POLICYHOLDERS SATISFACTION TOWARDS SERVICES OFFERED BY LIFE INSURANCE CORPORATION OF INDIA - A STUDY WITH REFERENCE TO NAGAPATINAM DISTRICT

POLICYHOLDERS SATISFACTION TOWARDS SERVICES OFFERED BY LIFE INSURANCE CORPORATION OF INDIA - A STUDY WITH REFERENCE TO NAGAPATINAM DISTRICT K. Sankaranarayanan Ph.D Research Scholar, PG & Research Department of Commerce, A.V.C. College (Autonomous), Mannampandal - 609 305, Mayiladuthurai, Dr. R. Rajanbabu Assistant Professor and Research Advisor, PG & Research Department of Commerce, A.V.C. College (Autonomous), Mannampandal - 609 305, Mayiladuthurai ABSTRACT The majority of the policy holders are satisfied with LIC`s service. The major objectives of this research are to ascertain the socio-economic profile of sample respondents and identify the satisfaction level of policyholders in LIC`s services. This research has also endeavors to develop the customer satisfaction. Primary data has been collected for this present study. The primary data was collected from 560 sample respondents from Nagapattinam District, by proportionate stratified random sampling method. Suggested this study, the analysis it is identified that educational qualification and monthly income are found to be associated with policy holder s satisfaction. LIC should spread its wings in rural areas; it will enable the policy holders rather they approach in urban area. LIC has to create awareness among female policy holders, regarding the benefits of the LIC policies. This article highlights policyholders satisfaction towards services offered by life insurance Corporation of India - a study with reference to Nagapattinam district. KEY WORDS :Policyholders satisfaction, Policyholders Awareness and Satisfaction, Services offered, Life Insurance Corporation of India, Malhotra Committee, Problems faced by the Policyholders, LIC housing Loan Finance INTRODUCTION Insurance is defined as a co-operative device to spread the loss caused by particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. Every risk involves the loss of one or other kind. The function of insurance is to spread the loss over a large number of persons who have agreed to co-operate each other at the time of loss. The risk cannot be averted but loss occurring due to www.apjor.com Page 80

certain risk can be distributed amongst the agreed persons. The insurance, as a social device to accumulate funds and to meet the uncertain losses arising through a certain risk to a person insured the risk. STATEMENT OF THE PROBLEM Insurance sector, as a whole has contributed to the development of economy through generation of employment opportunities, acceleration of industrial growth and so on. Although Life insurance Corporation of India has its own significance and place in the economy, it is not free from problems. Policyholders satisfaction is the true differentiator for the success of any business and is more so in insurance, where the products are perceived to be intangible. The six main aspects namely assess the policyholders, satisfaction level of policyholders, service quality, LIC housing finance, switching behaviour and problem faced by policyholders. In today s challenging business environment, customer service and policyholders satisfaction are emerging as key competitive advantages. Life Insurance is customer based business where retention of existing policyholders is the biggest challenge in present-day cut throat market competition. LIC enjoyed monopoly in life Insurance sector during the pre-nationalized period up to 1999. So public are forced to accept the policies issued by LIC. After liberalization in 2000, many Indian and foreign companies are entered in insurance business. Due to the advent of stiff competition, both public sector and private sector introduce new polices with low cost. So LIC has a variety of plans to cater the needs of various categories of people and their diverse needs. LIC makes effective awareness among public about its product and give better service to its policyholders. Hence, the present study focuses on policyholders satisfaction towards services offered by Life Insurance Corporation of India- a study with reference to Nagapattinam district. Life is full of risk and uncertainties. They believe in future rather than the present and desire to have a better and secured future. In this direction, life insurance service has its own value in terms of minimizing risk and uncertainties. Indian economy is developing and having huge middle class societal status and salaried persons. Their money value for current needs and future desires has the pendulum moves to another side which generate the reasons behind holding a policy. Insurance industry is a service-oriented