Final Report

ICFAI Business School-Dehradun
Gap Analysis between Customer’s Expectations and Current Provision of

Indian Life Insurance Industry-An Empirical Study in Dehradun
By
Rajkumar Mondal
Religare Insurance Broking Limited
1
A Report
On
Gap Analysis between Customer’s Expectations and Current Provision of
Indian Life Insurance Industry-An Empirical Study in Dehradun
By
RajKumar Mondal
(08BSDDU0088)
May 22, 2009 Friday
Company Guide Faculty Guide

Mr. Pushker Saxena Dr. Pavnesh Kumar
(Branch Manager-RIBL) (Faculty member-IBS-Dehradun)
2
“Hope” is the thing with feathers

That perches in the soul
And sings the tune without the words
And never stops at all,
And sweetest in the gale is heard;

And sore must be the storm
That could abash the little bird
That kept so many warm.
I’ve heard it in the chilliest land

And on the strangest sea,
Yet never, in extremity,
It asked a crumb of me.
Emily Dickinson
3
Table of Contents
Authorization ............................................................................................................................ 5
Acknowledgement ..................................................................................................................... 6
Executive Summary ................................................................................................................... 7
Objective ................................................................................................................................... 8
Introduction ............................................................................................................................. 9
Vision of RIBL......................................................................................................................... 11
Value Proposition ................................................................................................................... 13
Service Offerings by RIBL ....................................................................................................... 14
An overview of Insurance Sector in India ................................................................................ 15
Limitations of the Study ........................................................................................................... 16
Principle of Insurance ............................................................................................................. 17
Investment Plan....................................................................................................................... 19
The State of Service in Insurance............................................................................................. 21
Current Provision of Insurance Sector .................................................................................... 22
Service Quality ....................................................................................................................... 23
Model of Service Quality Gaps ................................................................................................ 24
Model of service quality gaps .................................................................................................. 26
Factor of Service Quality ........................................................................................................ 27
The Five Key Service Dimensions............................................................................................ 28
Challenges of insurance sector ................................................................................................ 29
Methodology ........................................................................................................................... 30
Observations & Findings ........................................................................................................ 32
Experience at Religare Insurance Broking Limited.................................................................. 35
Recommendation ..................................................................................................................... 36
Conclusion .............................................................................................................................. 37
Annexure-I .............................................................................................................................. 38
Key words ............................................................................................................................... 41
References............................................................................................................................... 42
4
Authorization
This summer internship program has been conducted for partial fulfillment of MBA-program at
IBS-Dehradun. Summer Internship Program also included a project work on ―Gap Analysis
between Customers’ Expectations and Current Provision of Indian Life Insurance Industries-An
Empirical Study in Dehradun‖.
Religare Insurance Broking Limited-Dehradun and ICFAI Business School-Dehradun hereby
authorize Mr. Rajkumar Mondal to conduct his research dissertation under Mr. Pushkar Saxena,
Assistance Business Development Manager and Dr. Pavnesh Kumar, Faculty member starting
from date: 24th February, 2009 to 23rd May, 2009.
A complete report of research findings will have to be provided to Religare Insurance Broking
Limited- Dehradun.
Signature: ……………………….. Signature: ……………………………

