International Journal of Engineering Technology, Management and Applied Sciences
www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
321 Ms. PoojaPuri, Dr. Harinder Singh Gill
A Comparative Study of LIC and Private Insurance
Companies
Ms. Pooja Puri Dr. Harinder Singh Gill
Associate Professor/ Research Scholar Professor
Deptt. Of Management Studies Deptt. Of Management Studies Amritsar College of Engg. & Tech,ASR Amritsar College of Engg. & Tech, ASR
\
Abstract:. This study is mainly related to life insurance
business in Indiaand privatization of life insurance
sector. LIC was monopoly in insurance sector till 2000.
The competition has increased after the privatization of
insurance. With the entrance of private player, the
scenario of the insurance business changed. My study
helps to make comparison between the LIC with the new
private life insurance companies on basis of quality of
services, consumer satisfaction, awareness, consumer
preference and their working as a whole.It shows the
customer view point with respect to their company.
(Keywords: Awareness level, Customer satisfaction and
preference, Service quality, Grievances.)
Introduction
Until 1999, the business of life insurance in India
was the monopoly of life insurance corporation of
india (LIC). In 1956 nationalization of insurance
business was a major milestone in the development
of insurance business in India by taking 245 private
insurers business.
The Indian insurance market was thrown open to
private players in the year 1999 and the Insurance
Regulatory and Development Authority (IRDA)
was established to regulate the insurance market.
After it‟s opening, the insurance sector has the entry
of a number of private players who captured a
significant market shares in the life insurance
market. The public sector companies have to
leverage upon their strengths to give a tough flight
to the private sector players. Privatization witnessed
dynamic changes in the insurance industry and most
of the private companies are joint ventures with
recognized foreign players across the globe.
Customers are the main pillar of life insurance
business. Every company tries to attract and retain
existing customers to keep their profits high. When
compared life insurance industry in India with
foreign, it achieved only a little because of low
consumer awareness, poor affordability, delayed
customer services, lack of suitable products.
At present, in addition to LIC in public sector, 15
private companies are operating in life business.
Companies like HDFC Standard Life Insurance,
TATA AIG Life Insurance, Allianz Bajaj Life
Insurance, Max New York Life, OM Kotak, Birla
Sun Life Insurance, SBI Life, Aviva Life Insurance,
ING Vysya, MAT Life Insurance, Reliance Life,
ICICI Prudencial, SAHARA Life, SriRam Life,
BharatiAxa Life & AMP Sanmar are doing good
business in Indian Soil.
Review Of Literature
Dr. Harish et al. (2014) studied the product
offerings of largest public sector life insurance
Company of India Life Insurance Corporation of
India and the private giant ICICI prudential life
insurance company Ltd on the aspects of
applicability of SERVQUAL dimensions to current
product offering and to study and compare the
perception of customers in terms of service quality.
The study also attempts to compare perceived
quality of product offerings of the selected life
insurance companies on SERVQUAL dimensions.
MS. BABITA YADAV et al. (2014) Studied
different factors which influence customers policy
buying decision and also analyze the preferences of
customers while life policy investment decision-
making. LIC is the most accepted and popular brand
in life insurance, the market share of private
insurers are gradually increasing with people trust
and better services offered by them are some of the
main findings of the study.
International Journal of Engineering Technology, Management and Applied Sciences
www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
322 Ms. PoojaPuri, Dr. Harinder Singh Gill
BidyadharPadhi (2013) The paper focused on the
role and performance of private insurance
companies for the period from 2001 to 2012. The
study will reflect the performance of selected
private insurance companies in the areas like
number of policies floated, amount of premium
collected and the annual growth in the respective
areas from 2001 to 2012. LIC of India enjoyed
monopoly in Indian Insurance market for more than
four decades. In 2000 the Insurance sector has
liberalized and Insurance Development Regulatory
Authority has set up. The private players are
allowed to operate in collaboration with the foreign
insurance companies.
