Content area
Full Text
Consequent to the implementation of government policies on globalisation and liberalisation, the consumers have become more critical of the quality of service. Consumers are now aware of the alternatives available in relation to services and the provider organisations. Consumer expectations are rising and the provider organisations should be aware of these expectations. An attempt has been made in this paper to quantitatively study the levels of the dimensions of service quality and its relation to the level of customer satisfaction. This pilot study is confined to only insurance companies to illustrate the methodology.
INTRODUCTION
Prior to 1956, there were about 245 insurance companies, which operated in India. The insurance coverage was mostly confined to life and vehicles. The Government of India felt that a strict Government Control of Insurance industry is required and nationalised the insurance industry in 1956. Life Insurance Company of India (LIC) was formed in September 1956 by an Act of Parliament vis., the LIC Act with a capital contribution of Rs. 50 million from the Government of India (Palande et al, 2003). Over the years the Insurance business has grown enormously and collected funds both in linked and non-linked sectors. In recent times new private players have come into existence. Indian Economy is among the most under insured markets in terms of spread and penetration leaving a huge untapped market penetration, with the insured population being only 70 million people (Palande, Shah and Lunawat, 2003). Indian insurance industry ranks 51 across the world in terms of penetration. The Indian Life Insurance premium is a mere 1.5 percent of the GDP, compared to 11.6 percent in South Korea (Palande, Shah and Lunawat, 2003). It is felt that the changing demographic profile of Indian population, growth of the economy, change over to new technologies, etc. are likely to push the demand for the insurance cover further.
Since the opening of the insurance market to private players, the Government has granted as on October 23, 2000 approvals to 20 new players. Out of these 20, 12 are linked and 8 are non-linked insurance businesses. Most of these are in the form of joint ventures between established players. The growth rate of life insurance in the last decade was highest during 2001-02. This...