unit. It renders services like available space, display adequate information, suggestion box and so on to the policyholders. It is essential that insurance schemes should attract and satisfy the policyholders in different ways. Life insurance has today become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money for long periods of time. Ever since its inception in 1956, the life insurance companies in India have been providing better service to the society. The policyholders once when they become a part of the LIC feel free about the safety of their wards. The families of the non-policyholders meet out uncertainty on the death of the bread winner. So, there is an attraction towards life insurance. People who care much about them and their families become policyholders of life insurance. The tastes and preferences of policyholders are indifferent. The LIC of India has been introducing variety of policies suiting the tastes and preferences of the policyholders. It is observed that many policyholders have taken more than one policy. It is a clear indication that they are very much interested in utilizing maximum benefits from LIC. Some people give due importance to money value and high returns on their investments. But greater risks are inherent advantages expected from LIC products. It is in this context this study has been undertaken to the policyholders satisfaction towards services offered by Life Insurance Corporation of India - a study with reference to Nagapattinam district. OBJECTIVES OF THE STUDY The main objectives of the study are as under: 1. To analyse the policyholders awareness and satisfaction towards insurance policies in Life Insurance Corporation of India. 2. To ascertain the policyholders level of satisfaction relating to services offered by Life Insurance Corporation of India in Nagapattinam district. 3. To find out the problems faced by the policyholders towards Life Insurance Corporation of India in Nagapattinam district. www.apjor.com Page 81

HYPOTHESIS OF THE STUDY H 0 : 1 H 0 : 2 There is no significant association between type LIC plans and awareness of the policyholders. H 0 : 2 There is no significant association between reasons for the preference of LIC policy and the policyholders. H 0 : 3 There is no significant difference between demographic profile and policyholders level of satisfaction H 0 : 5 There is no significant difference between demographic profile and problems faced by policyholders. METHODOLOGY The study was based on survey method. This study both primary and secondary data. The primary data was collected from one five hundred and sixty sample respondents by using interview method from Nagapattinam District. Samples were chosen by adopting convenient sampling method. The interview schedule has been prepared in such a way that the respondents are able to express their opinion freely and frankly. A well structured interview schedule was framed with the help of the Research Supervisor, the research experts and the LIC managers in the study area. Interview schedule was the main tool used to collect the pertinent data from the selected sample respondents. Primary Data Primary data refer to data that are collected a fresh for the first time and that is original in nature. The required primary data are collected through interview schedule for policyholders. Secondary Data Secondary data are that data that have been collected by someone else and which have already been passed through the statistical process. Secondary data here have been collected from company records, product profile of the company, article, journal, newspapers, magazines, books and general discussion with company channels. Sampling Design The researcher had adopted Proportionate Stratified Random Sampling Method was used to select the sample policyholders in Life Insurance Corporation of India, Nagapattinam district. To conduct this study with regard to the utilization of the Life Insurance Corporation services by the policyholders particularly the policyholders in early 2015. This sampling involved in drawing sample from each stratum in proportion to the latter s share in the total policyholders. 