CHAPTER 1

1. Introduction

1.1 Background of the Study

The Global insurance market is categorized into two life insurance & general insurance.
According to McKinsey, North America & Developing Asia-Pacific contributed about 70
percent of the total premium within this decade with North America leading in the market.

Premium Volume by Region (General Inusrance)

58.25%
60.00%
47.98%
50.00% 38.53%
40.00%
23.86%
30.00%

20.00%

10.00%

0.00%
Advanced Emerging Asia-Pacific India
Markets Markets

Figure 1: Premium Volume by Region

(Source: IRDA Annual Report 2021-22)
Fig 1 depicts the volume of the premiums around the regions for the general insurance where
the large sit was dominated by the advance markets at 52.25 % followed by the emerging
markets at 47.98%.
The overall global insurance market saw exponential growth from $5,300 billion in
2021 to $ 5,800 billion in 2022 amid covid -19 and Russia Ukraine war. The war also led to
increase in insurance prices. Asia is expected to have a 67 percent increase in insurance where
China would be dominated by 25 percent followed by India by 20 percent (Global Insurance
Report 2023, McKinsey & Co)

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Technology in Insurance:
The insurance industry saw a huge technological advancement before covid -19 with the
implementation of AI (Artificial Intelligence) and modernized processing platforms (Santenac
Isabelle, 2022 Global insurance Outlook)

Key Trends in Insurance Industry:

According to an article published by WNS Global Services they have listed out the key trends
in the current insurance market i.e.,
1. New Models, Personalised Products
2. Artificial Intilligience & Automation for Faster Claims
3. Advance Analytics
4. Insures Tech Partnerships

Global Motor Insurance:

The Global Motor insurance market has significant growth with a market share of 42 percent.
It is also the largest non-life insurance in Europe as the demand for motor insurance is high
having a motor insurance is a legal requirement & the rising number of accidents also plays a
vital role. The global motor insurance market is categorized based on liability coverage, and
collisions.
The global motor insurance market is heavily dominated by North American and
Chinese companies it is also expected that by 2027 Asian region will see strong growth as there
is an increase in sales of EVs, The Motor insurance premium rates also soared after covid -19
as there was a decline in claims in 2020-2021.
Indian insurance is one of the premium sectors with a market capitalization of $131 Bn
FY22 with a growth of CAGR of 17 percent and the fifth largest life insurance market with a
growth rate of 32-34 percent. The insurance industry in India is monitored by the IRDAI
(Insurance Regulatory & Development Authority of India). The insurance sector in India
consists of more than 50 insurance companies of which above 20 are life insurance and above
30 are non-life insurance.

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 % Market Share of General Insurance FY-22
% Market Share

35.2%
30.4%

18.4%
12.1%
10.2%

2.0% 1.6% 0.5% 1.6% 0.3%

Figure 2: Market Share of General Insurance

(Source: GIC Report)
Figure 2 depicts the market share of the general insurance companies in India where Health
Insurance and Motor Insurance are dominating the market with 35.2% and 30.4% respectively
(General Insurance Council). According to IRDAI the Life insurance sector in India is
dominated by the public sector with the largest stake in LIC, whereas non-life insurance is
dominated by the private sector with a 49 percent share.

The Key Growth Drivers for the Indian insurance industry are

1. Demographics:
As India accounts for 68 percent of the young population this creates a key growth
factor for insurance factor in India.
2. Digital Behaviour:
Consumers are tending toward digital modes for their insurance needs as India is 2nd
largest internet user market and it also creates agents’ ease with digital tools.
3. Government Programs:
Due to various government initiatives such as PM-JAY a scheme under Ayushman
Bharat, there has been an increase in insurance penetration in India

Motor Insurance in India:

Motor insurance in India is Mandatory in India as per the Motor Vehicles Act, of 1998. The
Indian motor insurance is segmented based on,

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  Motor insurance type (Comprehensive & Third-party Insurance)
 By Application (Commercial & private Motor Insurance)
 Distribution Channels (individual agents, Brokers)

The covid impacted Indian motor insurance negatively for a long period as there were halts in
business due to which new automobile purchases which contribute major to premiums were at
the stoppage. As Motor insurance in India accounted for 34,1 percent after the post covid rise
in automobile sales created a demand for motor insurance.

Automobile Sales in India (million units)

30
25
20
15
10
5
0
FY16 FY17 FY18 FY19 FY20 FY21 FY22

Figure 3: Automobile Sale in India

India is one of the biggest automotive sector with over 295 million vehicles registered since
2019 but the decreasing trend in automobile sales is one of the key concerns towards motor
insurance premiums.

