Impact of quality of service and effectiveness of manpower on the performance of Life Insurance Corporation of India

Partha Sarathi Choudhuri

Research Scholar, Department of Business Administration, The University of Burdwan, West Bengal, India

*Corresponding Author E-mail: partha.choudhuri@gmail.com

ABSTRACT:

Organizational performance depends on a number of factors where over time these factors varies from one sector to another sector, one nation to another nation and one culture to another culture. Like any other sector, in life insurance sector also customers are directly related with their service providers in different ways. Empirical studies indicated that the proper execution of the performance of any organization is generally influenced by its quality of manpower in the course of their effective works and fulfilling customers’ needs or wishes through providing quality of services. Observing the last five years’ (i.e. 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12) performance of Life Insurance Corporation of India in Burdwan district in terms of the number of employees, agents, policyholders, new policies, premium income (single premium income, first year premium income and renewal premium income), individual death claims, grievances and operating expenses ratio, the researcher in this paper tried to investigate whether quality of service and effectiveness of manpower have any impact on the performance of Life Insurance Corporation of India or not.

KEY WORDS: Effectiveness of manpower, Insurance, Performance, Quality of service.

INTRODUCTION:

Indian insurance sector is one of the rapid developing insurance sectors in the present world and it has a significant impact in the country’s economy. After liberalization, along with one and only public life insurance company namely Life Insurance Corporation of India (LICI), a number of private life insurance companies are presently operating in the Indian life insurance market and providing varieties of services and products to their customers. In 21^st century, customers are fully aware of their needs and requirements, expectations, information technology, information technology enabled services and always want to get quality of services as well as efficient and effective works from their insurers. Observing the alarming situation, the insurance companies are now trying to get competitive advantage over their competitors through providing better quality of services to their customers with the help of their knowledgeable and technology savvy manpower and the Life Insurance Corporation of India is no exception to this.

From the very early age of the business, the largest public life insurance company LICI has not only taken a number of initiatives to improve the knowledge and skills of their employees but also adopted various approaches to provide a better quality of services to their customers in order to meet the expectations of the customers. In order to survive in the future and to achieve maximum growth in the present competitive life insurance market, LIC is now dedicatedly involved in the development of new strategies to improve their performance in efficient manner. To examine whether quality of service and effectiveness of manpower have any impact on the performance of Life Insurance Corporation of India or not, the current study has been conducted on the life insurance customers of all the 17 branches of the LICI located in Burdwan district, West Bengal.

REVIEW OF LITERATURE:

The concept of comparison of service performance with some standard by the customers has been emphasized in both the literature of service quality and satisfaction (Spreng and MacKoy, 1996). About a service the two evaluative judgments made by the customers are ‘Is it of good quality?’ and ‘Am I satisfied?’ (Gabbott and Hogg, 1998). Baker and Crompton (2000) stated that quality is an evaluation of “the attributes of a service which are primarily controlled by a supplier” where according to Meuter et al. (2000), during the service delivery, recovery and personalization of service, the noteworthy relationship of customer-employee makes customers’ satisfaction. Khatibi et al. (2002) indicated that customer satisfaction very much depends on the performance of the employee when they provide service to the customer. Customers’ expectation is the reflection of expected performance (Churchill and Surprenant, 1982) where customers’ perceptions is very much influenced by their past experience, or lack thereof, about a particular service product (O’Neill and Palmer, 2003). Payne (1995) suggested that service companies should keep in mind the importance of service quality variables such as reliability, responsiveness, assurance, empathy and tangibles at the time of consideration of the levels of performance in setting objectives of the customer service. Luarn et al. (2003) stated that in life insurance industry, the degree of success in the implementation of enterprise mobilization is positively correlated to the management performance of external aspects like providing increased customer satisfaction. Though the study of Choudhuri (2013) pointed out that in the last visit to the LIC branch almost all the customers were happy about the services offered by the LIC but in the insurance industry, the widespread customer dissatisfaction stemming from poor service design and delivery is confirmed by the studies of Wells and Stafford (1995); Cooper and Frank’s (2001) the Chartered Property Casualty Underwriters (CPCU) longitudinal studies and Friedman’s (2001a, 2001b) the Quality Insurance Congress (QIC) as well as the Risk and Insurance Management Society (RIMS). From the study of the National Association of Life Underwriters, the financial stability of the company, reputation of the insurer, agent integrity and the quality of information and guidance from the agent were extracted as the four important factors of the insurance quality (King, 1992). Crosby and Cowles (1986); Clow and Vorhies (1993); Richard and Allaway (1993) specified that in 80% of the cases, an insurance policy is almost always sold by an agent who is the customer’s only contact. Joseph et al. (2003) pointed out that insurance agents should constantly monitor the level of satisfaction among his / her customers to keep themselves close to the customers for fulfilling their needs. According to Pointek (1992), customers want more responsive agents with better contact, personalized communications from the insurer, accurate transactions, and quickly solved problems which were identified in customer surveys by Prudential. Berry (1995) pointed out that in order to reduce risks and uncertainties, customers seek long-term relationships with their insurance companies and respective agents because of the amount of money that is typically invested in an insurance policy. Thus, Harrison (2003) revealed that the industry considers that after the initial purchase, understanding customers’ behavior will help the insurers to maintain longer customer-insurer relations.