Mr. Pushker Saxena Dr. Pavnesh Kumar
(Branch Manager-RIBL) (Faculty Member-IBS-Dehradun)
5
Acknowledgement
I would like to thank everyone who stood as a pillar of support to me throughout this project.
At the outset I would like to thank Religare Insurance Broking Ltd, Dehradun for providing this
wonderful opportunity to pursue Summer Internship Project. I express my gratitude to Religare
Insurance Broking Ltd, for providing an ideal platform to learn in their company during the
course of the program.
I would like to thank Mr Pushkar Saxena (Branch Manager, Dehradun), & Mr.Sumit Sharma
(Relationship Manager – Birla Sun life) who have been a beacon light while guiding me
through the project. I would like to thank Mr. Ashoke Thapa for his constant encouragement.
Their insights and support had been the driving force behind this summer internship project
I am greatly indebted to my Faculty guide, Dr. Pavnesh Kumar, & a very special thank to the
entire IBS-D faculty member for helping me during the course. I am also very much grateful to
Mr. Sanjeev Malaviya who has been putting continuous effort to introduce students to corporate
brands.
Rajkumar Mondal
(08BSDDU0088)
6
Executive Summary
With the liberalization and entry of private players in insurance field, the Indian insurance
sector has started showing signs of significant change. Within a short span of time, private
insurance has acquired 13% of life insurance market and 14% of non-life market. The study will
help to find out the gap lies between customer’s perceptions and management perceptions.
Servqual model will be used to measure the service quality that is delivered by insurance
organizations. Colleting primary data we can do the factor analysis. We can get the dependency
factor in availing the insurance risk coverage on income level, perception, awareness about
insurance sector at present. Apart from the investment in insurance sector people can be more
knowledgeable about other investment or saving instruments. The report also considers the
current state of insurance market technical assistance, and examines key relationships between
management perceptions and customers’ perceptions. Insurers’ measure and manage non-
diversifiable risk faced by creditors and borrowers more efficiently than other financial
institution, facilitating the provision of credit.
7
Objective
Project will help to make people more aware about various products of different insurance
companies. At the end of summer training and the project work, the study will help to make a
bridge between customers’ perception and management perception of various organizations.
The main objectives are as followed
 To find out the gaps lying between customers’ expectation and current provision of
Indian life insurance companies.
 Position of various insurance companies.
 What are reasons behind the Gap?
 Solution to minimize the gap.
 What Religare Insurance Broking Limited is doing to meet customer’s expectations?
The study may help insurance sector in determining the pure protection product, a refreshing
look at unit-linked plans, and improved service level in future. Insurance sector may come up
with new innovation like customized product where customer can have option to choose the
premium amount based on their income level. The study would be help full to Religare
Insurance Broking limited to find out the place for improvement of their pre-sale service, sale
service and post-sale service.
8
Introduction
Since late 1990, the Indian Insurance market has undergone major structural changes. The government
monopoly was dissolved, private companies were permitted to operate and brokers suddenly had a role
to play. In this country of one billion people, the untapped potential for insurance and reinsurance
business is enormous. Nevertheless, impediments to an open and competitive market still exist in the
form of restrictions on foreign investments, compulsory tariffs and mandatory reinsurance cessions.
- By Clive Baker, Principal at Guy Carpenter
In some sense we can say that insurance appears simultaneously with the appearance of human
society. We know of two types of economies in human societies: money economies (with
markets, money, financial instruments and so on) and non-money or natural economies (without
money, markets, financial instruments and so on). The second type is a more ancient form than
the first. In such an economy and community, we can see insurance in the form of people
helping each other. For example, if a house burns down, the members of the community help
build a new one. Should the same thing happen to one's neighbor, the other neighbors must
help? Otherwise, neighbors will not receive help in the future. This type of insurance has
survived to the present day in some countries where modern money economy with its financial
instruments is not widespread
9
A contract between two parties is known as Insurance. Shifting or transferring of risk of loss or
damage, from owners and thereby sharing of losses by all the members of the group are main
uniqueness. Thus a contract of insurance is a contract by which one party undertakes to make
good the loss of another, in consideration of a sum of money, on the happening of a specified
event. For example fire, accident or death.
Since liberalization in 2000, the Indian insurance sector has become a buyer’s market. Owing to
liberalization customer has the choice to select from variety of products, services and service
providers. With this idea Religare Insurance Broking Limited has come out on the battlefield of
insurance. RIBL is working with nineties insurance company’s product. They can reach every
customer whatever customer needs.
10
Vision of RIBL
Source: www.religare.in Fig.1 Vision of RIBL
Religare Insurance Broking Limited (RIBL), a 100% subsidiary of Religare Enterprises Limited
is one of India’s leading insurance broking firms, with one of the largest retail networks in the
country. The company holds a composite broker’s license in the Life, General and Reinsurance
domains.
11
An insurance portfolio is designed from a choice of more than 3000 life and general insurance
products & plans from more than 30 companies. This one easy window for any brand of
insurance, any kind of cover, offers tailor made insurance solution with not just the right kind of
cover but also the right mix of cover.
RIBL not only provides customized solutions to individual clients, but also to some of the
leading corporate houses and institutions across the country.
RIBL has nineties preferred partner. Mostly RIBL is dealing with the following life insurance
company’s products.
i. Birla Sun Life Insurance Limited
ii. Tata-AIG
iii. Kotak Mahindra
iv. Aviva life Insurance
v. ICICI-Prudential
vi. Aegon-Religare
vii. Bajaj Allianz
viii. HDFC standard Life
Apart from these life insurance products RIBL also deals with General insurance (GI). They
have preferred partner for GI as followed
i. Reliance General Insurance
ii. ICICI Lombard
iii. United Insurance Company Limited
iv. National Insurance Company Limited
12
Value Proposition
RIBL got an edge over other broking house in this sector. RIBL is a sister concern of Religare
Enterprose Limited (REL). RIBL can reach to the customers by promoting any of the insurance
company’s products. RIBL believe to help people and manage their investment portfolio. The
value proposition is given Table 1.
Value Proposition
Presence Pan India foot print
Strong Domain Expertise Rich domain knowledge and Industry experts
Comprehensive Risk Portfolio Expertise to meet all your Insurance needs
Management
Flexibility Market understanding, proactive and customer centric
Stability Part of a large diversified Indian trans-national group
with presence in over 1550 locations across more than
460 cities & towns in India and globally across 10
countries.
Infrastructure Human, technical, physical presence, CRM
Quality Best business practices and highest quality service
Strategic Partnerships Alliance with global and national players to get you
the best deals
Table 1 Source: www.religare.in
13
Service Offerings by RIBL
Figure 2
14
An overview of Insurance Sector in India

