INTRODUCTION

The Service Sector has assumed greater economic importance over past decade.India is
15 in services output.It provides employment to 23% of work force and it growing
fast,growth rate 7.5% in 1991-2000 up from 4.5% in 1951-1980.It has the largest share in
GDP,according for 60.7 % in 2006 up from 15% in 1950.According to data for the
financial year 2006-2007, the share of services, industry, and agriculture in India's GDP
is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively. The fact that the service
sector now accounts for more than half the GDP marks a watershed in the evolution of
the Indian economy and take it closer to the fundamental of a developed economy.
Services or the "tertiary sector" of the economy covers a wide gamut of activities like
trading, banking & finance, insurance, real estate, transportation, security, management &
technical consultancy among several others.LIC contribute 4 percent of the total GDP of
the india.

The Life Insurance Corporation of India (LIC) is the largest state-owned life insurance
company in India, and also the country's largest investor. It is fully owned by the
Government of India. It also funds close to 24.6% of the Indian Government's expenses.
It has assets estimated of 9.31 trillion (US$206.68 billion). It was founded in 1956 with
the merger of more than 200 insurance companies and provident societies. Headquartered
in Mumbai, financial and commercial capital of India, the Life Insurance Corporation of
India currently has 8 zonal Offices and 101 divisional offices located in different parts of
India, at least 2048 branches located in different cities and towns of India along with
satellite Offices attached to about some 50 Branches, and has a network of around 1.2
million agents for soliciting life insurance business from the public.

BAJAJ Allianz Life Insurance Company is a joint venture between two leading
conglomerates,Bajaj Auto Limited, one of largest manufactures of motorcycles and
scooters in the world, and Allianz AG of Germany one of the largest insurance
companies. Bajaj Allianz Life Insurance Co. Ltd. was incorporated on 12th March 2001.
The company received the Insurance Regulatory and Development Authority (IRDA)
certificate of Registration (R3) No 116 on 3rd August 2001 to conduct Life Insurance
business in India.

Customer satisfaction is a term frequently used in marketing,It is a measure of how

products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services (ratings)
exceeds specified satisfaction goals.Customer satisfaction provides a leading indicator of
consumer purchase intentions and loyalty.

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 2. REVIEW OF RELATED LETERATURE

MS. BABITA YADAV (2011):The study is attempts to measure customer satisfaction

level on various Insurance services offered by LIC and also examine the reasons for
customer dissatisfaction. The study is empirical based and the primary research
conducted through a market survey consisting of 100 respondents of Jabalpur city of
Madhya Pradesh. A well structured questionnaire and Interview method were used for
primary data collection. Simple statistical tools like percentage and scaling techniques
were employed for data analysis. Customer satisfaction, Customer perception and various
quality dimensions of LIC are the main focus of the study. The study is significant also
because it will help LIC to create a positive impact on its customers by working on its
lacking qualities. Customers are the main pillars of any business and customer service is
the critical success factor in a company and providing outstanding customer service
differentiates great customer service from indifferent customer service

Dr. Masood H Siddiqui(2010): Liberalization of the financial services sector has led to
insurance companies functioning increasingly under competitive pressures; so companies
are consequently directing their strategies towards increasing customer satisfaction and
loyalty through improved service quality. The present study strives to develop a valid
andreliable instrument to measure customer perceived service quality in life-insurance
sector. The resulting validated instrument comprised of six dimensions: assurance,
personalized financial planning, competence,corporate image, tangibles and technology.
The gap scores show that there is ample room for improvement in all the aspects related
to service quality. These results would help the service managers to efficiently allocate
attentionand resources among these dimensions on the differential basis, consistent with
the customer priorities. These findings can be transformed into effective strategies and
actions for achieving competitive advantage through customer satisfaction and retention..

Rand, Graham K(2004) There is widespread customer dissatisfaction in the insurance

industry,stemming from insurers’ failure to satisfy customers needs Therefore, further
research to improve the industry’s understanding of service quality is required. Using
data from the Greek and Kenyan insurance industries, service qualityis
measured using the SERVQUAL methodology to identify quality determinants and
existing quality gaps in the industries. Quality improvement strategies are recommended
in each case. Some observations are made on the efficacy of the SERVQUAL diagnostic
in assessing service quality in the insurance industry. Quality gaps that obtained in the
insurance industries of Greece and Kenya were largely similar. The dimensions reliability
and empathy were the most deficient, and any genuine quality intervention strategy
should prioritize their improvement.