METHODOLOGY:

The current study was carried out based on the both primary and secondary data sources. In order to observe the branch wise performance of Life Insurance Corporation in Burdwan district in last five years (i.e. 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12), initially researcher collected secondary data from all the 17 LICI branches spread over the district of Burdwan on the basis of different parameters like number of employees, number of agents, number of policyholders, number of new policies, premium income (single premium income, first year premium income and renewal premium income), individual death claims, grievances and the operating expenses ratio. For the purpose of the study, researcher has also developed following null and alternative hypothesis:

H₀: Performance of LICI is independent of quality of service and effectiveness of manpower.

H_a: Performance of LICI is dependent of quality of service and effectiveness of manpower.

To collect the primary data, initial questionnaire was developed as a survey instrument where along with the other items, performance of the insurer against the clients’ ideal services, quality of services offered by the insurer and the effectiveness of its manpower were included. The pilot study was conducted in the district town Burdwan where researcher randomly selected 30 customers. After explaining objectives and purpose of the study, researcher tried to get valuable feedback from these customers. Based on this pilot study, the preliminary analysis established the internal consistency of the items within questionnaire and gave the confirmation of validity and reliability of final survey instrument. The structure of the questionnaire is both open-ended and close-ended and consisted seven point Likert scale ranging from 1-strongly disagree to 7-strongly agree. After successfully completion of the pilot study, considering different demographic profile of the respondents and using random sampling technique, selecting all the 17 LIC branches located in Burdwan district, total 350 questionnaires were distributed among the customers where 289 customers were agreed to give response and finally obtained 221 usable responses which were considered as the sample size for this study. Here, statistical package SPSS 16 was used to perform the analyses.

RESULTS AND DISCUSSIONS:

To observe the performance of Life Insurance Corporation of India (LICI), first of all the branch wise information about the total number of LIC employees for the last five years is given below:

Table 1: Number of Employees

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	71	68	67	68	70
Burdwan Br. 2	53	55	57	56	57
Burdwan Br. 3	30	29	30	31	31
Kalna	56	53	55	52	56
Katwa	51	52	52	53	55
Memari	52	52	54	53	50
Panagarh	37	36	37	36	37
Raniganj	49	49	50	48	51
Asansol CAB	25	25	25	24	23
Asansol Br. 1	62	60	57	55	56
Asansol Br. 2	65	60	57	54	54
Kulti	33	31	32	33	35
Ushagram	40	41	39	39	42
Chittaranjan	43	42	42	41	44
Durgapur Br. 1	68	63	61	55	52
Durgapur Br. 2	56	59	55	55	57
Ukhra	56	54	52	53	53

Source: LICI

From the above table it is easy to understand that among all 17 branches from 2007-08 to 2011-12 Burdwan Branch - 1 has highest number of employees (71, 68, 67, 68 and 70 in respective years). In 2011-12, LIC has total 823 employees where in 2007-08, LIC had total 847 employees in Burdwan district i.e. 2.83% employees has decreased in last five years.