The birth and growth of the Insurance sector in India is quite breath taking. In the year 1818 the
Oriental Life Insurance Company was started at Calcutta. In 1912 the Indian Life Assurance
Companies Act was enacted as the first statue to regulate the life insurance business. In 1938
the earlier legislation was consolidated and amended to become the Insurance Act with
objective of protecting the interests of the insuring public. In 1956, the LIC of India was formed
under the LIC Act, 1956 with capital a capital contribution of Rs. 5 crores. In 1999, the
Insurance Regulatory and Development Authority popularly known as IRDA was created by an
act of the parliament to regulate all insurance companies and business in India. Below the given
chart shows that growth rate of different insurance company in collecting the premium for the
last two years.
Growth Rate of Premium of life Insurance

Company
250.00%
200.00%
Growth Rate
150.00%
100.00%
50.00%
0.00%
ICICI HDFC Birla MAX Kotak
Bajaj TATA Relianc
Pruden SBI Life Standa Sun LIC New AVIVA Mahin
Allianz AIG e Life
tial rd Life York dra
Series1 99.20% 57.20% 209.70 57.80% 30.10% 38.50% 118.10 107.60 77.60% 54.60% 38.10%
Figure 3 Source: Questionnaire
15
Limitations of the Study
People living in Dehradun are so conservative that they were not ready give the proper answer
to the asking question. In that case some data were rejected due not properly filled
questionnaire. This is known in Business Research Methodology as respondent error. After
availing the one week class room training on various products there was sales target that
involved more time. So time worked as a barrier to conduct the research. Owing to ongoing
strike into university campus it was difficult to avail the library facility to give proper literature
view to the research.
16
Principle of Insurance
1. A large number of homogeneous exposure units.
The vast majority of insurance policies are provided for individual members of very large
classes. The existence of a large number of homogeneous exposure units allows insurers to
benefit from so-called ―law of large numbers,‖ which in effect states that as the number of
exposure units increases, the actual results are increasingly likely to become close to
expected results.
2. Definite Loss
The event that gives rise to the loss that is subject to the insured, at least in principle, take place
at a known time, in a known place, and from a known cause. The classic example is death of an
insured person on a life insurance policy. Other types of losses may only be definite in theory.
Occupational disease, for instance, may involve prolonged exposure to injurious conditions
where no specific time, place or cause is identifiable.
3. Accidental Loss
The event that constitutes the trigger of a claim should be fortuitous, or at least outside the
control of the beneficiary of the insurance. The loss should be pure in the sense that it results
from an event for which there is only the opportunity for cost. Events that contain speculative
elements, such as ordinary business risks, are generally not considered insurable.
4. Large Loss
The size of the loss must be meaningful from the perspective of the insured. Insurance
premiums need to cover both the expected cost of losses, plus the cost of issuing and
17
administering the policy, adjusting losses, and supplying the capital needed to reasonably assure
that the insurer will be able to pay claims.
5. Affordable Premium
If the likelihood of an insured event is so high, or the cost of the event so large, that the
resulting premium is large relative to the amount of protection offered, it is not likely that
anyone will buy insurance, even if on offer. Further, as the accounting profession formally
recognizes in financial accounting standards, the premium cannot be so large that there is not a
reasonable chances of a significant loss to the insurer. If there is no chance of loss, the
transaction may have the form of insurance, but not the substances.
6. Calculable Loss
There are two elements that must be at least estimable, if not formally calculable: the
probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise,
while cost has more to do with the ability of a reasonable person in possession of a copy of the
insurance policy and a proof of loss associated with a claim presented under that policy to make
a reasonably definite and objective evaluation of the amount of the loss recoverable as a result
of the claim
7. Limited risk of catastrophically large losses
The essential risk is often aggregation. If the same event can cause losses to numerous
policyholders of the same insurer, the ability of that insurer to issue policies become
constrained, not by factors surrounding the individual characteristics of a given policyholder,