BINOD KUMAR SINGH (2010) studied the
behavior of individual or a group of people. The
study of consumer behavior provides marketers to
understand and predict the future market behavior.
In this paper, role of IRDA, role of Indian banks,
role of private insurance companies, function of
insurance company, various factors influencing
consumer behavior, factors influencing buying
decision and model of consumer decisions making
process have been considered. Also, the types of
insurance policy taken by consumer, the total sum
assured of life insurance, the total sum assured of
life insurance for the spouse, the share of public
insurance in insurance sector, share of LIC in life
insurance in insurance sector and the reasons for
invested in life insurance have been studied.
Masood H. Siddiqui at el. (2010) used confirmatory
factor analyses, proposes a six dimensional service-
quality instrument consisting of „assurance‟,
„personalized financial planning‟, „competence‟,
„corporate image‟, „tangibles‟ and „technology‟ in
life insurance. A causal model, using structural
equation modeling, is suggested to investigate the
effects of the proposed service quality instrument
on customer satisfaction („satisfaction with agents‟,
„satisfaction with functional services‟, „satisfaction
with company‟ and finally with „overall
satisfaction‟).
Ajay Suneja at el. (2010) Stated that with
increasing competition, customers have become
very important for insurance companies in India.
The study also compares these factors across
different demographic groups of customers of life
insurance companies. The study has brought out
various factors influencing choice 'of a life
insurance company. These factors are-promotional
activities, image of company, customer
convenience, financial and non-financial facilities,
and premium and procedural formalities.
Objectives of The Study
Check the awareness level of customer‟s
towards insurance Co.
To know about factors which influence the
choice of insurance company?
To explore the various factors influencing
customer investment decision.
To Study the Consumer Preferences Towards
insurance company.
To compare the customers of LIC and private
life insurance in terms of service quality.
To check the level of Customer Satisfaction.
Study the Grievance status in LIC and Private
insurance companies.
Research Methodology
1) Sampling Unit: It‟s a comparative study, so for
my study I choose LIC as a public company and
other private companies.
2) Source of Data: Primary & Secondary
3) Sampling Technique: Non-probability
sampling technique was used in this researched.
4) Target Place: Amritsar
5) Sampling Size: Total 100 respondents are taken
as a sample for survey.
6) Statistical Tools and Techniques: Percentage
method, Factor analysis, Chi-Square and
Weighted average.
Limitation
As the main objective of the present research
was to study the public and private life
insurance sector in the Indian context, technical
aspect of electronic CRM technologies was not
covered properly.
The scope of the study in this particular field.
The sample size of present study was relatively
small to generalize the results in the Indian
context.
International Journal of Engineering Technology, Management and Applied Sciences
www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
323 Ms. PoojaPuri, Dr. Harinder Singh Gill
Response No. of
Respondents
% of
Respondents
LIC 50 50
HDFC 17 17
ICICI 14 14
BAJAJ Allianz 11 11
Aviva India 8 8
Total
100
100
Demographic Profile:
Respondents
Male 79
Female 21
Age
20-25 23
25-30 47
30-35 17
35Above 13
Education
Upto HSC 7
Graduate 63
Post Graduate 3
Professional 27
Occupation
Salaried 34
Business 19
Housewife 8
Students 3
Professional 27
Retired 9
Income
Less Than 2Lac 35
2-3Lac 41
3 Above 24
Data Analysis & Interpretation:
Awareness level of customer‟s towards
insurance companies
Figure:1Have you heard about Private Life
Insurance or LIC
All respondents are aware about the company
whether private or public
Figure:2 Know about the various plans offered by
Insurance Companies
LIC respondents are more aware about the plans
offered by their company as compared to the private
respondents. 90% of the respondents are aware
about the plans offered by LIC. It is 12% more than
the private life insurance company.
