Service Quality Gaps in the Life Insurance Sector: A SERVQUAL Analysis of LIC

Service Quality Gaps in the Life Insurance Sector: A SERVQUAL Analysis of LIC

Harpal Kaur

Research Scholar, Desh Bhagat University, Mandi Gobindgarh

harpalpannupannu@gmail.com

Dr. Manpreet Kaur

Assistant Professor, Desh Bhagat University, Mandi Gobindgarh, dr.manpreet@deshbhagatuniversity.in

Abstract
This study evaluates the service quality of the Life Insurance Corporation of India (LIC) using the SERVQUAL model, focusing on five dimensions: Tangibility, Reliability, Responsiveness, Assurance, and Empathy. The research aims to identify gaps between customer expectations and perceptions, providing insights into LIC's strengths and areas for improvement. Data were collected from 150 respondents through structured questionnaires, and paired sample t-tests were used for analysis.

Findings reveal significant service quality gaps across all dimensions, with the highest gaps observed in Tangibility and Responsiveness, indicating the need for modernization of facilities and proactive customer service. Reliability and Assurance dimensions showed smaller gaps, suggesting LIC's competence in delivering dependable and secure services. The Empathy dimension highlighted the necessity of personalized attention and customer engagement.

The study concludes that while LIC performs relatively well in reliability and assurance, substantial improvements are required in tangibility and responsiveness to meet customer expectations effectively. These findings provide actionable insights for LIC to enhance customer satisfaction and maintain its competitive edge in the evolving insurance landscape.

Keywords:   Service Quality,  SERVQUAL Model, Life Insurance Corporation, (LIC),  Customer Expectations and Perceptions, Tangibility and Responsiveness,

Insurance Sector Analysis