but by the factors surrounding the sum of all policyholders so exposed.
18
Investment Plan
In the insurance sector there are mainly four type of type of investment plan Endowment plan,
Term Plan, Pension Plan, ULIP.
Endowment Plan
Endowment plans are very popular as they serve two purposes — life cover and savings. Under
a plain vanilla endowment plan, the policyholder pays regular premiums for the policy term. If
the policyholder dies during the policy term, the nominee gets the death benefit — the sum
assured and accumulated bonuses. On survival, the policyholder gets a survival benefit,
including vested bonus and terminal bonus, if any.
Table 2
After the entry of private players, a number of innovative variants have been introduced. The
features offered, structuring of bonus payments and the riders differentiate the products. This
week, we will take a look at the endowment schemes offered by HDFC Standard Life, Max
New York Life, ING Vysya Life, OM Kotak Mahindra and Birla Sun Life.
19
Term Plan
Term Insurance, also known as pure life cover, is the cheapest and the simplest form of
insurance. Under this insurance policy, against payment of regular premium, the insurer agrees
to pay your beneficiaries the sum assured in event of your premature death. However, if you
survive till the end of the policy term, nothing is payable to you. This policy has no savings
component and the premiums you pay are purely a cost to buy you life cover. This is suitable
for you if
 You are looking for a low cost life cover without any savings benefits attached.
 You are at that stage in life where insurance cover is vital but you cannot afford high
premium payment due to low income.
Unit Link Insurance Plan
ULIP is a market-linked life insurance plan, which invests the premium money in various
proportions in the equity and debt markets. In effect, this ensures that the returns on such plans
are linked to the performances of the markets while also offering the individual an insurance
cover at the same time.
20
The State of Service in Insurance

First presentation must be nice to be intact in customers’ mind for ever. Two major factors that
shape the practice of marketing are the environment and how a particular business views and
organizes its marketing efforts. There are three major tasks that a market oriented manager in a
financial service organization like insurance must accomplish in order to achieve success and
make continuous growth.
Figure 4
First task: To identify the key strategic success factors operating in the specific industry and to
build the company’s unique strategy around these factors.
Second task: The manager must be able to establish an organization and system capable of
creating and implementing plans built around the company’s strategy. Third task: The manager
must be able to free market its departmental base and infuse and defuse it throughout the
organization.
21
Current Provision of Insurance Sector

Since late 1999, the Indian Insurance market has undergone major structural changes. The
government monopoly was dissolve, private companies were permitted to operate, and brokers
suddenly had a role to play. In this country of one billion people, the untapped potential for
insurance. This insurance market is open competition play ground. IRDA has come up with full
authorization to regulate the insurance sector since 1999. Since 2000 the private players have
captured 26% market share Indian insurance sector.
Market Share of Different Insurance Company in

Dehradun
Bajaj Kotak HDFC SL SBI Life Tata ICICI

Allianz 3.5% 5% 4% AIG Prudential
Religare Aegon
2.5% 6% 7%
8% Birla Sun life
12% IDBI Forties
Max New York Aviva 0.5%
1% 3%
Reliance Life
1.5%
LIC
46%
22
Service Quality
Service quality is a concept that has aroused considerable interest and debate in the research
literature because of the difficulties in the both defining it and it with no overall consensus
emerging on either (Wisniewski, 2001). Service quality can be defined as the difference
between customer expectations of service and perceived service. If expectations are greater than
performance, then perceived quality is less than satisfactory and hence customer dissatisfaction
occurs (Parasurman et al., 1985; Lewis and Mitchell, 1990). Always there exists an important
question: why should service quality be measured? Measurement allows for comparison before
and after changes, for the location of quality related problems and for the establishment of clear
standards for service delivery.
Definition of service quality
There are five factor in which the term quality can be defined
1. An innate excellence
2. Product based
3. User based
4. Manufactured based
5. Value based
23
Model of Service Quality Gaps