Figure:3Media used by your insurance company
100%
0%
Yes No
78%22%
Private
Yes No
90%
10% LIC
Yes NO
123
35
012
35
3 0
2613
2 912 4
28
6
To a great
extend
Somewhat Very little Not at All
Private
Newspaper Social Media
Television Hoardings
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www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
324 Ms. PoojaPuri, Dr. Harinder Singh Gill
As per the survey, Social media is used mostly by
the private life insurance companies to target the
customer. LIC respondent‟s point of view, television
media is used mostly by the company for targeting
the customer.
Factors influencing customer investment
decision.
Figure:4 Consult before making an investment.
Private respondents consult other persons like
relatives, friends and a person having the private
life insurance policy. But LIC respondents take their
own decision at the time of making investment.
Consumer Preferences Towards insurance
company.
Figure:5 Insurance policies are for?
Child
Freq % Valid
Percent
Cumulativ
e Percent
Valid
Yes 94 94.0 94.0 94.0
No 6 6.0 6.0 100.0
Total 100 100 100.0
Adult
Freq % Valid
Percent
Cumulativ
e Percent
Valid
Yes 95 95.0 95.0 95.0
No 5 5.0 5.0 100.0
Total 100 100 100.0
Old_People
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid
Yes 98 98.0 98.0 98.0
No 2 2.0 2.0 100.0
Total 100 100.0 100.0
Working_People
Frequen
cy
Percen
t
Valid
Percent
Cumulativ
e Percent
Valid
Yes 98 98.0 98.0 98.0
No 2 2.0 2.0 100.0
Total 100 100.0 100.0
Most of the respondents perceive that all the
categories of insurance policies are made for us.
Figure:6 Private company scheme or LIC did you
invest?
1928
3 0
2915
4 2
36
9 5 0015 9
26
To a great
extend
Somewhat VERY
LITTLE
NOT AT
ALL
LIC
Newspaper Social Media
Television Hoardings
Banker
10%Consult
ant
18%
[CATEG
ORY
NAME]
[PERCE
NTA…
Nobody
28%
Any
Other
30%
Private
Banker
2%
Consulta
nt
14%
Chartere
d
Account
ant
6%
Nobody
46%
Any
Other
32%
LIC
International Journal of Engineering Technology, Management and Applied Sciences
www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
325 Ms. PoojaPuri, Dr. Harinder Singh Gill
We see that private respondents give preference
firstly to the Endowment Plan of the company and
then after it they like to choose Money back plan of
the company. But LIC respondents give their
preference firstly to the Other plans of the company.
Level of Customer Satisfaction.
Figure:7Satisfied with the policy.
LIC respondents are more satisfied with policy
which they have taken.
Figure:8 Feel after investing in Insurance Plans.
There is no one who feels worse after investing in
LIC. The experiences of the private respondents are
not good.
Grievance status in LIC and Private
insurance companies.
Figure: 9 Problem faced.
32%42%
8% 018%
Private
18%10% 12% 8%
52%
LIC
Yes No
90
10
96
4
Private LIC
28%
36%8%
16%12%
Private
Much Better Somewhat Better
Stayed the Same Somewhat Worse
Worse
52%40%
8%
LIC
Much Better Somewhat Better
Stayed the Same
16%
84%
Private
Yes No
International Journal of Engineering Technology, Management and Applied Sciences
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326 Ms. PoojaPuri, Dr. Harinder Singh Gill
84% of the respondents have no problem with the
insurance company. From LIC respondents view
point, the percentage is 94%.
Figure:10Satisfied with the grievance handling
procedure of the Company.
Figure:11 Rate Private Life Insurance by LIC
9% of the respondents rate Excellent to private life
insurance company as compared to the LIC and that
all are private respondents.
Chi-Square Test
H01 (Private)There is no significant relationship
b/w income and investment.
H02 (LIC) There is no significant relationship b/w
income and investment.