0.5 per cent of each taluk namely Kevalur, Kuthalam, Mayiladuthurai, Nagapattinam, Sirkali, Tharangambadi, Thirukuvalai and Vetharanyam were selected for the study. The sample size constituted 0.5 per cent of the universe (total 1, 12,000) i.e., 560 sample policyholders were selected. For selecting the respondents the following process was adopted: Out of the total respondents scattered in 8 Taluks of the Nagapattinam District and among nearly 1.12 lakhs policyholders continuously paying the premium at present. Thus, the total sample selected is 560 in the whole district of Nagapattinam. Statistical Tools and Analysis The collected data have been consolidated, tabulated and analyzed by using relevant statistical tools like, Percentage analysis, Descriptive analysis, One Way ANOVA, t-test, Regression analysis, Kruskal-Wallis Test, Multivariate Test, Reliability test for Cronbach s alpha and Factor Analysis. The SPSS 20.0 package was utilized for analyzing the data. SCOPE OF THE STUDY The study covers only policyholders satisfaction towards services offered by Life Insurance Corporation of India- in Nagapattinam district, such as factors influencing policyholder, assess the satisfaction of the policyholders (product attributes, product services, product information, risk coverage and knowledge levels of agents), switching over from LIC to other private companies, services offered by LIC of India, www.apjor.com Page 82

respondent s satisfaction level regarding various factors of LIC housing finance and problems faced by the policyholders. The study pertains to a period from April 2014 to March 2015. Further, the literature available on life insurance industry is also very limited and hence, the scope of the present study is made narrower. AREA OF THE STUDY This study is restricted to the Nagapattinam District which comes under the Thanjavur Division of Tamilnadu, which is considered as one of the top divisions of Southern Zone of LIC of India. The respondents are selected only from Nagapattinam District and only those policyholders who have Life insurance policies of Life Insurance Corporation of India alone were interviewed. PILOT STUDY The interview schedule was given to some research experts for a critical view regard to its content, format and sequence and their feedback was incorporated. Then interview schedule was distributed to 20 respondents for pre-testing and pilot study was also conducted. Pre-testing was done to ensure reliability and validity of the interview schedule. It was done to check whether the instrument was correctly framed in an understandable manner. Taking into consideration the suggestions of the selected sample respondents, necessary modifications and changes were incorporated in the interview schedule after the pilot study. The respondents included in the pilot study were not included as samples for the final study. PERIOD OF THE STUDY The studies cover recent one year from April 2014 to March 2015 for analysis of secondary data relating to various aspects of marketing in Life Insurance Corporation of India. The primary data relating to the opinion of policyholders of LIC of India have been collected during the last year of the study April 2015 to March 2016. LIMITATIONS OF THE STUDY As the study made with Primary and Secondary research, there are certain limitations to the study to be noticed. 1. Sufficient number of respondents from all the LIC service could not be included. 2. The study is confined only to policyholders satisfaction of LIC and other related issues are beyond the purview of present study. 3. The study does not deal with other diversified activities of LIC like mutual funds and other services and also the General Insurance Corporation of India (GICI). 4. The study aims to analyze only individual life insurance policies and not the group insurance policies, health insurance policies, postal life insurances and Employees State Insurance, taken by the women policyholders. 5. Convenient sampling method was used to frame the sample for indefinite population and its limitations are also applicable. 6. It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information. POLICYHOLDERS SATISFACTION TOWARDS LIC OF INDIA AN ANALYSIS Individual policyholders selected from the Life Insurance Corporation of India constituted the sample of customers. The demographic profile of prospective customers is strategically very relevant and significant is designing and marketing of insurance products. More importantly, a clear understanding of demographic characteristics of customer is very essential for diagnosing the difference in the attitude and perception of the policyholders. The studies also focus on customer satisfaction services offered by the Life insurance Corporation. www.apjor.com Page 83

Table 1: Demographic Profile of the Respondents Demographic profile Number of Respondents Percentage Male 427 76.25 Gender Female 133 23.75 Below 20 39 6.96 21 to 30 86 15.36 31 to 40 182 32.50 Age 41 to 50 116 20.71 51 60 73 13.04 60 and above 64 11.43 Unmarried 98 17.50 Married 434 77.50 Marital Status Others (Divorce/Widow / Single) 28 5.00 Rural 341 60.89 Geographic Locality Urban 219 39.11 Illiterate 32 5.71 Upto school level 169 30.18 Education Graduate/ Diploma 217 38.75 Post graduate/ Professional 142 25.36 Government employee 143 25.54 Private employee 161 28.75 Businessmen 94 16.79 Occupation Students 47 8.39 House wife 28 5.00 Farmers 87 15.54 UP to 25,000 363 64.82 25,001 to 50,000 134 23.93 Monthly Income 50,001 to 1,00,000 52 9.29 Above 1,00,000 363 1.96 Small ( 3) 131 23.21 Size of the Family Medium (3-5) 332 59.46 Members Large (above 5 ) 97 17.32 Joint 197 35.18 Nature of Family Nuclear 363 64.82 Source: Primary data www.apjor.com Page 84