1.2 Company Profile

Bajaj Allianz General Insurance Company is a tie-up between Bajaj Finserv and Allianz SE a
German insurance company. The company officially registered on 2nd May 2001 from IRDA
and is one of the biggest insurance companies in India.
Bajaj Allianz has penetration in over 11000 towns and cities with a wide network of
more than 80000 agents and 9000 motor dealer affiliations. The company recently came up
with a brand identity known as ‘Caringly Yours’. Bajaj Allianz focuses on customer centricity
& excellent and caring experience for the customer.
The management is led by Mr. Tapan Singhel MD & CEO, Mr. TA Ramalingam CTO
& Mr. Sasikumar Adidamu Chief Distribution Officer

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Bajaj Allianz declared its revenue of Rs 3,119 crore for Q1 FY 2022-23 with a net profit of Rs
411 crore and it has an excellent solvency ratio of 349 percent.
Bajaj Allianz offers a wide range of services that are
 Health Insurance
 Two-Wheeler Insurance
 Travel Insurance
 Motor Car Insurance
 Shopkeeper Insurance
 Cyber Insurance
1.3 Statement of the Problem:
Parasuraman, Zeithaml, and Berry (1985) define that quality of service is more difficult to
measure than product because services are usually intangibles. As there is rising competition
in service industries service quality becomes extremely important.
Dr. N. Kanan (2010) states Consumers play a important role in the insurance sector the
entry of foreign players has increased the competition in the industry. Understanding the
customers ever changing expectations is a vital step in auto insurance as auto insurance
products can be diverse and complex (Accenture, 2021). The Process of claim approval
becomes hectic and leaves the customers left stranded. In a fast-paced environment enhancing
claim processing leads to increased customer satisfaction (Singh & Ayyar, 2019). Therefore,
to retain customers by identifying and serving their needs providers are actively involved in
understanding customer perception.
The level of competition among the insurance companies: and the customers increasing
demand and the availability of alternatives. The evolving nature of customers’ perceptions and
expectation makes it difficult to measure and manage the services. To be relevant in the current
scenario the organization should have a frequent survey on the quality of service that they are
delivering to the policyholders by doing this they would be able to gain a competitive advantage
over the rivals. Hence the study is conducted to assess motor car insurance claim service quality
in the Hubli region.

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1.4 The objective of the study
 The aim is to determine the motor car insurance claim service quality in the Hubli
region.
 To assess the factors that concern service quality in motor car insurance and determine
the customer’s perceived and expected qualityiof service in the sector to determine the
relationship between the selected factors and to develop the framework in concern to
Service Quality to enhance customer’s satisfaction towards the motor car insurance.

1.5 Significance of study

This study will be useful to general insurance companies to improve their motor service quality
and insurance claim service. It provides a necessary action to improve various determining
factors. It can also help to assess the GAP between the customer’s expectations and perception
in determining factors.

1.6 Limitation of Study

The study is limited by various constraints of resources and time. Further, the study is limited
only to motor car general insurance within Hubli region. The academic calendar within which
study should be completed was one of the vital constraints.

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 CHAPTER 2

LITERATURE REVIEW

2.1 Insurance
In context to individual perspective, insurance is an economic tool through which an individual
allocates a small certain cost known as a premium for a large uncertainty or financial loss. The
main function of insurance is to create the counterpart of risk which could be described as
security further the insurance does not lessen the chance of uncertainty for the policyholder but
it guarantees that it will reduce the probability of financial loss. (Vaughan, 2003)

2.2 Motor Insurance

Motor insurance or auto insurance is one the types of insurance that provides protection to
vehicle owners against the damages that occurred to their own vehicle and also towards any
third-party liability. In India motor vehicle insurance is compulsory under the “MotoriVehicle
Act of 1988” hence driving without the policy in a public place is an offense as per the act.
(Babagana Ali etal, 2021). IRDAI classifies motor insurance under two types i.e.,
 liability policy:
which is mandatory for all registered vehicles here the vehicle damages are not covered
by insurers,
 Comprehensive policy:
This package offers protection against damages to vehicles and an additional liability
policy here the policyholder gets a wide range of coverage for their insured vehicles.

Claim Process in Motor Insurance:

1. Intimate the insurance company:
The first and foremost task is to intimate the insurance company about the accident on
their contact no or email and further a duly signed claim form should be submitted with
requisite detail such as
 Policy No
 Policyholders Name
 Drivers Name
 Location of the accident
 Registration details of the vehicle
 Vehicle type and model
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  Accident description in depth
 Accident date and timeline
After the information is provided the vehicle can be taken to the workshop to estimate
the damages.
2. Inspection:
Here the insurance company sends a surveyor to determine the damages. The surveyor
will produce a report and sends it to the insurer and a copy to the policyholder.
3. Submit Documents:
The next step is to provide the necessary documents and duly signed repair invoices to
the surveyor who will further send it to the company.
4. Claim:
After all, documents are submitted the vehicle gets repaired in the insurers network
garage and the claim is stelled via cashless claim which id directly towards the garage
or the Reimbursement Claim were any prior payments made by the policyholders are
reimbursed to the policyholder account on the basis of terms and conditions of the
policy.