Private Respondents
Investment * Income Crosstabulation
Income Total
Less
than
2lac
2-
3lac
Above
3lac
Invest
ment
Upto
1lac
Count 16 13 0 29
Expect
ed
Count
9.9 11.6 7.5 29.0
1lac-
2lac
Count 1 6 5 12
Expect
ed
Count
4.1 4.8 3.1 12.0
2lac-
3lac
Count 0 1 4 5
Expect
ed
Count
1.7 2.0 1.3 5.0
Above
3lac
Count 0 0 4 4
Expect
ed
Count
1.4 1.6 1.0 4.0
Total Count 17 20 13 50
6%
94%
LIC
Yes No
22%
38%26%
10% 4%
Private
Very Satisfied Satisfied
Neutral Dissatisfied
Very Dissatisfied
58%26%
14% 2%
LIC
Very Satisfied Satisfied
Neutral Dissatisfied
9%
25%
25%
35%
6%
Excellent Above Average
Average Below Average
Poor
International Journal of Engineering Technology, Management and Applied Sciences
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327 Ms. PoojaPuri, Dr. Harinder Singh Gill
Expect
ed
Count
17.0 20.0 13.0 50.0
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson
Chi-Square 34.483a 6 .00
Likelihood
Ratio 41.417 6 .00
Linear-by-
Linear
Association 26.263 1 .00
N of Valid
Cases 50
a. 9 cells (75.0%) have expected count less than 5.
The minimum expected count is 1.04.
CHI-SQUARE value we get is 34.483%.
From the above Chi-square test table, we see that
asymptotic significance value is .00, which show
that the differences are real not due to the chance. It
shows a significant relationship between the income
and investment. It rejected the null hypothesis.
LIC Respondents
Investment * Income Crosstabulation
Income Total
Less
than 2lac
2-3lac Above
3lac
Invest
ment
Upto
1lac
Count 10 12 5 27
Expec
ted
Count
9.7 11.3 5.9 27.0
1lac-
2lac
Count 8 4 1 13
Expec
ted
Count
4.7 5.5 2.9 13.0
2lac- Count 0 5 1 6
3lac Expec
ted
Count
2.2 2.5 1.3 6.0
Above
3lac
Count 0 0 4 4
Expec
ted
Count
1.4 1.7 .9 4.0
Total
Count 18 21 11 50
Expec
ted
Count
18.0 21.0 11.0 50.0
Respondents having the income less than 2lac
invest up to the amount of 2lac in the insurance
company (10- up to 1lac; 8- 1to2lac).
Respondents having the income 2-3lac invest up to
3lac (12- up to 1lac; 4- 1to2lac; 5- 2to3lac).
Respondents having the income above 3lac invest
up to 3lac or above (5- up to 1lac; 1- 1to2lac; 1-
2to3lac; 1- above 3lac).
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-
Square 23.011
a 6 .001
Likelihood
Ratio 22.600 6 .001
Linear-by-
Linear
Association
5.687 1 .017
N of Valid
Cases 50
a. 8 cells (66.7%) have expected count less than 5.
The minimum expected count is .88.
CHI-SQUARE value we get is 23.011%.
From the above Chi-square test table, we see that
asymptotic significance value is .01, which show
that the differences are real not due to the chance. It
shows a significant relationship between the income
and investment. It rejected the null hypothesis.
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328 Ms. PoojaPuri, Dr. Harinder Singh Gill
Weighted Average Method
RANKING VARIOUS FACTORS
RESPONSIBLE FOR INVESTMENT IN LIFE
INSURANCE PRODUCTS
Ranking
Factors
No. Of Respondents Total
1 2 3 4 5 100
Tax
Benefit
72 18 6 3 1 100
Risk
coverage
& saving
7 46 27 11 9 100
Security
With High
Service
13 4 29 8 46 100
Insurance
Service
1 3 4 30 62 100
Premium
Charges
2 7 12 13 66 100
Now, for analyzing the various factors responsible
for investing in insurance policies, ranking is done
on basis of weighted score TABLE NO.2. scoring is
done as per the scale 1-5weights.