Table 1 shows that demographic profile of the policyholders. Gender is the important distinguishing segmentation variable. As far as insurance is concerned, men had greater idea about the insurance products and female also significant role in the taking critical decisions in the purchase of products. Therefore, it is pertinent to study the association between gender of the respondents and their satisfaction towards services of the LIC of India. Analysis of gender segmentation shows that male consists 76.25 per cent of the policyholders and only 23.75 per cent belonging to female category. Age is the important demographic variable for distinguishing segment. The policyholders from different age groups are requested to state their level of satisfaction towards services of the LIC of India and an attempt was made to find out the association between age and satisfaction. Age wise segmentation of policyholders shows that about 32.50 per cent belong to the age group of 31 to 40 which is a common trend in the insurance sector. The age category of 41 to 50 years, 21 to 30 years, 51 to 60 years, 60 and above constitutes 20.71 per cent, 15.36 per cent, 13.04 per cent and 11.43 per cent towards the respondents in the life insurance policyholders. However, policyholders belonging to age category of below 20 constitute only 6.96 percent of the total in the insurance sector. The married category of respondents constitutes 77.50 per cent, unmarried category of respondents constitutes 17.50 per and 5 per cent are other (Divorce/Widow / Single) category of respondents. The geographic location of the respondents constitutes highest of 60.89 per cent of the respondents belong to rural, 39.11 per cent of the respondents belong to urban. The education of the policyholders influences their satisfaction towards services of the LIC of India. Therefore, the respondents from different educational status are requested to state their level of satisfaction towards services of the LIC of India and an attempt was made to find out the association between educational status and satisfaction. Education wise segments show that individuals having graduate/diploma qualification constitutes 38.75 of the policyholders followed by up to school qualification constitutes 30.18 percent and Post graduate/professional qualification constitutes 25.36 per cent. Hardly 5.71 percent of the policyholders belong to illiterate respondents in the life insurance policyholders. The occupation segments, represents that 28.75 per cent of policyholders are employed in the private sector, 25.54 per cent of the policyholders are employed in the government sector, 16.79 per cent of the policyholders are businessmen, 15.54 per cent of the policyholders are farmers, 8.39 per cent of the policyholders are students, and house wife category policyholders constitutes 5 per cent. The income wise analysis of customer segmentation indicates that 64.82 per cent of the policyholders have monthly income of up to Rs.25,000, 23.93 per cent of the policyholders have monthly income of Rs.25,001 to 50,000, 9.29 per cent of the policyholders have monthly income of Rs. Rs.50,001 to 1,00,000 and 1.96 per cent of the policyholders have monthly income of 1.96 towards the respondents. Out of total 59.46 per cent of the respondents are medium family size of 3 to 5 members, 23.21 per cent of the respondents are small family size of less than are equal to 3 members and 17.32 per cent of the respondents are large family size of above 5 members. The nature of family size represents that 64.82 per cent are nuclear family and 35.18 per cent of the respondents are joint family towards the policyholders. MULTIVARIATE TEST Multivariate testing is a technique for testing a hypothesis in which multiple variables are modified. The goal of multivariate testing is to determine which combination of variations performs the best out of all of the possible combinations. Websites and mobile apps are made of combinations of changeable elements. A multivariate test will change multiple elements, like changing a picture and headline at the same time. Three variations of the image and two variations of the headline are combined to create six versions of the content, which are tested concurrently to find the winning variation. www.apjor.com Page 85

