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2 Day National Seminar

on
Tripura in 21st Century Development Experience

Topic:
The Concept of Service Quality Dimensions in Life
Insurance Sector with Special Focus on Tripura

SHYAMASREE SAHA
1 Research Scholar, Department of Humanities and Social Science, NIT Agartala

SUBHAYAN CHAKRABORTY
Guest Faculty, Department of Business Management, Tripura University and
Faculty of Management Studies, ICFAI University
Tripura in 21st Century Development Experience 5/30/17
2 Introduction:
Over the past two-three decades, it is the service sector that has
been playing a prevailing role in alleviating the economy of India.
In fact it is the service sector that accounted for almost 66.1% of
the Gross domestic Product (GDP) in the Financial Year 2013.
One of the major challenges the Service sector faces is on how to
deliver and ensure quality of service consistently, it becomes
much more demanding to uphold and endure the same level of
quality of service every time a service has been rendered. As a
result maintaining service quality in Indian Insurance sector is of
colossal significance.
Our very own state, Tripura is not immune from this. It has been
observed that the inhabitants of this particular region are being
waylaid and sometimes even ignored by many of the service
providers.
Tripura in 21st Century Development Experience 5/30/17
3 Service Industries are
characterized by:
Intangibility
Inventory (Perishability)
Inseparability
Inconsistency (Variability)

Tripura in 21st Century Development Experience 5/30/17


4 Service Quality: A Concept

Gronroos (1984) defined service quality as the


outcome of an evaluation process where the consumer
compares his expectations with the service he
perceives, he has received i.e. he puts the perceived
service against the expected service. Hence according
to Gronroos, Service Quality is dependent on two
variables: expected service and perceived service.

Tripura in 21st Century Development Experience 5/30/17


Factors responsible for
5
attainment of service quality
Abby Gobadian, Simon Speller and Matthew
Jones (1993) pointed out some factors which
are required for attainment of service
quality. They are:
Market & customer focus
Empowerment of Frontline staf
Well trained and motivated staf
A clear service quality vision
Tripura in 21st Century Development Experience 5/30/17
Service Quality Dimensions in Indian Life
6 Insurance Sector with Special Focus on Tripura
Indian
consumers have
diferent needs,
demands and
Life Insurance is expectations
one of the according to
fastest growing Indian Life their social and
Most of the Keeping the
sector in India insurance cultural lifestyle.
Indians are not customers of
since 2000 as industry with So this makes
well aware of Tripura in mind,
Government more than 36 the various
the terms and these
allowed Private Crore policies, is insurance
conditions and dimensions
players and FDI the largest in service
also about the articulates the
up to 26% the world. providers to
implications service
which recently However, have diferent
they have to providers where
the Cabinet despite such strategies and
encounter when to focus first and
Ministry of India statistics, India approaches to
they avail Life then gradually
approved a continues to be tailor their
Insurance. carry on further.
proposal to underinsured. services
increase it to according to the
49%. needs of
diferent
consumers in
the insurance
market.

Tripura in 21st Century Development Experience 5/30/17


7 Questions: % of respondent from Tripura
1. Insurance is a compensation for 80 % of insured household (Yes)
loss of life?

2. Are you dependent on agents for 90% of household (Yes)


information?

3. Insurance is relevant? Almost 100 % of insured and 57 % of


uninsured household (Yes)

4. Insurance is both a savings and Almost 100 % of insured household


protection tool? (Yes)

5. Insurance is too expensive? 20 % of household (Yes)


6. Level of awareness among 92 % of uninsured household (Aware)
uninsured household:

7. No idea regarding insurance: 13 % of household

Source: Pre survey report of IRDAI, 2011


Tripura in 21st Century Development Experience 5/30/17
Dimensions of Service Quality
8 Parasuraman et al in the article A Conceptual Model of
Service Quality and its implications in Future Research
(1985) came up with 10 determinants of the service quality
which are namely,
Reliability
Responsiveness
Competence
Access
Courtesy
Communication
Credibility
Security
Understanding or knowing the customer
Tangibles

Tripura in 21st Century Development Experience 5/30/17


RATER Model of Service Quality:
9
Reliability: Ability to perform the promised service
dependably and accurately

Assurance: Employees knowledge and courtesy and


their ability to inspire trust and confidence

Tangibles: Appearance of physical facilities, equipment,


personnel and written materials

Empathy: Caring, individualized attention given to


customers.

