Policyholder Behavior Towards Administrative Service of Lic of India with Reference to Madurai Division-

Abstract

The paper analyses the market share of insurance companies in the public and private sectors. Life Insurance Corporation (LIC) as the public sector lead insurer of long standing occupies major market share, though the proportion has been declining with the entry of private insurers in the recent years. It is proved beyond that the performance of LIC mainly leans on better service rendered to the policy holders rather than the large number of branches and a wide variety of products. The importance and the role played by services has been empirically examined in the case of LIC, Madurai district of Tamilnadu. A sample of 201 policy holders of LIC, Madurai division was taken for interviewing them on their preference towards various administrative services of Lie. The tools of analysis used are Mann Whitney test, Kruskal Wallis test, Friedman test and factor analysis. The analysis reveals the strengths and weaknesses in rendering services. Innovative approaches must be adopted by LIC to retain the existing policy holders and to attract new members. It is observed that greater satisfaction of policy holders can be achieved by offering anality and innovative services but not merely by increasing and widening the variety of products to sustain the growth of the insurance sector