H 0 : 1 There is no significant relationship between the motivational factors to taking the life insurance policy and geographic location Table 2: Multivariate Test Effect Value F Hypothesis df Error df Sig. Pillai's Trace 0.940 955.723 b 9 550 0.000* Intercept Wilks' Lambda 0.060 955.723 b 9 550 0.000* Hotelling's Trace 15.639 955.723 b 9 550 0.000* Roy's Largest Root 15.639 955.723 b 9 550 0.000* Pillai's Trace 0.041 2.630 b 9 550 0.006* Geographic Wilks' Lambda 0.959 2.630 b 9 550 0.006* Locality Hotelling's Trace 0.043 2.630 b 9 550 0.006* Roy's Largest Root 0.043 2.630 b 9 550 0.006* Source: Computed from Primary data, * Significant at five per cent level Table 3: Area wise Estimated Marginal Mean Dependent Variable Geographic 95% Confidence Interval Mean Std. Error Location Lower Bound Upper Bound Agent Motivation Rural 4.003 0.072 3.862 4.144 Urban 4.164 0.090 3.988 4.341 Friends/Relatives Rural 3.806 0.072 3.665 3.948 Urban 3.776 0.090 3.599 3.953 Advertising Rural 3.762 0.072 3.621 3.904 Urban 3.817 0.090 3.641 3.994 Family member Rural 3.912 0.063 3.788 4.036 Urban 3.936 0.079 3.781 4.091 Familiarity Rural 3.522 0.077 3.370 3.674 Urban 3.594 0.097 3.404 3.783 Habit of savings Rural 3.742 0.074 3.596 3.888 Urban 3.667 0.093 3.485 3.848 Company Scheme Rural 3.457 0.078 3.304 3.611 Urban 3.639 0.098 3.448 3.831 Image of Company Rural 3.663 0.076 3.513 3.813 Urban 3.553 0.095 3.366 3.739 Type of policy Rural 3.416 0.080 3.259 3.573 Urban 3.589 0.100 3.393 3.785 Source: Computed from Primary data www.apjor.com Page 86

Table 4: Tests of Between-Subjects Effects Source Dependent Variable Type III Sum of Mean df Squares Square F Sig. Agent Motivation 3.476 a 1 3.476 1.973 0.161 Friends/Relatives.122 b 1 0.122 0.068 0.794 Advertising.402 c 1 0.402 0.227 0.634 Family member.077 d 1 0.077 0.057 0.812 Corrected Familiarity.684 e 1 0.684 0.334 0.563 Model Habit of savings.756 f 1 0.756 0.403 0.526 Company Scheme 4.407 g 1 4.407 2.114 0.146 Image of Company 1.621 h 1 1.621 0.817 0.366 Type of policy 3.974 i 1 3.974 1.824 0.177 Agent Motivation 8895.476 1 8895.476 5049.110 0.000 Friends/Relatives 7667.593 1 7667.593 4316.231 0.000 Advertising 7661.745 1 7661.745 4325.194 0.000 Family member 8213.706 1 8213.706 6026.896 0.000 Intercept Familiarity 6752.020 1 6752.020 3299.390 0.000 Habit of savings 7319.527 1 7319.527 3904.841 0.000 Company Scheme 6716.286 1 6716.286 3222.055 0.000 Image of Company 6942.492 1 6942.492 3501.482 0.000 Type of policy 6544.616 1 6544.616 3003.496 0.000 Agent Motivation 3.476 1 3.476 1.973 0.161 Friends/Relatives 0.122 1 0.122 0.068 0.794 Advertising 0.402 1 0.402 0.227 0.634 Family member 0.077 1 0.077 0.057 0.812 Geographic Familiarity 0.684 1 0.684 0.334 0.563 Locality Habit of savings 0.756 1 0.756 0.403 0.526 Company Scheme 4.407 1 4.407 2.114 0.146 Image of Company 1.621 1 1.621 0.817 0.366 Type of policy 3.974 1 3.974 1.824 0.177 Source: Computed from Primary data The estimated marginal mean and MANOVA Tables 4.14, 4.15, and 4.16, indicates that the mean scores of nine variables in motivating factors to taken together vary over the policy in the area location, and that the motivating factors in urban is higher than rural, as the mean values are very low in rural of agent motivation (4.003), friends/relatives (3.806) advertising (3.762), family member (3.912), familiarity (3.522), company scheme (3.457), and type of policy (3.416). The mean value is low in urban in habit of savings (3.667) and image of the company (3.553). The statistical significance of the variation of the mean confirms this. Moreover, the MANOVA characterized by powerful Pillai s Trace test is significant at five per cent level (F 2.634 with p=0.005<005). However, the nine variables for the two geographic location are taken independently, variation not found statistically significant in the test of between-subjects effects (p>0.05). It is concluded that, the area-wise motivation are taken independently, all the motivation to take the policy except savings and image of the company are found higher in rural areas than the urban areas, variation can also be found statistically significant in the test of motivation of to take life insurance products. www.apjor.com Page 87