There are seven major gaps in the service quality concept.
I. GAP1: Customers’ expectations versus management perceptions
As a result of the lack of a marketing research orientation inadequate upward

communication and too many layers of management.
II. GAP2: Management perceptions versus service specification
As a result of inadequate commitment to service quality, a perception of unfeasibility,

inadequate task standardization and an absence of goal setting.
III. GAP3: Service specifications versus service delivery
As a result of role ambiguity and conflict, poor employee-job fit and poor technology-job fit,
inappropriate supervisory control systems, lack of perceived control and lack of teamwork.
IV. GAP4: Service delivery versus external communication
As a result of inadequate horizontal communications and propensity to over promise.
V. GAP5: The discrepancy between customer expectations and their perceptions of

service delivered
As a result of the influences exerted from the customer side and the shortfalls on the part of
service provider. In this case, customer expectations are influenced by the extent of personal
needs, word of mouth recommendation and past service experiences.
24
VI. GAP6: The discrepancy between customer expectations and employees’

perceptions
As a result of the differences in the understanding of customer expectations by front-line service

providers.
VII. GAP7: The discrepancy between employee’s perceptions and management

perceptions
As a result of the differences in the understanding of customer expectations between managers

and service providers.
According to Brown and Bond (1995), ―The gap model is one of the best received and most
heuristically valuable contributions to the service literature‖. The model identifies seven key
discrepancies or gaps relating to managerial perceptions of service quality and tasks associated
with service delivery to customers. The first six gaps (Gap1, Gap2, Gap3, Gap4, Gap6 and
Gap7) are identified as functions of the way in which service is delivered, whereas Gap5
pertains to the customer and such as is considered to be the true measure of service quality. The
Gap on which the SERVQUAL methodology has influence has is GAP5. Fig 6 describe the
whole things by flow diagram.
25
Model of service quality gaps
Figure 6 Model of service quality gaps (Parasuraman et al., 1985; Curry, 1999; Luk and Layton,
2002)
26
Factor of Service Quality

There are two perspectives of service quality measurement: Internal and External.
Internal: It is defined as zero defects doing it right the first time or conformance to
requirements.
External: This factor makes organization understand in terms of customer perception, customer
expectation, customer satisfaction, customer attitude and customer delights. External
perspective is becoming important in the light of increasing consumer awareness, changing
customer tastes, and growing customer expectations.
Figure 7 Source: www.marketingteacher.co
27
The Five Key Service Dimensions

Tangibles- The appearance of physical facilities, equipment, personnel and information
material.
Reliability- The ability to perform the service accurately and dependably.
Responsiveness- The willingness to help customers and provide a prompt service
Assurance- A combination of the following
- Competence- having the requisite skills and knowledge

- Courtesy- politeness, respect, consideration and friendliness of contact staff
- Credibility- trustworthiness, believability and honesty of staff
- Security- freedom from, risk or doubt
Empathy- A combination of the following:
- Access (physical and social)- approachability and ease of contact

- Communication- keeping customers informed in a language they understand and
really listening to them
- Understanding the customer- making the effort to get to know customers and their
specific needs
28
Challenges of insurance sector

 Professionals and experts are in short supply. Man power required has increased
 High salary structure to retain and gain expert employees
 Being a large country it is difficult to cover all the people in India.
 Micro insurance and financial inclusion will be big challenges for all the companies.
 There is a shift from traditional endowment policies to unit linked policies.
 There is a big challenge for private players in small city like Dehradun.
 Government service holders are not convinced by private players.
29
Methodology
Literature Survey
The analysis has started with the literature survey of various news papers, magazine
which helped the various aspects of the insurance industry in India. According to
Parasuraman et al (1985) customer’s perceptions of the service received equate with
customer’s prior expectations, and then a quality service has been delivered.
Design of Questionnaire
A questionnaire was prepared on the basis of objective of the study. It was parted into
four categories as follows
 Personal details of the customers