2.3 Review of Empirical Studies

Kannan, (2010) states in a research done on rise of the Indian Insurance Sector the insurance
sector has experienced huge changes in both life and general insurance due to the presence of
a large no of insurers. The increased competition has made a huge revolution in the insurance
industry where there is high demand for Information Technology as the insurance industry is
highly data-rich. Thus, he concluded that life insurance is one of the mainstream segments in
the insurance sector well customised services would satisfy the customer needs and future
growth.
YILDIRIM & Recep, (2015) conducted study in Turkey with 48 insurance agencies to
determine the factors influencing insurance companies’ preferences towards insurance
agencies stated that the recent change in regulated insurance practices within the country has
impacted in the rise of insurance ratios but it remains low compared to the international
premium average. They further stated that the distribution channels in insurance play a vital
role as 60% of premiums are through these channels. Further study shows the ability of
insurance agencies to pay their customers is the second important factor for the insurance
agencies followed by communication and Recognition of the company, where the company

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branding doesn’t influence the reference of insurance agencies. Thus, it is significant for
insurance companies to understand factors that influence the agencies.
Juhari et al, (2016) explored the role of customer satisfaction between service quality
factors in Malaysian Islamic insurance sector, the research focuses on the 12 Malaysian Islamic
insurance providers with data collected from 193 policyholders. The measurement of data
analysis used in the research is Structural Equation Model (SEM) & SERVQUAL model were
a additional dimension named fairness was included to measure the fairness in the insurance
sector. A 11-item instrument was used to measure fairness. The study further stated that
tangible, reliability and fairness have a direct influence on customer satisfaction, and six quality
dimensions have indirect result on customer loyalty. Further it is found out that empathy
provided by companies to inspire trust and confidence does not create customer satisfaction.
Kaur et al, (2017) states current scenario of non-life insuranceiindustry in India, where
the study talks about how the fast service delivery is now vital than the price of the product and
also how the current technology advancements lead to customer demands of customer facing
departments impossible. Here the samples were collected from 228 policyholders of various
public and private general insurance companies and descriptive study was made were it was
found out that the technology was an important factor which led to open new market, new
services, efficient delivery channels. Information technology also played out an important
element in current scenario which enabled to meet the demand of the customer.
Rao & Pandey, (2013) researched factors impacting claims in the non-life insurance
business in India determined the numerous factors which influence the claim in the non-life
insurance industry, and to know the relationship between the insurance claims and premiums
in the general insurance industry in India. The following factors were used to carry the i.e.,
premiums, commission, operating costs, underwriting profit, liquidity. Ordinary Linear
Regression (OLS) and factor analysis was used where the dependent variable is claims
followed by other factors as independent variables. Thus, through the study, it was concluded
that the companies should segment new policies and there should be mutual understanding
between the public and private sectors in claims distribution.
Madan & Pathak, (2012) studied the quality of perceived service by the insurance
providers within Delhi, India. Due to the high competition in India due to the economic policy
of 1991, it becomes a vital task for an organization to know the perception of the policyholders
towards their companies which helps them to face the competition and attract and retention of
customers. The SERVQUAL model was used in the research, The data was restricted to the
Delhi region with a sampling frame of 100 with different general insurance policyholders and

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the Random and Snowball sample technique was used in data collection. It was found out that
private companies such as ICICI Prudential have high tangibility while the public sector like
LIC lack it. It was also determined that public companies should enhance the service quality
factors like reliability and empathy. in the case of private insurance companies, there was a
low-reliability score which is a vital concern as there is a lot of competition in the market, they
are good in terms of tangibility, and they should leverage it for fast growth.
Desai & Kahar, (2017) assessed Service Quality and Customers Satisfaction of General
insurance companies, the research’s aim is to understand the quality of service in general
insurance companies respected to Surat, India. Methodology used in study is the SERVQUAL
model and t-test analysis, a total of 50 sample of policyholders was collected to analyze the
research. Through the study, it was found out that the customers of Surat city were satisfied
and the services were provided as per the expectation of the customers.
Aslam et al, (2015) performed cross-sectional research was done to determine quality
of service in the insurance sector in respect to Oman. The aim of the research was to assess
customer’s expectations and perception of service quality provided by insurance companies in
Oman. The research determined the circumstance related to the quality of service provided by
insurance companies in Oman based on the SERVQUALimodel using seven dimensions-
tangibility, and reliability. Assurance, responsiveness, price, empathy & technical quality. The
data was obtained from the hundred policyholders in muscat using a well-structured
questionnaire. the study showed there is a wide GAP between the policyholders’ expectations
and perception in the dimension of price and reliability.
Gangil, & Vishnoi, (2020) states the policyholders perception towards non-life
insurance in the Gwalior Region, India were the samples were collected from 200 policyholders
with a 5-point scaling, and the Exploratory factor analysis method was used to analyse the data.
The factors used in the study were loyalty, transparent, proficiency, reliable, and convenient
service. Through the study, it was found that the loyalty, transparency proficiency, convenient
service, and reliable influence the policyholders’ perception toward non-life insurance, thus
insurance companies should take the consideration about the dimensions before making
decisions.
Ahmed & Elias, (2018) researched the performance of the general insurance companies in
respect to India through selected variables. The aim of the research was to know the
performance of general insurance companies in both the public and private sector and to
determine operating efficiency of the general insurance companies. The study mainly focused
on secondary data that was collected though the IRDA through which following variable were