1rank – 5; 2rank – 4; 3rank – 3; 4rank – 2; 5rank – 5
Ranking Of Various Factors
Factors Weighted
Score
Mean Rank
Tax Benefit 457 4.57 1
Risk
coverage &
saving
331 3.31 2
Security
With High
Service
230 2.30 3
Insurance
Service
151 1.51 5
Premium
Charges
166 1.66 4
It is revealed from the table no. 1and table no. 2,
majority of the respondents invest in life insurance
for tax benefit, followed by the risk coverage &
saving, security with high return, premium charges
and insurance services can be ranked as 1st, 2
nd, 3
rd,
4th and 5
th respectively.
Factor Analysis
Factors influenced while choosing insurance
company.
Reliability Analysis-
As depicted in Table, the Kaiser-Meyer-Olkin
(KMO) measure of sampling adequacy for this
sample was 0.561, which is greater than 0.5,
suggests that the data is adequate for factor analysis.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy. .561
Bartlett's Test of
Sphericity
Approx. Chi-
Square 201.433
df 55
Sig. .000
Reliability Statistics
Cronbach's Alpha N of Items
.524 11
Rotated Component Matrixa
Component
1 2 3 4 5
Advertiseme
nt
0.85
2
Persuasion
by agents 0.85
Wide
Variety Of
Insurance
`Products
0.84
6
Managemen
t 0.843
Easy
Settlement 0.758
Customer
care
&Redressal 0.738
E-Payment 0.659
Accessibilit
y of offices 0.642
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329 Ms. PoojaPuri, Dr. Harinder Singh Gill
Premium &
Procedural
formalities 0.85
Easy mode
of
depositing
premium 0.721
Financial &
Non-
Financial
Facilities 0.937
Extraction Method: Principal Component Analysis.
Factor Loading Statement Factor
Loading
C1 Advertisement .852
C1 Persuasion by agents .850
C1 Wide Variety Of Insurance Products .846
C2 Top Management .843
C2 Easy Settlement .758
C3 Customer care &Redressal .738
C3 E-payment .659
C3 Accessibility of offices .642
C4 Premium & Procedural formalities .850
C4 Easy Mode
For
Depositing
Premium
.721
C5 Financial & Non-Financial Facilities .937
COMPONENT1 Promotional Activities
This factors exhibits that the promotional activities
affected mostly in choosing the company by the
consumer.
COMPONENT2 Company Image
Highest loading variable is Top management that is
.843. It means that working of top management in
the company directly affected the choice of a
consumer.
COMPONENT3 Customer Convenience
Highest loading variable is Customer care
&redressal that is .738. It means that customer care
&redressal by the company become an important
variable while choosing the company.
COMPONENT4 Formalities
This factors exhibits that the company formalities
also affect the company choice.
COMPONENT5 Facilities
.This factors exhibits that the company facilities
also affect the company choice, whether it is
financial or non-financial.
Quality Of Service
Private Response
Reliability Analysis-
Kaiser-Meyer-Olkin (KMO) measure of sampling
adequacy for this sample was 0.764, which is
greater than 0.5, suggests that the data is adequate
for factor analysis. The significance value of 0.000
tells us that there is a correlation between variables.
Hence, we reject the null hypothesis and conclude
that the variables are correlated with each other.
This indicates that the factor model, as a model for
data analysis, can be accepted. The reliability
estimate (Chronbach's Alpha) is 0.838 which
indicates acceptable reliability of data.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy. .764
Bartlett's Test of
Sphericity
Approx. Chi-
Square 156.488
df 21
Sig. .000
Reliability Statistics
Cronbach's Alpha N of Items
.838 7
Rotated Component Matrixa
Component
1 2
When you have problems,
it shows a sincere interest
in solving it.