DEMOGRAPHIC PROFILE AND POLICYHOLDERS SATISFACTION ON SERVICES OFFERED BY THE LIC This section is devoted to testing the significant difference between demographic profile of the respondents with respect to policyholders satisfaction on services offered by the LIC (Product Attributes, Product Services, Product Information, Risk Coverage, Knowledge of Agents, Physical facilities in the LIC, and service representative) in Nagapattinam District. The following null hypothesis has been formulated. H 0 : 2 There is no significant difference between demographic profile and policyholders level of satisfaction H 0 :2(a) There is no significant difference between age and policyholders satisfaction on product attributes One way ANOVA is applied to ascertain if there were any significant difference between age and the satisfaction of services provided by the LIC. Table 5: Age and Satisfaction of Services Statements Age N Mean Std. Deviation Std. Error F Value P Value Below 20 39 31.28 11.82 1.89 21 to 30 86 35.44 10.29 1.11 31 to 40 182 36.85 12.97 0.96 Product 41 to 50 116 37.03 11.21 1.04 Attributes 51 60 73 42.00 14.26 1.67 4.762 0.001* 60 and above 64 38.72 10.75 1.34 Total 560 37.17 12.30 0.52 Below 20 39 15.13 6.16 0.99 21 to 30 86 16.73 5.07 0.55 31 to 40 182 17.53 6.97 0.52 Product Services 41 to 50 116 17.77 6.29 0.58 4.113 0.001* 51 60 73 20.21 8.48 0.99 60 and above 64 18.81 4.86 0.61 Total 560 17.79 6.62 0.28 Product Information Risk Coverage Below 20 39 31.13 11.51 1.84 21 to 30 86 35.44 9.83 1.06 31 to 40 182 36.86 12.74 0.94 41 to 50 116 37.17 10.87 1.01 51 60 73 42.00 14.26 1.67 60 and above 64 38.64 10.60 1.33 Total 560 37.18 12.07 0.51 Below 20 39 15.44 5.89 0.94 21 to 30 86 17.41 5.32 0.57 31 to 40 182 18.31 6.51 0.48 41 to 50 116 17.90 5.78 0.54 51 60 73 21.05 7.06 0.83 60 and above 64 19.09 5.67 0.71 Total 560 18.33 6.25 0.26 5.031 0.001* 5.320 0.001* www.apjor.com Page 88

Below 20 39 12.00 4.80 0.77 21 to 30 86 13.50 3.78 0.41 31 to 40 182 14.19 5.54 0.41 Knowledge 41 to 50 116 14.42 5.18 0.48 Levels of Agents 51 60 73 16.16 6.78 0.79 3.952 0.002* 60 and above 64 14.78 3.83 0.48 Total 560 14.31 5.27 0.22 Physical facilities in the LIC Response of Service Representative Below 20 39 30.28 12.03 1.93 21 to 30 86 33.85 9.90 1.07 31 to 40 182 35.19 14.05 1.04 41 to 50 116 35.68 12.65 1.17 51 60 73 40.41 16.95 1.98 60 and above 64 36.88 11.01 1.38 Total 560 35.69 13.32 0.56 Below 20 39 21.87 8.10 1.30 21 to 30 86 23.59 7.60 0.82 31 to 40 182 25.39 9.02 0.67 41 to 50 116 24.97 8.26 0.77 51 60 73 29.56 9.71 1.14 60 and above 64 26.48 7.99 1.00 Total 560 25.45 8.76 0.37 3.673 www.apjor.com Page 89 0.003* 5.928 0.001* Source: Computed from Primary data The obtained F value is 4.762 and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between policyholders satisfaction with product attributes. Hence, the stated hypothesis of (H 0 : 5(a)) there is no significant difference between age and policyholders satisfaction on product attributes is rejected. The obtained F value is 4.113 and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between policyholders satisfaction with product services. Hence, the stated hypothesis of (H 0 : 5(b)) there is no significant difference between age and policyholders satisfaction on product services is rejected. The obtained F value is 5.031 and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between policyholders satisfaction with respect to product information. Hence, the stated hypothesis of (H 0 : 5(c)) there is no significant difference between age and policyholders satisfaction on product information is rejected. The obtained F value is 5.320 and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between policyholders satisfaction with respect to risk coverage. Hence, the stated hypothesis of (H 0 : 5(d)) there is no significant difference between age and policyholders satisfaction on risk coverage is rejected. The obtained F value is 3.952 and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between policyholders satisfaction with respect to agent knowledge. Hence, the stated hypothesis of (H 0 : 5(e)) there is no significant difference between age and policyholders satisfaction on agent knowledge is rejected. The obtained F value is 3.763 and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between policyholders satisfaction with respect to physical facility. Hence, the stated hypothesis of (H 0 : 5(f)) there is no significant difference between age and policyholders satisfaction on physical facility is rejected. The obtained F value is 5.928 and it is significant at 5 per cent level. The value indicates that there is a significant mean difference between policyholders satisfaction with respect to service personal. Hence, the stated hypothesis of (H 0 : 5(g)) there is no significant difference between age and policyholders satisfaction on response of service personal is rejected. Further, the mean value indicates that the age category of below 20 years are less satisfied with the products attributes, product services, information, risk coverage, agent knowledge, physical facilities and service representative than the other age category of respondents.