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determined Gross Direct premium, settlement of claim, net earned premium, grievance
settlement, equity share capital and deficit or surplus. To understand the significance and
relationship between the variables regression and correlation tools were used. Through the
study it was concluded that the performance of private companies was significantly better to
that of public companies and the public companies should enhance themselves in terms of
product offering and customer service, therefore further it was concluded that the insurance
future is bright due to the demographics and investment-friendly government.
Sinha & Banopadhyay, (2015) stated in the study done to analyse the efficiency of non-
life insurance sector in respect to India the research was carried out with help of secondary data
with purposive sampling method used to collect samples from twelve insurance companies in
which four of them were public and remain private insurance companies. The DEA (Data
Envelopment Analysis) methodology was used analyse the collected data through which it was
found out that efficiency in the general insurance sector in India was high and both public and
private sector have performed well.
Padala & Satysvsthi, (2022) checked the performance in respect to the oriental general
insurance company with the help of secondary data obtained from various sources and IRDA’s
annual reports the following dimensions were alaysed premiums gained, settlement of claims,
operating expenses, profit and lastly income distribution through the descriptive statistics.
Through the study it was stated that the oriental insurance is key player in nations financial and
economic stability and further it was found out that the size of the firm and long-term
investment most influence financial performance of insurance companies in India, and over
investing in long term investment would be a concern for oriental insurance and the company’s
performance decreases as short-term debt and operational expenses rise. Therefore, the
companies should maintain their assets, investments and liabilities to increase the profit.
Upadhyay & Adhikari, (2021) researched to know the influence of quality of service in
life insurance sector in respect to Nepalese companies. The data was collected from 350
samples related to 19 life insurance companies with well-structured SERVQUAL
questionnaire. Various statistical tools were used to analyse and interpreted the data such as
descriptive statistics, correlation matrix and regression analysis. Through the study it was
known that the SERVQUAL dimensions were significantly correlated to customer satisfaction
and the performance of the firms, further it was said that the dimension responsiveness showed
the highest significance with customer satisfaction were as assurance was least in terms ROA.
Devi, (2018) researched the quality of service and policyholder’s satisfaction with respect to
public and private general insurance company in context to Salem city, India. The total sample

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considered for the study were 600 in which 300 samples were in concern to public and
remaining to private insurance companies. The SERVQUAL model and descriptive analysis
was carried out to analyse the data through which it was found out that the Responsiveness
assurance, tangibles and empathy were same as per the customers were as the reliability
dimension saw a gap between both the sectors. Therefore, research concluded that the
policyholders of sale city were satisfied with public and private non-life insurance companies.
Joshy K T et al, (2020) explored service quality and satisfaction customer in respect to
public non-life insurance companies in India, Data was collected within the city of cochin,
Kerala with the questionnaire based on SERVQUAL Model with sample size of 300
policyholders of public general insurance companies. The multiple regression was also used to
analyse qualityiof service in respect to customer satisfaction, through the regression analysis it
was found out that the five factors of the SERVQUAL model had significant positive
correlation with the satisfaction of the customer and hence it was concluded that the companies
should increase the quality of service to enhance the policyholder’s satisfaction.
Ajemunigbhun et al, (2022) researched Claims Handling Process of Auto Insurance
policy in Lagos, Nigeria with the cross-sectional survey research methodology. The research
was conducted through structured questionnaires and 287 samples. The study aimed to analyse
various factors pertaining to the policyholder’s claims such as transparency, easy contact,
communication, and empathy. the study stated that there is a significant perception of insurance
clients towards different process features in the claim process. Further, the study concluded
transparency in the claim is an important feature in motor insurance, therefore, it is important
to develop a package that connects to the insurance provider anytime which would meet the
customer’s expectations strategically and gain the insurer’s trust, and confidence in the public.
Perera S. L, Gamage S. K, (2019) studied the determinants of policyholder’s
satisfaction in Motor Insurance and current service quality using Simple Linear Regression
Analysis. The sample frame was set to 125 policy holders which represented the five general
insurance companies in Sri Lanka. The study determined various dimension i.e., tangible,
reliability, responsiveness, empathy. Assurance, price, technical quality, image quality and
service quality. This study’s focus was to asses behavioural intentions of customers, further the
study stated that the tangible and assurance were functional factors were as reliability was more
significant than other service quality variables. Thus, the study concludes that enhancing the
reliability factor will significantly influence customer satisfaction as the customer are more
influenced towards the companies which are more reliable toward claims and hence when
customers take a policy, they expect trust and reliability from the insurance companies.

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 Rani & Muthusmy, (2020) the study done towards the selection of vehicle insurance
based on the premiums, Retention andiclaim this study was done for the period of five years
starting from 2013-2014 to 2017-2018 with the methodology for the data collection was used
through secondary sources such as websites of general insurance companies, journals, through
the study it was found out that the private sector insurance companies were on the higher side
while compared to public vehicle insurance companies, further the study stated the channel
wise analysis between direct premium with own damage and third party insurance and
correlation between premiums, retentions, and claims were the study determined a negative
relationship between claims and premium.
Yung-Ching Hsu et al, (2016) the research states the Relationship between vehicle
purchase and the frequency of accidents here the research talks about how the occurrences of
road traffic accidents influence the purchase of insurance, also the researchers talk about the
driver with higher IDV are more likely to be include in road traffic accidents. The data was
collected from the 726 respondents in the second largest non-life insurance market Taiwan,
where 32 percent of policyholders with high insured declared value submitted the insurance
claims. The study was done through Cohen and Siegelman intuitively to examine the influence
between coverage and claims. The study examined the probability between purchase behaviour
and its effect on RTA’s; and whether this influence will be optimized by the age and gender of
the policyholders and the age of the vehicles. Through the study, it was concluded that the
drivers with high insured value have a significant relationship with the submission of claims.
The further issue related to the optimization of coverage-claims relationship by age and gender
showed a positive relationship insignificant. Finally, it stated that drivers with higher insured
declared value are more likely to be involved in road traffic accidents.
Efendi & Septiana, (2019) studied customer satisfaction in the process of claim of
vehicle damage with respect to “AT PT Multi Artha Guna Insurance”, in Indonesia. The
SERVQUAL model, Data Analysis Method and Importance Performance Analysis (IPA) was
used to carry out the study with the sample size of 90 motor vehicle policy holders, through the
study it was found out that the tangibility and reliability dimension were the highest in terms
of customer satisfactory level and the huge gap was received was in the responsiveness
dimension.
Jajaee & Ahmad, (2012) evaluated relationship between service quality and satisfaction in the
context to the Australian car insurance sector with sample of 384 respondents were taken, with
consideration of 49 active car insurance companies. The data was analysed through he
dimension of SERVQUAL model i.e. tangibility, reliability, responsiveness, empathy and