The branch wise information about the total number of LIC agents for the last five years is given below:

Table 2: Number of Agents

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	893	966	1002	956	961
Burdwan Br. 2	680	767	802	820	790
Burdwan Br. 3	434	427	419	397	394
Kalna	776	904	922	919	835
Katwa	1023	1181	1183	1122	1136
Memari	707	734	737	691	691
Panagarh	319	346	373	476	425
Raniganj	631	738	738	721	660
Asansol CAB	189	221	240	257	195
Asansol Br. 1	458	471	476	472	445
Asansol Br. 2	438	453	466	437	435
Kulti	283	331	375	351	325
Ushagram	451	492	496	419	458
Chittaranjan	442	539	548	483	506
Durgapur Br. 1	582	644	686	643	731
Durgapur Br. 2	664	679	715	709	691
Ukhra	648	756	745	690	668

Source: LICI

From Table 2 it is easy to specify that among all 17 branches from 2007-08 to 2011-12 Katwa Branch has highest number of agents (1023, 1181, 1183, 1122 and 1136 in respective years).

The branch wise information about the total number of LIC policyholders for the last five years is given below:

Table 3: Number of Policyholders

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	338337	362955	391243	414767	435502
Burdwan Br. 2	279399	308524	339331	363236	383440
Burdwan Br. 3	54471	64673	76258	88269	98965
Kalna	295913	324536	358288	387247	410684
Katwa	318261	347614	383012	415244	443991
Memari	287654	309125	331876	352884	371739
Panagarh	128352	142695	159802	174596	187702
Raniganj	12004	14568	15670	15823	14149
Asansol CAB	3280	4496	5387	5361	4057
Asansol Br. 1	7406	9403	10748	10751	9663
Asansol Br. 2	5201	7335	8552	8132	6570
Kulti	3282	5499	6383	5505	5224
Ushagram	5402	7867	10396	9800	8717
Chittaranjan	6830	9731	12346	11031	9196
Durgapur Br. 1	11896	13279	16638	17058	16599
Durgapur Br. 2	10271	12782	16010	14972	13891
Ukhra	11095	14386	17713	16738	14888

Source: LICI

Table 3 indicates that among all 17 branches from 2007-08 to 2009-10 Burdwan Branch 1 had highest number of policyholders (338337, 362955 and 391243 in respective years) whereas in 2010-11 and 2011-12, Katwa branch has the highest number of policyholders (415244 and 443991 in respective years).

The branch wise information about the total number of new LIC policies for the last five years is given below:

Table 4: Number of New Policies

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	25263	24275	27885	23180	20594
Burdwan Br. 2	33372	29134	30782	23852	20232
Burdwan Br. 3	9607	10247	11618	12001	10702
Kalna	27678	28588	33696	28869	23455
Katwa	28671	29316	35325	32175	28747
Memari	22102	21396	22674	20945	18941
Panagarh	13782	14281	17058	14760	13134
Raniganj	21604	21757	22274	21438	17964
Asansol CAB	8136	6964	8285	7225	5209
Asansol Br. 1	18210	15233	16568	14729	12374
Asansol Br. 2	11105	11112	12254	10960	8457
Kulti	7921	9006	10365	8229	7390
Ushagram	11728	12182	14983	13229	11278
Chittaranjan	14715	15020	18526	15027	11854
Durgapur Br. 1	18873	18817	22502	22283	21129
Durgapur Br. 2	16721	17647	21333	18877	14911
Ukhra	19076	20914	24658	22425	18904

Source: LICI

Table 4 shows that among all 17 branches though in 2007-08 Burdwan Branch 2 issued highest number of new LIC policies (33372) but from 2008-09 to 2011-12 Katwa branch has issued highest number of new LIC policies (29316, 35325, 32175 and 28747 in respective years).

The branch wise information about the single premium income (which is collected once in the policy at commencement of the policy) in terms of Rs. crore for the last five years is given below:

Table 5: Single Premium Income

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	11.17	10.60	23.09	18.97	10.97
Burdwan Br. 2	0.14	0.79	0.15	1.79	2.71
Burdwan Br. 3	2.31	3.02	5.35	6.26	4.80
Kalna	8.73	10.78	0.19	4.02	1.52
Katwa	2.21	2.38	2.57	2.76	4.14
Memari	9.32	8.76	9.88	5.62	2.69
Panagarh	6.9	2.67	11.28	10.05	4.59
Raniganj	*	*	1.67	1.75	4.63
Asansol CAB	*	*	1.07	1.15	2.54
Asansol Br. 1	*	*	2.38	1.61	7.33
Asansol Br. 2	*	*	1.51	1.98	3.78
Kulti	*	*	2.68	1.09	1.86
Ushagram	*	*	0.95	1.21	3.20
Chittaranjan	*	*	1.08	1.15	2.68
Durgapur Br. 1	*	*	2.14	2.86	8.94
Durgapur Br. 2	*	*	1.69	1.77	5.50
Ukhra	*	*	0.92	1.36	4.23

* Information is not available due to transition from one operating system to another

Source : LICI

Referring to Table 5 it may be noted that among all 17 branches though in 2008-09 Kalna branch had the highest single premium income (10.78 cr.) but in 2007-08 and from 2009-10 to 2011-12 Burdwan Branch 1 has recorded highest single premium income (11.17 cr., 23.09 cr., 18.97 cr. and 10.97 cr. in respective years).