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Guillén, M., Perch-Nielsen, J.; Pérez-Marín, A.M. (2009): Customer loyalty is one of the
main business challenges, also for the insurance sector. Nevertheless, there are just a few
papers dealing with this problem in the insurance field and specifically considering the
uniqueness of this business sector. In this paper he define the conceptual framework for
studying this problem in insurance and he propose a methodology to address it. With his
methodological approach, it is possible to estimate the probability that a household with
more than one insurance contract (policy) in the same insurance company (cross-buying)
would cancel all policies simultaneously. For those who cancel part of their policies, but
not all of them, he estimate the time they are going to stay in the company after that first
policy cancellation, that is to say, the time the company has to try to retain a customer
who has just given them a clear signal of leaving the company. He consider the subset of
customers with more than one policy before the first cancellation, 77,337 households. He
firstly apply a logistic regression model to this subset in order to estimate the probability
of a total cancellation. Among those 77,337 households, 66,695 of them make a partial
cancellation. For that second subset of customers he estimate the customer lifetime
duration applying a Cox model This analysis includes two stages where he identify the
factors with a negative influence on the insurance customer loyalty: the estimation of the
probability that the customer would decide not to renew the contract (total cancellation)
and the study of the customer lifetime duration after the first time the client decides not to
renew the contract.

Govind Johri (2009) Customer satisfaction is a multi facted area on any public service
business.Customer satisfaction is most important criterion,which ecompasses quality
product and value addition through value evidence of what was implied to provide
ultimate customer satisfaction.Customer(dis) satisfaction is cascading in nature and
requires building relationship of confidence and trust with utmost commitment ,internal
accountability and a sense of care of customer.The insurer must try to get closure to
customer through 6c concept and by implementing customer experience management.
One of the biggest complaints in the area of service is ‘inconsistency’.Perticularly in
public sector like banking and insurance.The views of the customers vary significantly
because one customer’s experience differs generally from the next.Inconsistency may be
a result of different service experiences from the same staff complement.It could also be
inconsistency among staff where service by the field officers does not match with the
service received when one gets to the insurers office.

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 3. RATIONALE

The Contribution of service Industry in India Economy is 57.2% .And contribution of

Insurance sector is 3%.In service Industry customer satisfaction plays very importance
role to retain the customers.Customer satisfaction is a term frequently used in
marketing ,It is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction provides a leading indicator of
consumer purchase intentions and loyalty.

This study will have significant contribution to improve customer satisfaction level
of Life Insurance policy holder of LIC and Bajaj Allianz and also identify the critical area
of customer satisfaction in Insurance sector and provide suggestion for improvement.

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 4. OBJECTIVES

1. Comparative study of customer satisfaction level of policy holders of Lic and

Bajaj Allianz.

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 5. HYPOTHESIS

H01.There is no significant difference between customer satisfaction level of

policy holders of Lic and Bajaj Allianz.

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 6. RESEARCH METHODOLOGY

6.1 Design: This study will be discriptive in nature.

6.2 Population :-Population for this study will be the policy holder of LIC and
Bajaj Allainz who are resident of Indore city.

6.3 Sample:-

Sample Unit:-Individual Life Insurance policy holder of LIC and Bajaj

Allianz will be sample unit which will be formed by visiting the home

And office of policy holder.

Sample Element:-Policy holder of LIC and Bajaj Allianz who have

Atleast paid first premium for their policy.

Sample Size:-The sample size for the present study will be 150.

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LIC

Bajaj Allianz 75

Sample Method:-For collecting sample non probability convenience

Sampling method will be used.

6.4 Data Collection:-The proposed study would be conducted by collecting

Primary data from Life Insurance policy holder of LIC and Bajaj

Allianz primary data would be collected through structured

questionnaire.

6.5 Data Analysis:-For Hypothesis anova will be used.

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 7. BIBLIOGRAPHY

Ms.Babita(2011):Customer satisfaction on life Imsurance Services: An Emperical study

on LIC.VOL.2,Issue2. ISSN 2229-6883.

Dr. Masood H Siddiqui(July3,2010) : An Empirical Investigation :Measuring the

Customer Perceived Service Quality for Life Insurance Services. Journal of Targeting,
Measurement and Analysis for Marketing (2010) 18, 221–238. doi:10.1057/jt.2010.17;
published online 1 November 2010.

Guillén, M., Perch-Nielsen, J.; Pérez-Marín, A.M. (2009). “Cross-buying behaviour and
customer loyalty in the insurance sector”. EsicMarket, 132, pp. 77-105.

Rand, G. K. (2004).Diagnosis and Improvement of Service Quality in the Insurance

Industries of Greece and Kenya. Lancaster University Management School Working
Paper.

Govind Johri(2009) Customer Satisfaction In General Insurance Industry-7-A step

Toward Competitiveness:A Journal of risk and Insurance pravartak,vol.IV.