 General awareness of various insurance companies and their products.
 Based on customer’s income level the tendency towards investment as well as
risk cover insurance.
 Knowledge about various investment/savings instruments.
A sample questionnaire is given into Annexure-I.
Design of sample survey
Primary data was collected in the sample size of hundred due to time constraint. Data was
collected through one to one interaction from different working people. The respondents are
from govt. officers, businessmen, shopkeepers etc. They respondent were mostly from Rajpur
Road area, Balliwala, Canuaght Place, FRI, ISBT, Gandhi Road area. . They were from
different age group and income level.
30
Data Tabulation
After the data collection the data was transfer into information with tabular form into Microsoft
Excel-2007.After making tabulation pie charts are made based on age group, income, and
intention to have policy like endowment, term plan, ULIP, Pension plan, Mediclaim. All the
data have been collected through questionnaire were put on excel sheet to get the pie chart and
bar graph.
Figure 8: Schematics showing Methodological Steps
31
Observations & Findings

Out of 100 sample size it was found that
Policy holder according to age group the insurance policy
according age group holder in Dehradun. From that research made soft
Less than 25 26-35 Greater than 35 remarks that almost all the people living in
10% Dehradun are insured. Survey was done various
26%
64%
part of Dehradun place like Rajpur Road area,
Balliwala Chowk, GMS Road, Canaught Place.
Figure 9 Source: Questionnaire Each and every company has an age limit to buy
an insurance policy. But when survey was
conducted the respondent turned up with answer that there should not be an age limit to buy an
insurance policy. 33% of respondent were strongly agreed with no such limit of age.
View on Age limit to Buy an

insurance policy
25-35 36-45 46-55 56-65 No such limit
33% 28%
24%
7%
8%
Respondent believe that when a man needs to be insured a man can take easily without any
complication.
Survey was done at various offices, Shopkeeper, Business house. Mostly respondents were
found to be service men i.e. 65%.
32
Sample was taken from various

Professional office, shopkeeper and professional.
Out of there 65% respondent were
Professional from govt. service holder.
12% Self
Employed Mostly people were fall under income
Service 23%
65% slab of 1 lakh to 2.99 lakh i.e. 45%.
Those people have only one or two
policy.
Income Slab
0.5-.99 lacs 1-2.99 lacs 3-4.99 lacs Above 5 lacs
12%
16%
27%
45%
33
Savings account in bank, NSC, Shares, Insurance Real estate is the saving or investment
instrument. When survey was conducted most of the respondents were not aware about all the
instrument. Mainly people in Dehradun invest money in insurance sector in LIC and some of
them have savings account and fixed deposits.
Awareness of investment
Instrument
100
80
60
40
20
0
No. of people Aware No of people Unaware
Invest Plan
No. Of People Opt Not Opt
63 68
55 58
45 37 46 54 42
32
Figure 13& 14 Source: Questionnaire
55% of respondents were found that they opt for secured plan so called endowment plan.
34
Experience at Religare Insurance Broking

Limited
At the platform of Religare Insurance Broking limited there are lot more things to learn.
Experience with them was a tremendous opportunity to groom. There were one week class
room training on insurance company and their products. There was assignment to meet
customer and make them understand about the necessity to be insured. I have been assigned
several tasks like make people convinced about RIBL product in the field of LI and GI.
By taking up those challenges I went out into the market to make new customer for RIBL. On
the tenure period I visited various place in Dehradun like Ponta, Rajpur Road, Defense colony,
ISBT, etc. Apart from that I build a business to business relationship between United Insurance
Co. Limited and RIBL. This can be defined as corporate term corporate tie up.
People working in RIBL are really help to all of us. Whenever we need them we got constant
support. For an example when I went to Ponta to meet a potential customer I was little bit
nervous. I got company from a relationship manager to meet the customer and he took the
initiate to meet the customer. At the end of the deal I achieve a corporate success. I got the
policy within very next week. This was only being possible because of their continuous support.
I can lastly quote RIBL provides
1. Friendly environment
2. Training program
3. Space for placement
4. Relationship among employee and trainee.
35
Recommendation
Firstly the entire insurance sector is playing in the Dehradun market will have to make people
more aware about their existence into market through different marketing channel. RIBL can
takes this opportunity to have nineties company’s product within it. They can conduct four in a
year a survey where they can identify targeted customers, customer’s needs and wants.
Insurance company can recruit a portfolio manager for a group customer who can manage the
customer’s portfolio. Insurance company deletes the hidden charges in investing plan like
allocation charges and switching charges.
Figure 15
36
Conclusion
SERVQUAL methodology as an analytical approach for evaluating the difference between