The branch wise information about the first year premium income (which is the total of risk premium and other first year premium) in terms of Rs. crore for the last five years is given below:

Table 6: First Year Premium Income

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	14.49	15.08	17.15	17.77	19.42
Burdwan Br. 2	6.77	9.24	6.77	11.76	5.80
Burdwan Br. 3	4.56	4.76	5.78	7.38	8.42
Kalna	6.54	8.40	13.55	13.44	15.81
Katwa	10.54	12.02	13.70	15.61	20.11
Memari	5.92	6.87	10.67	13.12	13.34
Panagarh	2.59	2.69	10.6	11.90	14.10
Raniganj	*	*	5.37	5.62	6.13
Asansol CAB	*	*	1.12	1.04	2.36
Asansol Br. 1	*	*	3.61	3.89	7.89
Asansol Br. 2	*	*	2.95	2.79	5.83
Kulti	*	*	1.94	2.10	3.81
Ushagram	*	*	2.87	2.96	3.93
Chittaranjan	*	*	4.21	4.48	6.56
Durgapur Br. 1	*	*	5.06	8.92	11.99
Durgapur Br. 2	*	*	5.18	6.39	10.65
Ukhra	*	*	7.67	7.93	11.62

* Information is not available due to transition from one operating system to another

Source: LICI

It is pointed out from Table 6 that among all 17 branches from 2007-08 to 2010-11 Burdwan Branch 1 had recorded the highest first year premium income (14.49 cr., 15.08 cr., 17.15 cr. and 17.77 cr. in respective years) whereas in 2011-12 Katwa branch has recorded the highest first year premium income (20.11 cr.).

The branch wise information about the renewal premium income (premium collected which are due from second year onwards) in terms of Rs. crore for the last five years is given below:

Table 7: Renewal Premium Income

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	62.48	67.19	70.73	77.65	79.98
Burdwan Br. 2	43.43	47.57	43.43	49.11	58.84
Burdwan Br. 3	10.83	11.42	14.05	15.87	16.72
Kalna	41.96	45.14	49.66	62.57	61.39
Katwa	43.76	49.89	56.82	64.71	66.65
Memari	42.54	48.67	48.49	60.77	60.39
Panagarh	15.50	15.56	20.12	21.90	24.06
Raniganj	*	*	58.18	62.62	70.63
Asansol CAB	*	*	14.45	14.76	15.42
Asansol Br. 1	*	*	48.01	57.52	55.73
Asansol Br. 2	*	*	36.74	40.67	39.43
Kulti	*	*	17.92	20.99	21.27
Ushagram	*	*	28.48	30.46	33.55
Chittaranjan	*	*	27.94	34.45	36.87
Durgapur Br. 1	*	*	68.01	75.66	76.57
Durgapur Br. 2	*	*	63.44	72.69	81.04
Ukhra	*	*	58.48	66.83	70.89

* Information is not available due to transition from one operating system to another

Source: LICI

From Table 7 it is clear to understand that among all 17 branches from 2007-08 to 2010-11 Burdwan Branch 1 had recorded the highest renewal premium income (62.48 cr., 67.19 cr., 70.73 cr. and 77.65 cr. in respective years) whereas in 2011-12 Durgapur Branch 2 has recorded the highest renewal premium income (81.04 cr.).

The branch wise information about the total individual death claims in LIC for the last five years is given below:

Table 8: Individual Death Claims

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	489	479	535	565	579
Burdwan Br. 2	319	389	405	557	529
Burdwan Br. 3	52	77	84	103	99
Kalna	363	486	390	470	581
Katwa	415	422	429	615	618
Memari	321	364	347	516	483
Panagarh	120	144	241	208	212
Raniganj	476	473	578	494	577
Asansol CAB	143	115	116	104	166
Asansol Br. 1	554	443	497	528	524
Asansol Br. 2	325	329	315	323	313
Kulti	251	177	200	223	270
Ushagram	268	199	250	269	313
Chittaranjan	222	283	380	390	366
Durgapur Br. 1	559	436	507	612	638
Durgapur Br. 2	384	348	358	411	468
Ukhra	709	838	637	812	694

Source: LICI

Table 8 indicates that among all 17 branches from 2007-08 to 2011-12 highest individual death claims in LIC has taken placed in Ukhra branch (709, 838, 637, 812 and 694 in respective years).