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assurance, also service quality was taken consideration for predictor variable and customer
satisfaction was determined as criterion variable. Through the study it was found out that the
responsiveness had the highest relationship with respect to customer satisfaction and therefore
study concluded that higher level of service quality influences more customer satisfaction.
Mallik & Suhaib S, (2018) studied customer awareness of car insurance policies with
regard to united India insurance in Shivamogga Karnataka region. Data was collected through
primary and secondary data with a sample size of 150, the descriptive research design was used
to analyses the data. In this study, it was known that service offered by the companies played
a vital role in the customers, as promotional and advertisement activities in the company were
less compared to other competitors. It was also found that the respondents were focusing on
the factorsilike service and there was less concentration on the publicity of the insurance
companies. Claiming procedure was also a key issue in the company as it took a large portion
of customers’ time.
Manyammaln, Umamaheswari, (2015) states the motor insurance claims in the new
India assurance Co. Ltd in the region of Karaikal. The key aim of the study was to know the
coverage & procedures of the claims and to understand the awareness about the motor
insurance claims in the company. The sampling was done through convenient sampling with a
sample frame of 102, and the descriptive research design was done to analyse the data. Through
the research it was found out that the respondents were unaware of the perks and exclusions of
the policies which creates a lot of complications during the time of settlement and the
respondents were hesitant to opt for claim settlement as they felt it was time-consuming. The
study concluded that every motor insurance company should focus on customer relations.
Ali, et al, (2021) researched the characteristic influencing motor insurance within India,
the factors that were determined to analyse the impact of Automobile sales, RTA, Road length,
and Auto claims towards the motor insurance premium. The research focused on the secondary
data with the help of the Linear Regression model to analyse the data. Through the study, it
was found out that the Motor Insurance premium had a significant relationship between other
independent variables i.e. sales, claims, and road accidents, therefore, it was concluded that the
companies should enhance their focus on location, network, and service delivery to satisfy the
customer’s and there should be a method to create awareness about the benefits of insurance to
the customers and Insurance companies in India have to adapt to the technological
advancement and changing dynamics.
Jaroslaw W, (2015) explored quality of service in Motor Insurance in respect to Polish.
The purpose of study was to determine and analyse factors to know the quantum of the service

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in motor insurance market with SERVQUAL model using five factors- response to customer
expectations, professionalism and confidence, reliability, empathy, service tangibility. and 150
samples were collected and the quality was determined by the difference between customer
expectations and perceptions of the service provided. The study concluded that tangible aspect
of the insurance is vital attribute in direct contracts with customers. Further it stated that there
is a moderate GAP between the customers expectation and perception which concludes that
results failure to fulfil customer expectations.
Baffour, (2018) determined the Quality of service in the Motor Vehicle Maintenance
and Repair Sector: A documentary Review the study was done through the documentary
research method with the 16 journal papers taken into consideration as the samples for the
study. Through this study it was found out that the reliability dimension of the SERVQUAL
model had the highest mean where the tangibility was lowest, as respect to the perceived score,
the assurance was rated the highest factor in the study. The study concluded that the other
SERVQUAL model was a vital method to calculate the service quality where the dimensions
of the model- Tangibility, Reliability, Assurance, Responsiveness, Andi Empathy influence the
service quality, and other dimensions may have a direct or indirect influence on motor vehicle
maintenance and repair industry.
Naik & Panicker, (2018) states in a study done to determine customer satisfaction on vehicle
insurance companies in respect to Vapi, India, with a sample of 50 respondents the main focus
area was to study the satisfaction level of the policyholders in Vapi city. Through the study, it
was found out that the general insurance provided by the general insurance companies was
satisfactory. Though the improvement should be focused on long-term policies and claim
settlements.
J. Tim Query et al, (2007) studied the quality of service in private passenger vehicle insurance
of the 80 insurance companies through the Empirical model were the depended variables
customer satisfaction, and the explanatory variables were capacity, value of the service,
distribution system, regulation, business concentration, advertising, speed to pay claims, and
the default risks. Through the study it was found out that the customer satisfaction provided
valuable influence with the claims service and with overall service, and for the customers who
have claimed the insurance have given more weight to the value of the service they perceive
the study also stated the how fast the claim is settled plays the vital role in the customers
satisfaction the policy feature of the claims handlings efficiency is more important to those
with past claims filing experience.

