Determinants of Customer Satisfaction in Life Insurance Corporation of India-An Analysis

The purpose of Business is to create new customers and retain old customers. Customer's orientation is the ultimate key. L id initiated necessary measures for providing better services to the policy holders. Computerization and networking of operating units is also taken up for better access. New methods like single window, customer service centers have received wide recognition and acceptance among users. L id is still ahead of the curve in terms of focus, culture and commitment. The concept customer satisfaction is developed as a way to collect and manage customer service and sales information so the business would have more comprehensive view of their customer contact. Unlike other business, a customer of LICI is different in the sense that whenever a policyholder purchases a policy from the Corporation, he becomes the customer of the organization for a long period. Thus, the organization has to keep relationship with that customer not only for the collection of premium but also for change of address, change of nominee, sending premium notice, lapsation of policies, revival of policies, settlement of claims etc. It is rightly said that it costs seven times to acquire a new customer than to retain an old customer.