The branch wise information about the total number of complaints received as well as resolved by the LIC for the last five years is given below:

Table 9: Number of Complaints Received and Resolved

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	0	0	0	0	23
Burdwan Br. 2	2	1	2	1	13
Burdwan Br. 3	1	2	1	3	8
Kalna	*	0	0	0	5
Katwa	0	0	3	2	13
Memari	3	5	2	4	10
Panagarh	0	0	0	0	8
Raniganj	14	9	7	6	8
Asansol CAB	6	6	2	2	7
Asansol Br. 1	9	12	23	20	8
Asansol Br. 2	17	13	18	20	12
Kulti	5	3	4	2	6
Ushagram	4	4	1	4	4
Chittaranjan	4	8	3	1	1
Durgapur Br. 1	8	8	12	11	4
Durgapur Br. 2	3	15	10	7	3
Ukhra	14	21	22	18	6

* Information is not available

Source : LICI

Table 9 illustrates that in the year 2007-08 Asansol Branch 2 received as well as resolved highest number of complaints (17) whereas in 2008-09 Ukhra branch, in 2009-10 Asansol Branch 1, in 2010-11 Asansol Branch 1 and 2 and in 2011-12 Burdwan Branch 1 had received as well as resolved highest number of complaints (21, 23, 20 and 23 in respective years). Figure ‘0’ means no complaint was received by the branch i.e. disposal and pending results ware also ‘0’. So, above table indicates that there was no pending complaint at the year ends.

The branch wise information about the operating expenses ratio which is the ratio of operating expenses to the premium underwritten by the LIC for the last five years is given in the following table in form of percentage:

Table 10: Operating Expenses Ratio

Branch Name	2007-08	2008-09	2009-10	2010-11	2011-12
Burdwan Br. 1	11.23	13.45	12.83	13.27	12.75
Burdwan Br. 2	13.72	13.63	14.67	20.28	15.91
Burdwan Br. 3	15	16.24	14.73	20.08	20
Kalna	13.95	12.69	8.40	9.57	8.49
Katwa	13.25	14.19	15.11	17.08	16.19
Memari	15.24	15.68	15.5	14.36	16.3
Panagarh	15.89	16.01	17.10	22.57	18.38
Raniganj	*	*	13.78	17.13	14.85
Asansol CAB	*	*	15.71	20.73	17.82
Asansol Br. 1	*	*	13.46	15.62	13.75
Asansol Br. 2	*	*	13.81	17.69	14.96
Kulti	*	*	15.11	20.40	16.70
Ushagram	*	*	15.79	22.55	16.66
Chittaranjan	*	*	18.31	18.60	16.07
Durgapur Br. 1	*	*	13.79	16.29	14.71
Durgapur Br. 2	*	*	13.02	15.20	13.20
Ukhra	*	*	14.16	16.35	14.17

* Information is not available due to transition from one operating system to another

Source: LICI

From Table 10 it is simple to understand that in the year 2007-08, 2010-11 and in 2011-12 Panagarh branch recorded the highest operating expenses ratio (15.89%, 22.57% and 18.38% in respective years) whereas in 2008-09 Burdwan Br. 3 and in 2009-10 Chittaranjan branch had highest operating expenses ratio (16.24% and 18.31% in respective years).