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 Chandrasekar, Karthick R, (2019) assessed the policyholder’s satisfaction towards
online car insurance in the region of Madurai and Siva Ganga district, Tamil Nādu, India. The
research determined various factors to assess the customer satisfaction i.e., risk, trust and
service quality, the factors have different variables with sample size 115 policyholders were
collected to analyse the data. The methodology used in the study was Multiple Linear
Regression through which trust was categorised as dependent variable and service quality and
risk as predictor variable, through model it was found that quality of service had a significant
impaction trust were as risk had good impact on trust and the overall model determined the 82
percent of variance which was statistically significant. The study concluded that the majority
of people were not ready to buy insurance through online mode and the large number of
policyholders preferred showroom insurer has first option as they believed the claim process
was convenient through this mode and therefore quality of service, trust and level of risk is a
influence in online customer satisfaction.
Stafford et al, (1998) studied the factors of quality of service in auto claims process through
SERVQUAL Model dimensions- tangibility, reliability, assurance, responsiveness, and
empathy. The 22-scale questionnaire was prepared to analyse expectation and perception about
the customers with random sampling technique was used to collect data from the respondents
and the researcher avoided third party claim insurance holders. Further Regression was used to
determine the significance and relationship between service quality and satisfaction. Through
the study it was found out that reliability dimension was the critical factor between quality of
service and satisfaction and the stud conclude that the quality of service and customers are
related vice-versa.
Ghose, Akanchha, (2020) studied preference of customers’ personal vehicle insurance
provided by various insurance companies in the region of Bengaluru, India. The purpose of the
study was to know the determinants considered by the policyholders for choosing vehicle
insurance through this the following factors were considered for the study i.e. damage pays,
Liability reduction, risk Sharing, Value added services & government mandate. A total of 100
policyholders’ data was accumulated with the help of the questionnaires. Through the study it
was found out that 67% of customers preferred private secotor insurance companies while the
other 375 opted for public sector through the stud it was concluded that the companies should
focus on the digital aspect and provide discounted premium rates to the loyal customers. The
main concern area was for the public insurance companies as they should focus on efficient
services. Another main concern deals with the time consumption and verification process in
the case of customer compensation or claims.

16 SMSR, KLE Technological University, Hubballi.

2.4 SERVQUAL Model
SERVQUAL Model is one of the established model for measuring service quality, introduced
in 1985 by Parasuraman. Berry and Zeithaml. The model is used to analyse the wide areas of
organizations service quality, strengths and weaknesses, (Rahmana et al.,2014)
Zeithaml et al (1985) state that the service is generally not tangible that can be felt or
touched, differentiating it from tangible products. Zeithaml et al (1988) emphasized four main
features of the services- intangibility, simultaneity, heterogeneity and perishability.
Intangibility refers to services are only experienced by the customers, simultaneity refers to the
production and consumption of service occurs at similar time, heterogeneity talks about the
performance and preference of the customers differs from one customer to another, lastly
perishability refers to a service cannot be produced or stored
Zeithmal (1988) perceived quality is consumers’ judgment toward an entity’s overall
excellence and superiority. Quality of service perceived by the consumer develops from a
comparison of what they fell service firms should offer them. Therefore, perceived quality is
degree and discrepancy between the expectations and perceptions of the consumers.
Originally the service quality was assessed through ten dimensions. These dimensions were
tangibles, reliability, responsiveness, credibility, security, communication, competence,
courtesy, understanding, and access these dimensions provided a basic structure from which
items were derived for the SERVQUAL Scale (Zeithaml, Berry, 1985) The Service Quality
Gaps Models plays a important role in the service management literature, Gaps approach
determines the precious propositions on how the service quality might be known and how the
service quality rises. The Gap models aim is to explain the reason that the quality of service
industry doesn’t meet the customer demands and things that should be considered to meet the
demands of customers, so it is important to examine five service quality GAP’s in the model
(Siami, Gorji, 2012).

17 SMSR, KLE Technological University, Hubballi.

 Past Personal Word of mouth
Experience needsi Communicationi

Expectedi
Service
Gap5

Perceived
Servicei

Service Gap4 External

delivery communication to
Gap1 Customersi
Gap3

Service quality
Specificationsi

Gap2
Management perceptions of
iCustomer Expectationsi
Figure 4: Service Quality Gap Model
These five gaps are depicted in respectively in Figure 4. (Siami, Gorji, 2012).: Gap1: the
expectation of customers and perception of management towards those expectations. Gap 2:
the gap between management perception of the expectation of customer service quality and
specifications. Gap 3: the Gap between quality specifications and service delivery. Gap 4: the
gap between the delivery of service and the external communication to customers service
delivery. Gap 5: the gap between customer expectations and perceived services. It is considered
as the functional gap in the model. Parasuraman et al (1985) stated 11 determining dimensions
of the service quality model and determined the expected customer service and cognition
service. Further with the help of the ten-service dimension he developed 97 questionnaires and
adopted the SERVQUAL model from the difference between expectations of the customers
and perceived which is Service Quality = P (Perception)- E (Expectation).