customers’ expectations and perceptions of quality was also studied. While this research
provides some perspectives to the field of service quality, it is believed that there are a number
of things that should be done to confirm the demonstrated methodologies as well as to expand
the use of SERVAQUAL in design and improvement of quality services
Study concludes that people in Dehradun is less aware about private players in insurance sector
by taking 100 sample sizes. Religare Insurance Broking Limited can hold a good market share
in near future. They developed some new customer friendly product which will give constant
growth of the company as well as insurance sector in India. They can work like gravitational
force in very near future where each and every new customer will run towards it.
At the end of the research the study conclude that a lack of advice and poor information from
insurers means that policyholders may be switching out of with profits when they should be
staying.
In summary, the research point to the following risks:
that, because of the lack of ongoing advice, consumers may not be informed or get advice
when they should get.
That a lack of clear understanble information from insurers is an obstacle to taking informed
decisions, or giving informed advice; and
In the absence of advice and clear communication s, consumers may take poor decisions about
their with- profits and other investment.
The research found people living in Dehradun want a good quality service in terms of pre sale,
sale service and post sale service. People do not believe in private sector because of hidden cost
of investment through various channels. People do not the technicality part in investment plan.
37
Annexure-I
Gap analysis between customer’s expectation and current

provisions of Indian Life Insurance Industry-An empirical study in
Dehradun
Questionnaire
Name: …………………………………………………………………..
Address: ……………………………………………………………….......
………………………………………Tel/ Mobile …………......................................
Date of Birth: [ DD ]/ [ MM ]/ [ YYYY ] Sex: M [ ]; F [ ]
Profession
1. Service [ ] 2. Self employed [ ] 3. Professional [ ]
4. Any other
……………………………………………………………………………………………………….
Total no. of family members (Please Tick)

A. 1-4 [ ] B. 5-7 [ ] C. 7 and above [ ]
No. of earnings members (Please Tick)

I. 1-2 [ ]
II. 3-4 [ ]
III. 5 and above [ ]
Gross annual income (please tick)

I. 50,000-99,999 INR [ ]
II. 1,00,000-2,99,999 INR [ ]
III. 3,00,000-4,99,999 INR [ ]
IV. 5,00,000 INR and above [ ]
38
Do you have any Insurance policy? (Please Tick)
Yes [ ] No [ ]
In which plan have you invested? (Please Tick)
1. Endowment plan [ ]
2. Term plan [ ]
3. ULIP [ ]
4. Pension
5. Medi Claim [ ]
6. Health Insurance [ ]
Do you think there is an age limit for an individual to buy a Life Insurance
Policy? (Please Tick)
i. 25-35 yrs [ ] ii. 36-45yrs [ ] iii. 46-55yrs [

]
iv. 56-65yrs [ ] v. No Such limit [ ]
Which among these are you aware of as a savings/investment channel?

(Please Tick)
Banks [ ] NSC [ ] Shares [ ]
Insurance [ ] Real Estate [ ] Fixed Deposits [ ]
Gold [ ] Post office [ ] Govt. Bonds [ ]
Debentures [ ] Commodities [ ] PPF [ ]
39
Your investment in life insurance is of
I. 0-5yrs [ ]
II. 6-10yrs [ ]
III. 11-15yrs [ ]
IV. Above 15yrs [ ]
According to you rank the following company (1 is most preferred and 13 is