DEMOGRAPHIC PROFILE AND POLICYHOLDERS PROBLEMS This section is devoted to testing the significant difference between demographic profile of the respondents with respect to policyholders problems in the services agents, general problems and compliant behaviour in the Nagapattinam District. The following null hypothesis has been formulated. H 0 : 1 There is no significant difference between demographic profile and problems faced by policyholders. H 0 : 1(a) There is no significant difference between demographic profile and problems in using agent services. H 0 : 1(b) There is no significant difference between demographic profile and policyholder general problems. H 0 : 1(c) There is no significant difference between demographic profile and policyholder problems in compliant behaviour. 5.3.1 To test the significant difference between age and policy holders problems in the LIC services. One way ANOVA is applied to ascertain the any significant difference between age and policy holders problems in the LIC services. Table 6: Age and Policy Holders Problems in the Services Std. Std. Age N Mean F value P value Deviation Error Problems Below 20 39 18.10 4.49 0.72 in the 21 to 30 86 20.85 2.42 0.26 using of 31 to 40 182 20.52 3.15 0.23 services of 41 to 50 116 19.90 3.81 0.35 5.440 0.001* the Agents 51 60 73 21.07 2.74 0.32 60 and above 64 20.16 3.00 0.37 Total 560 20.30 3.31 0.14 General Problems Complaint Behaviour Below 20 39 31.21 7.09 1.13 21 to 30 86 31.21 5.71 0.62 31 to 40 182 31.36 6.37 0.47 41 to 50 116 31.07 6.40 0.59 51 60 73 31.85 5.76 0.67 60 and above 64 28.33 8.96 1.12 Total 560 30.98 6.65 0.28 Below 20 39 16.13 2.99 0.48 21 to 30 86 16.20 2.70 0.29 31 to 40 182 16.26 2.90 0.21 41 to 50 116 15.34 3.23 0.30 51 60 73 16.45 2.65 0.31 60 and above 64 14.95 3.71 0.46 Total 560 15.93 3.05 0.13 2.471 0.032* 3.289 0.006* Source: Computed from Primary data The calculated F value of 5.440 and it is significant five per cent level. The value indicates that there is a significant difference between age and policy holder problems in using agent services. Hence, the stated hypothesis of (H 0 :1(a)) there is no significant difference between age and policy holder problems in using agent services is rejected. The calculated F value of 2.471 and it is significant five per cent level. The value indicates that there is a significant difference between age and policy holder general problems. Hence, the stated hypothesis of (H 0 :1(b)) there is no significant difference between age and policy holder general problems is rejected. www.apjor.com Page 90

The calculated F value of 3.289 and it is significant five per cent level. The value indicates that there is a significant difference between age and policy holder compliant behaviour. Hence, the stated hypothesis of (H 0 :1(c)) there is no significant difference between age and policy holder problems in compliant behaviour is rejected. Further, the age category of 51 to 60 years is having more problems of agent services, general problems and compliant behviour than the other category of policy holders. SUMMARRY OF MAJOR FINDINGS Most of the policy holders are clearly known the life insurance website of which constitutes 95.71 per cent and rest of 4.29 per cent of the policy holders are not known the LIC website. The usage of website is helpful and very helpful constitutes 32.14 per cent and 29.46 per cent respectively. However, it is not useful to the policy holders and average level of helping constitutes 27.50 per cent and 6.61 per cent respectively. Out total 143 policy holders constitutes 25.54 per cent, 295 policy holders constitutes 52.68 per cent and 47 policy holders constitutes 8.39 per cent are very high, high and moderate level awareness respectively in the insurance plans of LIC. However, 17 policy holders constitutes 3.04 per cent and 58 policy holders constitutes 10.36 per cent low and very level awareness about the LIC insurance plans. The surrender of policy is for a long period of time and the policyholders think about the legal formalities is more at the time of settlement are dominant problem among the policyholders with acceptance score of 4.09 and 3.99 respectively. The branch employees are not to treat the customers politely with acceptance score of 2.76, undue favouritism to some policyholders with acceptance score of 2.72, negative attitude of the agents and other officials for rendering service with acceptance score of 3.70 and rate of interest on loan is not reasonable also with acceptance score of 3.70 towards the policy holders. The respondents assign the least score of 2.51 for the branches are never customer oriented. SUGGESTIONS The study reveals that some of the policyholders are ready switch over from LIC to other insurance company due to high return, low premium, maximum risk converge, further growth and popularity. Hence, it is suggested to LIC of India has to evaluate the policyholders perception on the services at fixed