18 SMSR, KLE Technological University, Hubballi.

Service Quality Factors originally ten later these ten were compressed into five service quality
dimensions (three original and two combined factors).

2.5 Factors used in SERVQUAL Model

1. Tangibles:
The visualization of Physical facilities, communications, equipment, and personnel
(Siami, Gorji, 2012). As there is no physical element to be examined, customers often
believe the tangible evidence that surrounds them. (Lovelock, & Wirtz, 2007). It
includes subjects (for example appearance of the employees) and physical surrounding
objects (for example, design and decoration). (Onyeaghala & Obioma, 2016). Stafford
et al (1988) stated following opinion toward tangible dimension in respect to insurance
 Office’s Visual appeal
 Employees neatness, appearance & appeal
 Office Modernness
2. Assurance:
The information and courtesy of employees and their skills and ability to convey trust
and confidence (Siami, Gorji, 2012). Onyeaghala & Obioma (2016) states that
assurance is wide features that provide customer confidence such as service guarantee,
promise, trustworthy behaviour and politeness from the employees. Stafford et al
(1988) stated following opinion toward Assurance dimension in respect to insurance
 Insurer trustworthiness
 How safe policyholders feel in engaging with the insurance companies
 Employees politeness
 If the required resources are available to carry out the claim process
3. Responsiveness:
It is a tool for measuring the organization and employees’ receptiveness towards
customers and their willingness to assist customers. Customers often believe in
responsiveness by considering of the time taken to deliver the service (Sheaba,
SekataKenea,2017). Responsiveness is providing service quickly and readiness to serve
unexpected urgent requests (Van Duong Ha, 2020). Stafford et al (1988) stated the
following opinion toward the responsiveness dimension with respect to insurance
 Informing customers when service will be delivered (claims, checks)
 Quickness of service

19 SMSR, KLE Technological University, Hubballi.

  Does the busy schedule of employees affect the promptness to respond to
customers?

4. Empathy:
Onyeaghala & Obioma, (2016) states that empathy is the service firm’s ability to
understand, be genuinely concerned, compassionate, and ready to attend to every
customer with individual needs. Every type of service can have vital factors that are
considered than others, which will be influenced by the environmental features or type
of activity (Lovelock & Writz, 2007). Stafford et al (1988) stated the following opinion
regarding the empathy dimension
 The personal and individual attention insurance companies provided to the
customers
 Employee’s ability to determine customer needs.
 Flexible operating hours to individual schedules

5. Reliability
Reliability is the competence to initiate the pledged service accurately and dependably,
reliability focuses on the outcome of service output was as promised. (Siami, Gorji,
2012). Stafford et al (1988) stated following opinion toward Reliability dimension in
respect to insurance companies
 The ability to deliver the promises in time (claim process and issues)
 The sympathy toward customer problems offered by insurance companies’
employees (Claims/auto accidents)
 Accuracy of maintaining records
 Timeliness in processing and claim checks.
5. Processing
It is a formal request to the company regarding the payment based on the terms of the
policy, the company reviews the validity and then decides to pay out or deny the request
to compensate (GIC).

20 SMSR, KLE Technological University, Hubballi.

 CHAPTER 3
RESEARCH METHODOLOGY

3.1 Research Design and Approach

Kothari (2019) states research designs the conceptual structure in which the research is carried
out it include the blueprint for the data collection, measurement and analysis of the data
collected. further he states research methodology is the way to systematic way to solve the
research problem. A Descriptive study design is carried out to analyse and interpret the study
on the motor car insurance service quality factors. Thyer (2001) states that the descriptive study
is a type of a study where the data is collected without changing the environment. Kothari
(2019) states descriptive research is mainly concerned with describing the individual or groups
characteristics.
The research approach is used to decide the plan and procedure for the study and
includes steps form the wide assumptions to detailed methods of collection, analysis and
interpretation of the data (Creswell, 2014). Both the quantitative and qualitative research
approach is used to carry out the study. Quantitative approach is satiable for the objective
testing by evaluating the relationship between the variables (Creswell, 2014). Kothari (2019)
states the qualitative characteristics can be counted but cannot be computed.

3.2 Sampling Size and Sampling Technique

A total of 168 samples were collected from motor car insurance policyholders within the region
of Hubli, Karnataka, India. The Samples consisted of all the motor car insurance providers in
the region such as Bajaj Allianz, Tata AIG, National Insurance, etc.
The techniques applied in the study is Simple Random Sampling, is a technique here the
samples get an equal probability of getting picked (Kothari, 2019).

3.3 Data Sources and Collection Methods

Primary Data:
The primary source was used to collect data through a modified “SERVQUAL” questionnaire
with a five-point Likert Scale ranging from “Strongly Disagree” to “Strongly Agree” where a
dimension was added by the named Processing. The data was obtained from the customers of
major general insurance companies’ policyholders within the region of Hubli.

21 SMSR, KLE Technological University, Hubballi.

Secondary Data:
Here the data was collected through various articles, journals carried out in the past related to
the service quality in motor car insurance and claims. Further, the data was obtained from the
official annual reports of IRDA and GIC to conduct the study.

3.4 Data Analysis

The data ianalysis is carried through SPSS i(Statistical Package for Social Sciences) version
16 for the descriptive statistics and Hypothesis testing, and Microsoft Excel version 2016 was
also used to analyze the data.