The demographic data of the customers which was collected through cross-sectional survey for the purpose of the study is now given below:

Table 11: Demographic profile of the customers

Demographic Variable	Demographic Characteristics	Frequency
Gender	Male	192 ( 86.9 )
	Female	29 ( 13.1 )
Age	≤ 30 years	51 ( 23.1 )
	31 - 40 years	66 ( 29.9 )
	41 - 50 years	38 ( 17.2 )
	51 - 60 years	49 ( 22.2 )
	≥ 60 years	17 ( 7.7 )
Income	≤ Rs.14999.00	30 ( 13.6 )
	Rs.15000.00 -Rs.24999.00	102 ( 46.2 )
	Rs.25000.00 -Rs.44999.00	70 ( 31.7 )
	≥ Rs.45000.00	19 ( 8.6 )
Occupation	Salaried	174 ( 78.7 )
	Business	15 ( 6.8 )
	Professional	11 ( 5.0 )
	Retired	18 ( 8.1 )
	Housewife	3 ( 1.4 )
Educational Qualifications	High school	14 ( 6.3 )
	Graduate	56 ( 25.3 )
	Post-graduate	38 ( 17.2 )
	Professional	98 ( 44.3 )
	Any other	15 ( 6.8 )
Locality of Living	Center of the town	144 ( 65.2 )
	Outskirts of the town	30 ( 13.6 )
	Rural areas adjoining town	47 ( 21.3 )
Modern Aids	Mobile Phone	64 ( 29.0 )
	Combination of mobile and internet	157 ( 71.0 )

* Percentage (%) in parenthesis

To understand the strength of the relationship of performance of LICI, quality of service and effectiveness of manpower, the researcher has performed multiple regression analysis where the prediction of the dependent variable would be done by the two independent variables (predictors). Here, performance of LICI was considered as a dependent variable and quality of service as well as effectiveness of manpower of LICI were considered as the independent variables for the study. The results of regression analysis are presented in the following tables:

Table 12: Variables Entered/Removed^b

Model	Variables Entered	Variables Removed	Method
1	SERVICE QUALITY, EFFECTIVENESSª	.	Enter

a. All requested variables entered.

b. Dependent Variable: PERFORMANCE

Table 13: Model Summary^b

Model	R	R Square	Adjusted R Square	Std. Error of the Estimate
1	.720ª	.518	.514	.84865

a. Predictors: (Constant), SERVICE QUALITY, EFFECTIVENESS

b. Dependent Variable: PERFORMANCE

Table 14: Result of ANOVA

ANOVA^b

Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	168.706	2	84.353	117.123	.000ª
	Residual	157.005	218	.720
	Total	325.710	220

a. Predictors: (Constant), SERVICE QUALITY, EFFECTIVENESS

b. Dependent Variable: PERFORMANCE

Table 15: Regression Coefficients

Coefficientsª

Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	.557	.345		1.614	.008
	SERVICE QUALITY	.292	.075	.185	3.910	.000
	EFFECTIVENESS	.680	.048	.672	14.163	.000

a. Dependent Variable: PERFORMANCE

The result of the regression analysis indicates that the dependent variable performance is strongly related with the independent variables service quality and effectiveness, i.e., prediction of dependent variable has successfully done by the two independent variables. The value of R Square = 0.518 in Table 13 indicates the significance of the study. In ANOVA result of Table 14, the value of F = 117.123, p≤0.001 established the significance of the relationship among the performance of LICI, quality of services offered by the LIC and effectiveness of its manpower. The result of regression coefficients are shown in Table 15 where the standardized coefficient β and corresponding t-value of service quality are β = 0.185, t = 3.910, p<0.001 and the standardized coefficient β and corresponding t-value of effectiveness of manpower are β = 0.672, t = 14.163, p<0.001 which also proved that there exists positive and strong relationship among the one dependent variable (performance of LICI) and two independent variables (quality of service and effectiveness of manpower) of the study. So, at present study the null hypothesis is rejected and alternative hypothesis “Performance of LICI is dependent of quality of service and effectiveness of manpower” is accepted.

CONCLUSIONS:

The present study not only describes the perfect positive linear relationship of dependent and independent variables of the study but also reveals the dependency of LICI’s performance against the clients’ ideal services on the quality of services offered by the LICI and the effectiveness of its manpower. In another way, it can be explained that service quality and effectiveness of manpower of Life Insurance Corporation of India play a major role in its performance in Burdwan district. As quality of service done by the effective manpower has a significant impact on the performance of the life insurance company so it is expected that realizing the practical situation Life Insurance Corporation of India should try to arrange more and more need based training programs on a regular basis for their employees and agents so that understanding the specific needs and requirements of the customers they can provide their services accordingly to them in an efficient, effective and well behaved way through which Life Insurance Corporation of India would be able to continue to contribute a major share in the present competitive life insurance market.

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Received on 06.01.2014 Modified on 24.01.2014

Accepted on 12.02.2014 © A&V Publication all right reserved

Asian J. Management 5(1): January–March, 2014 page 97-105