.850
Promise to do something
certain time, it does so .798
Provides its services at the
time it promise to do so .766
Employees in company
give you prompt services .634
You feel safe in your
transactions .793
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330 Ms. PoojaPuri, Dr. Harinder Singh Gill
Operating hours
convenient to all its
customers
.760
Company gets things right
the first time .674
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 3 iterations.
Initial Eigen Values
Total % Of
Variance
Cumulative%
1 3.681 52.591 52.591
2 1.069 15.273 67.864
Table indicates that 67.864 per cent of cumulative
variance has been explained by two (2) factors. The
variance reflects considerable contribution of these
factors while choosing a particular company for
obtaining life insurance company in terms of their
service quality. s
Factor Loading
Statement Factor Loading
C1 When you have a
problems, it show
ainterest in solving it.
.850
C1 Promise to do
something certain
time, it does so
.798
C1 Employees in
company give you
prompt services
.634
C2 You feel safe in your
transactions
.793
C2 Company gets things
right the first time
.674
COMPONENT1 Commitment
These factors exhibits that the Commitment attracts
the customer in respect of quality of services.
COMPONENT2 Security
These factors exhibits that the Security attracts the
customer in respect of quality of services.
Quality Of Service
LIC Response
Reliability Analysis-
Sampling adequacy for this sample was 0.755. The
significance value is 0.000. The reliability estimate
(Chronbach's Alpha) is 0.834 which indicates
acceptable reliability of data.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy. .755
Bartlett's Test of
Sphericity
Approx. Chi-
Square
159.04
8
Df 21
Sig. .000
Reliability Statistics
Cronbach's Alpha N of Items
.834 7
Rotated Component Matrixa
Component
1 2
Employees in company
give you prompt services .891
Operating hours
convenient to all its
customers
.796
Provides its services at the
time it promise to do so .793
Promise to do something
certain time, it does so .560
You feel safe in your
transactions .910
Company gets things right
the first time .818
When you have problems,
it shows a sincere interest
in solving it.
.699
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
International Journal of Engineering Technology, Management and Applied Sciences
www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
331 Ms. PoojaPuri, Dr. Harinder Singh Gill
a. Rotation converged in 3 iterations.
Initial Eigen Values
Total % Of
Variance
Cumulative
%
1 3.592 51.320 51.320
2 1.290 18.434 69.753
Table indicates that 69.753 per cent of cumulative
variance has been explained by two (2) factors. The
variance reflects considerable contribution of these
factors while choosing a particular company for
obtaining life insurance company in terms of their
service quality. To interpret the factors, the first
factor has an Eigen value of 3.592. Since this is
greater than 1.0, it explains more variance than a
single variable. The percentage of variance
explained by this factor is 51.320 per cent. The
second factor has an Eigen value of 1.290 and
explains 18.434 per cent of the variance in the
original data.
Factor Loading
Statement Factor
Loading
C1 Employees in company give
you prompt services
.891
C1 Operating hours convenient
to all its customers
.796
C1 Promise its services at the
time it promise to do so
.793
C2 You feel safe in your
transactions
.910
C2 Company gets things right
the first time
.818
COMPONENT1 Time
These factors exhibits that the Time attracts the
customer in respect of quality of services.
COMPONENT2 Security
These factors exhibits that the Security attracts the
customer in respect of quality of services
Overall Satisfaction Factors
Private Response
Sampling adequacy for this sample was 0.536. The
reliability estimate (Chronbach's Alpha) is 0.517
which indicates acceptable reliability of data.
Rotated Component Matrixa
Component
1 2 3
Assurance .803
Tangibles .785
Empathy .846
Technology .710
Personalized_Financial_Pl
anning .818
Corporate_Image .785
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 6 iterations.
Initial Eigen Values
Total % Of
Variance
Cumulativ
e%
1 1.831 30.521 30.521
2 1.407 23.455 53.976
3 1.095 18,251 72.227
Table indicates that 72.227 per cent of cumulative
variance has been explained by three (3) factors.
