventional productsb)

Non conventional products

6. Which advertisement affected you in purchasing the policy?

a) Electronic mediab) Print media

7. Are you aware of L I C?


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a) Yesb) No

8. Are you satisfied with the feature of policies?

a) Yesb) No

9. Do you feel force available when ever need their services?

a) Agents

b) Development Officer

10. Are you happy satisfy sales services?

a) Policy Services

b) Revival

11. Do you think that L I C selling needs base products?

a) Yesb) Noc) None of these

12. Are you satisfied with customer to relation staff officers?

a) Yes

b) No

13. Do you feel that customer relationship management should be improved in L I C?

a) Yes

b) No

14. Are you satisfied with claim settlement in L I C?

a) Yes

b) No

c) None of these

15. Why do you prefer L I C Policies?


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a) Risk coverage

b) Returns

c) Safe

d) Above all

16. Are you satisfied with the Returns?

a) Yes

b) No

17. Do you think the private players competing with L I C?

a) Yes

b) No

c) To some extent

d) None of these

18. What respect suggests improving further?

a) Customer relations

b) Product Features

c) Policy services its any branches.


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BIBILOGRAPHY

1. Principles of Marketing by PHILIP KOTLER & GARY ARMSTRONG2.

Marketing Research by DONALD S TULL & DEL I HAWKINS.

3. Dr. P. Periasamy Principles Practice of Insurance, Himalaya Publishing House.4. Website IRDA.5. 52nd Chairmans Review 2008-09 LIC of India.6. Mathew M.J. Insurance (Principles and Practice) RBSA Publishers, Jaipur.7. 53rd Annual Report 2009-10 of LIC of India.8. Yogeakshema Journal May 2008 LIC of India.9.

II. web sites

www.wikipedia.com

www.google.com

www.lic.com

www.icici.com

www.licindia.com

www.bimadeals.com

en.wikipedia.org
http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/http://www.google.com/http://www.lic.com/http://www.lic.com/http://www.icici.com/http://www.icici.com/http://www.licindia.com/http://www.licindia.com/http://www.bimadeals.com/http://www.bimadeals.com/http://www.bimadeals.com/http://www.licindia.com/http://www.icici.com/http://www.lic.com/http://www.google.com/http://www.wikipedia.com/

lic costomer perciption

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