least preferred)
Sl.No Company name Rank

1 Birla Sun Life
2 Tata AIG
3 ICICI Prudential
4 IDBI Forties
5 LIC
6 Reliance Money
7 Max New York
8 Aviva Life Insurance
9 Religare Aegon
10 Bajaj Alliance
11 Kotak Life Insurance
12 HDFC
13 SBI Life Insurance
Name of the Interviewer:
Place:
Date: Signature of interviewee
40
Key words
LI – Life Insurance
GI- General Insurance
ULIP- Unit Link Insurance Plan
Service,
Quality,
Gaps,
SERVQUAL,
Customer,
Expectations,
Perceptions
41
References
 http://www.religare.in/vision access on April 12, 2009.
 Shahin Arash, Department of Management, University of Isfahan, Iran –“A Framework for
Determining and Prioritizing Critical Factors in Delivering Quality Services‖ volume 2
April 2002.
 Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985), "A conceptual model of service
quality and its implication", Journal of Marketing, Vol. 49, fall, pp. 41-50.
 Insurance Sector Briefing: Delivering the Tiner Reforms (April)

http://www.fsa.gov.uk/pubs/other/tinner_insurance_report.pdf/access on May 10,
2009
 Sheetal B. Sachdev and Harsh V. Verma (2004) ―Relative Importance of Service

Quality Dimensions: A Multisectoral Study‖-Journal of Services Research, Volume
4, Number 1 (April-September).
 Business Research Methods by ICMR------ page no.-116
 Legal Environment of Business by ICMR—page no.-241
 The ICFAI University Journal of Consumer Behavior, Vol. III, No. 3, 2008, page
no.-33.
 Insurance Sector Briefing: Principles & Practices of Financial Management (October 2005)
http://www.fsa.gov.uk/pubs/other/isb_management.pdf/access on May 12, 2009.
 “Insurance Global Industry Guide,‖ Research and Markets December 2006

http://www.researchandmarkets.com/reportinfo.asp?cat_id=0&report_id=22
8125&q=global%20insurance%20market&p=1 /access on May 10, 2009.
42
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ICFAI Business School-Dehradun

Gap Analysis between Customer’s Expectations and Current Provision of

Company Guide Faculty Guide

“Hope” is the thing with feathers

And sweetest in the gale is heard;

I’ve heard it in the chilliest land

Signature: ……………………….. Signature: ……………………………

Source: www.religare.in Fig.1 Vision of RIBL

Table 1 Source: www.religare.in

Service Offerings by RIBL

An overview of Insurance Sector in India

Growth Rate of Premium of life Insurance

Figure 3 Source: Questionnaire

Limitations of the Study

7. Limited risk of catastrophically large losses

Unit Link Insurance Plan

The State of Service in Insurance

Current Provision of Insurance Sector

Market Share of Different Insurance Company in

Bajaj Kotak HDFC SL SBI Life Tata ICICI

Figure 5 Source: Questionnaire

Definition of service quality

Model of Service Quality Gaps

I. GAP1: Customers’ expectations versus management perceptions

As a result of the lack of a marketing research orientation inadequate upward

II. GAP2: Management perceptions versus service specification

As a result of inadequate commitment to service quality, a perception of unfeasibility,

III. GAP3: Service specifications versus service delivery

IV. GAP4: Service delivery versus external communication

As a result of inadequate horizontal communications and propensity to over promise.

V. GAP5: The discrepancy between customer expectations and their perceptions of

VI. GAP6: The discrepancy between customer expectations and employees’

As a result of the differences in the understanding of customer expectations by front-line service

VII. GAP7: The discrepancy between employee’s perceptions and management

As a result of the differences in the understanding of customer expectations between managers

Model of service quality gaps

Factor of Service Quality

Figure 7 Source: www.marketingteacher.co

The Five Key Service Dimensions

- Competence- having the requisite skills and knowledge

Empathy- A combination of the following:

- Access (physical and social)- approachability and ease of contact

Challenges of insurance sector

 Personal details of the customers

A sample questionnaire is given into Annexure-I.

Design of sample survey

Figure 8: Schematics showing Methodological Steps

Observations & Findings

View on Age limit to Buy an

Figure 10 Source: Questionnaire

Sample was taken from various

Figure 11 Source: Questionnaire

Figure 12 Source: Questionnaire

No. of people Aware No of people Unaware

Figure 13& 14 Source: Questionnaire

Experience at Religare Insurance Broking

SERVQUAL methodology as an analytical approach for evaluating the difference between

Gap analysis between customer’s expectation and current

Date of Birth: [ DD ]/ [ MM ]/ [ YYYY ] Sex: M [ ]; F [ ]

Total no. of family members (Please Tick)

No. of earnings members (Please Tick)

Gross annual income (please tick)

In which plan have you invested? (Please Tick)