Responsiveness: Willingness to help customers and


provide prompt service

Tripura in 21st Century Development Experience 5/30/17


The five dimensions of service quality
10
has been prioritizes as such for Tripuras
perspective:
Empathy

Reliability

Assurance

Responsiveness

Tangibles
Tripura in 21st Century Development Experience 5/30/17
Empathy: Empathy in Service Quality Dimension
11 denotes to how the company cares and gives
individualized attention to their customers, to make
the customers feeling extra valued and special.
Though this dimension is being considered as the fifth
dimension in many text books and articles this
dimension is of vast prominence to Indian Life
Insurance customers. Indian customers are generally
not so familiarized with the terms, conditions and risk
factors usually associated with the Life Insurance
policy. And they have a very low risk tolerance. So if
they feel that they are getting individualized and
quality attention, they are being properly attended
there is a very big chance that they are going to
Tripura in 21st Century Development Experience 5/30/17

business there.
12 2. Reliability: Reliability as a Service Quality
Dimension refers to how the company is
performing and completing the service it has
promised, quality and accuracy within the given set
requirements between the company and the
customer. Most of the Indian customers are not so
good risk takers. The customers trust the public
sector insurance companies since these insurance
companies have existed in the market for a longer
period than the private sector insurance
companies. So, the Life Insurance Company must
have a strong good will and a reputation of having
a commendable record of settling claims with
Tripura in 21st Century Development Experience 5/30/17

honesty and integrity.


13 3. Assurance: Assurance in Service Quality Dimension
denotes to the company's employees. In case of Indian
Life Insurance Company, it is the Insurance Agent in
most of the case who is going to interact with the
customer, make him aware of the various policies
provided by the Insurance company, tell the customer
about the benefits he is going to get once he purchases
the policy and also about the future inferences
associated with the policy. This means that an insurance
agent shoulders on a great responsibility. Moreover they
have to be taught on how to handle and deal with
various customers so that they dont end up having a
disgruntled customer.
Tripura in 21st Century Development Experience 5/30/17
4. Responsiveness: Responsiveness in Service
14
Quality Dimension signifies the willingness of the
company to help its customers in providing them with
a good, quality and fast service. This is also a very
important service quality dimension because every
customer feels more valued if their queries and
complaints are properly attended and dealt with care.
The more promptly and commendably the company
can settle such claims the more number of satisfied
customers it is going to have in the end. So the
company must pay strong attention in this
Responsiveness dimension of Service Quality.

Tripura in 21st Century Development Experience 5/30/17


15
5. Tangibles: Tangible in Service Quality
Dimension refers to the appearance of the physical
surroundings and facilities, equipment, personnel
and the way of communication of the Service
Provider. In other words, the tangible dimension is
about creating first hand impressions. Ultimately it
is the rest of the factors other than tangibility that
matters more in providing and ensuring quality of
service in case of Indian Life Insurance Sector in
Tripura.

Tripura in 21st Century Development Experience 5/30/17


16 Managerial Implications
The study implies that the five dimension of service quality
play an influential role in creating perception in the minds of
the customers regarding the quality of service they are
going to experience. In short these five dimensions of
service quality help in creating customer expectation. If the
Life Insurance Company can concentrate their focus on
these five dimensions and develop a business plan
accordingly they will be very much successful in delivering a
good quality of service. And this may eventually increase
customers satisfaction which is very much desirable. The
Life Insurance Company must weight each and every
dimension of service quality while dealing with the existing
and potential customers.

Tripura in 21st Century Development Experience 5/30/17


17 Conclusion:

One of the significant suppositions that can be drawn from this


research paper is that it is not at all possible to generalize the
relative importance of the determinants or dimensions of service
quality. Service quality should be used as a strategic tool to get a
competitive advantage over the competitors. Since diferent
services are structures and performed in diferent contexts and both
the service providers and receivers acknowledge them at diferent
levels of variables of concern it becomes almost irrefutable that the
dimensions of service quality for customers would vary from one
service to another. Yet after thorough studying and analysis of
diferent literary papers and publications, the dimensions of service
quality in Life Insurance Industry in Tripura have been enlisted
according to their relative importance in that area.

Tripura in 21st Century Development Experience 5/30/17


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18
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Tripura in 21st Century Development Experience 5/30/17
21

THANK YOU FOR YOUR KIND ATTENTION!

Tripura in 21st Century Development Experience 5/30/17

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