interval level to identify and fulfill their requirements to retain them. The study also reveals that the policyholders dissatisfaction regarding the adequate seating arrangement and drinking water facility the LIC office. It is to provide sufficient space for seating arrangement and provided drinking water facility in the LIC office. There is a need for the insurance services to reaffirm themselves in view of the stiff competition. Therefore, the LIC of India shall have to reorient them in terms of the customer service parameters to instill the concept of quality service in the mind of the policyholders and further in terms of growth. In present competitive world, customer satisfaction has become an important aspect to retain the policy holders, not only growth of the corporation but also to survive. Policy holders service is the critical success factor and insurers through their best services would be able to reposition and differentiate itself from private life insurance. The policyholders in the Life Insurance Corporation are to feel that the settlement process is more formalities. Hence, it is suggested that the claim settlement process should be made fast and must not involve lengthy decision making process. A plan with high benefits at low premium rates should be planned to facilitate all sections of the policyholders. Extension branches can be opened in rural areas to facilitate the policyholders. Working hours can be increased to facilitate the payment of premium to the policy holders. www.apjor.com Page 91

Some special focus should be laid on individual risk coverage while designing the products to agriculturalists. The company, if possible should invest in advertising, conduct road shows, and spend money on hoardings, so that it can create awareness about its unknown products. CONCLUSION The present study concludes that, the LIC of India is the leading public sector insurance company in India has facing very stiff competition from the new players entering the market. LIC of India is facing increased competition on one front and a decline in the market share on the other hand. LIC has always been in the forefront of utilizing its recourses effectively. It has been striving to achieve effectiveness and excellence in its business operations. The present study suggested that the measures such as special events for policyholders, providing of prompt service, reducing the time period of surrendering the policy, increase the loan amount with policy, improvement in infrastructure, creativity and innovativeness, understanding the policyholders needs, policyholders contact programmes, providing update information, staff involvement, user friendly skills, customer compliant monitoring cell and quality improvement strategy will improve service quality of the LIC of India. This study is also found that majority of them willing to continue with LIC. This shows their trust in the Life Insurance Corporation. The LIC must know the need of their policyholders is to serve better than any other private players has made LIC to remain as the market leader. REFERENCES 1. Ahmed A. & Kwatra N., Level of Customers Satisfaction with their Perception on the Quality of Insurance Services Galaxy, International Interdisciplinary Research Journal (2014), Vol. 2(3), pp. 188-193. 2. Balachandran, S., Customer Driven Services Management, Response books (A Division of Sage Publications), New Delhi, 2001 3. Balasubramaniam A., Postal Life Insurance: its Market Growth and Policyholders Satisfaction, Samzodhana - Journal of Management Research (2014), Vol. 2(1), pp. 317-326. 4. Charles, P. Jones, Investment Analysis and Management, John Wiley and Sons (Asia) Pvt. Ltd., Singapore, 2002 5. Gopalakrisha, G, The Insurance Customer- the Consumer Protection act 1986 Volume VI, No. 3, February 2008, Page No. 33 6. Keerthi, P. and Vijayalakshmi, R., A Study on the Expectations and Perceptions of the Services in Private Life Insurance Companies, SMART Journals, Vol. 5, 2009. 7. Krishna Swami G., Principles and Practice of Life Insurance, Excel Books, New Delhi, 2009 8. Mark S. Dorfman, Introduction to Risk Management and Insurance, Englewood Cliff, N.J., Prentice Hall, New Delhi, 2002 9. Pranav Prashad, Catalyst for Financial Inclusion Insurance in the Rural and Social Sector, IRDA, Journal, April, 2009, p.20 10. Seshayyair, V., Group Life Insurance Business, Insurance Chronicle, the ICFAI University Press, March, 2004, pp. 22-26. 11. Srivastava, D.C. and Srivastava, S., (Eds.) Indian Insurance Industry Transition and Prospects, New Century Publications, New Delhi, 2001 12. Vijaya Kumar, A., Globalization of Indian Insurance Sector - Issues and Challenges, The Management Accountant, March, 2004, p.195 13. Yusuf T.O., Gbadamosi A. & Hamadu D., Attitudes of Nigerians towards Insurance Services: an Empirical Study, African Journal of Accounting, Economics, Finance and Banking Research (2009), Vol. 4(4), pp. 34-46 www.apjor.com Page 92