Factor Loading
Statement Factor Loading
C1 Assurance .803
C1 Tangibles .785
C2 Empathy .846
C2 Technology .710
C3 Personalized Financial
Planning
.818
C3 Corporate image .785
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www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
332 Ms. PoojaPuri, Dr. Harinder Singh Gill
LIC Response
Sampling adequacy for this sample was 0.546,
which is greater than 0.5, suggests that the data is
adequate for factor analysis.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy. .546
Bartlett's Test of
Sphericity
Approx. Chi-
Square 31.888
Df 15
Sig. .007
Reliability Statistics
Cronbach's Alpha N of Items
.524 6
Rotated Component Matrixa
Component
1 2 3
Corporate_Image .914
Tangibles .810
Assurance .744
Personalized_Financi
al_Planning .642
Empathy .546
Technology .908
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 4 iterations.
Initial Eigen Values
Total % Of
Variance
Cumulative%
1 1.906 31.773 31.773
2 1.126 18.769 50.541
3 1.052 17.535 68.077
Table indicates that 68.077 per cent of cumulative
variance has been explained by three (3) factors.
The variance reflects the satisfaction on the basis of
various factors. To interpret the factors, the first
factor has an Eigen value of 1.906. Since this is
greater than 1.0, it explains more variance than a
single variable.
Statement Factor Loading
C1 Corporate images .914
C1 Tangibles .810
C2 Assurance .744
C2 Personalized financial
planning
.642
C2 Empathy .546
C3 Technology .908
Conclusion
All respondent are aware about the presence
of company and regarding media used by their
company. LIC respondents are more aware about
the plans offered by their company.
From the survey we see that the customer,
whether it is of LIC or Private company is duly
influenced by the promotional activity, company
image, customer convenience, formalities and
facilities.
Respondents consult other persons like
relatives, friends and a person having the private
life insurance policy. LIC respondents take their
own decision at the time of making investment due
to their faith in the company. Majority of the
respondents invest in life insurance for tax benefit,
followed by the risk coverage & saving, security
with high return, premium charges and insurance
services, whether it is Private or LIC respondents.
Private respondents give their preference
firstly to Endowment Plan of the company and LIC
respondents give their preference to the other plans
of the company. Respondents whether Private or
LIC is clear regarding insurance policies, they
prefer plan according to their need. With the change
in time need also changed.
Quality of service is an important aspect,
Both Private and LIC respondents want security
from their company. Private respondents rate
overall satisfaction in providing services on the
International Journal of Engineering Technology, Management and Applied Sciences
www.ijetmas.comMay 2017, Volume 5, Issue 5, ISSN 2349-4476
333 Ms. PoojaPuri, Dr. Harinder Singh Gill
basis of- Assurance, Empathy, Personalized
financial planning. LIC respondents rate overall
satisfaction in providing services on the basis of-
Corporate image, Assurance And Technology.
LIC respondents are more satisfied with
policy which they have taken as compared to
private. The experience of the LIC respondents is
good as compared to the private respondents. There
is no one who feels worse after investing in LIC.
The experiences of the private respondents are not
good. But it does not mean, they feel same for all
private companies. That was its personal experience
for a particular type of insurance company. Rate
given by respondents to private life insurance
company is more to below average.
Private respondents faced more problem as
compared to LIC. Grievance handling is good as
compared to private in LIC and respondents
satisfied with their procedure.
Recommendation
People give a high priority to security of
their investment, therefore the promotion schemes
should concentrate on educating the customers that
Private sector players have a strong financial
backing like that of LIC.
It is seen that till today a large portion of
population is unaware of various insurance plans,
these include educated professionals also.
Therefore, the Private sector insurance companies
should focus on improving awareness and increase
the understanding about insurance plans thus
increasing their scope of sale.
Private Life Insurance Companies should
lay more stress on advertises, both in print as well
as in other media.
To introduce innovative products offering a
right mix of flexibility/risk/return depending, which
will suite the requirement of the customers.
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