3.5 Reliability and Validity of Data Collection

Validity of data is done to understand whether the right questions are asked which would help
to obtain meaningful insight into the concepts used in the research, thus theipurpose of
checking validity is to seek relevant information that indicates the answers found with the
measurement device is in accordance with the problem. In order to assume, the validity of the
questionnaire a pilot testing of 25 samples was carried out.
The term reliability refers to the ability of a measure to present the same results on
different occasions, or similar observations can be obtained by another observer. If something
is measured many times the results are pretty much same thus, we could determine the that our
measurement tool is reliable (Saunders et al, 2009).
Many researchers use Cronbach’s alpha to test the tools’ internal reliability, the values
of the test vary from 0 to 1 and a value less than 0.6 is considered unsatisfactory where the
benchmark score is 0.70 (Patil & Bagodi, 2020)
The reliability test was conducted on the factors of the SERVQUAL model and based
on the data in table 3.1 Cronbach’s Alpha value is 0.828 which is greater than 0.70 which
possibly concludes the study factors of SERVQUAL under this study are reliable.
Table 3.1: Reliability Test

Reliability Statistics

Cronbach's Alpha N of Items

0.828 40

22 SMSR, KLE Technological University, Hubballi.

3.6 Hypothesis:

𝐻 1 : There is no significant gap between the policyholder’s expected and perceived service
quality with respect to the Tangibility dimension.

𝐻 1: There is a significant gap between the policyholder’s expected and perceived service
quality with respect to the Tangibility dimension. I

𝐻 2 : There is no significant gap between the policyholder’s expected and perceived service
quality with respect to the Assurance dimension.

𝐻 2 : There is a significant gap between the policyholder’s expected and perceived service
quality with respect to the Assurance dimension.

𝐻 3 : There is no significant gap between the policyholder’s expected and perceived service
quality with respect to the Responsiveness dimension.

𝐻 3: There is a significant gap between the policyholder’s expected and perceived service
quality with respect to the Responsiveness dimension.

𝐻 4 : There is no significant gap between the policyholder’s expected and perceived service
quality with respect to the Empathy dimension.

𝐻 4 : There is a significant gap between the policyholder’s expected and perceived service
quality with respect to the Empathy dimension.

𝐻 5 : There is no significant gap between the policyholder’s expected and perceived service
quality with respect to the Processing dimension.

𝐻 5: There is a significant gap between policyholders expected and perceived service quality
with respect to the Processing dimension.

23 SMSR, KLE Technological University, Hubballi.

 CHAPTER 4
DATA ANALYSIS & INTERPRETATION

This chapter includes the data presentation and interpretation done through SPSS, Microsoft
Excel and analyse via Descriptive Statistics and Graphs. It covers data in respect to
policyholder’s characteristics, and opinions in regard to dimensions of Service quality in motor
car insurance. The total respondents 168 samples with respect to the Hubli region.
4.1 Personal Information of Policyholder
Table 4.1: Demographic Profile of Policyholders

Variable Frequency Percent (%)

1. Age
18-28 60 35.7
28-38 46 27.4
38-48 30 17.9
48&above 32 19.0
Total 168 100.0
2. Gender
male 137 81.5
female 31 18.5
Total 168 100.0
3. Education
pre university 27 16.1
under-graduation 65 38.7
post-graduation 39 23.2
others 37 22.0
Total 168 100.0
4. Occupation
student 25 14.9
employed 126 75.0
unemployed 17 10.1
Total 168 100.0
Interpretation:
Demographics basically means specific attributes given to the general population and include
factors such as Age, Gender, income, occupation and geographic location. It is statistical
information in context to the population’s socio-economic condition.
As depicted in the above table 4.1 majority of policyholders fall in the age group of 18-
28 with 35.7% followed by 28-38 at 27.4% and the least being 48 & above (17.9%) and 38-48
24 SMSR, KLE Technological University, Hubballi.
(17.9%) through this analysis majority of the population fall between Young and Middle Age
and they could provide the reliable information. In context to gender, the majority of
policyholders are male 81.5%, and the rest 18.5% are female which shows male domination
with respect to Car purchases.
In terms of Education, the categories include pre-university, under graduation, post-
graduation, and others which consist of people with SSLCs and below, diplomas, and other
courses. Through the analysis, we could see the majority of policyholders being under graduate
with 38.7% followed by post-graduation and others being 23.2% and 22% respectively and leas
being the pre-university with 16.1% through this data we can say the majority of population of
respondents are educated hence they provide proper justifications.
In terms of occupation 75% policyholders were employed 14.9% being Students, and
rest 10.1 being unemployed. Muhammad et al (2012), states that the reductions in
unemployment rate have positive influence on the car sales.

4.2 Type of Insurance Policy

Type of Motor Car Insurance Policy

20%

Comprehensive
Third party

80%

Graph 4.1: Type of Motor Car Insurance Policy

Interpretation:
Car insurance is categorized into two types i.e., comprehensive and third-party liability.
Comprehensive insurance refers to overall coverage which includes repairs and replacement
and overall, third-party liability which occurs during accidents or theft. Whereas the third party
covers only damages that occurs to the third person or vehicle. Through the analysis we could
see there is significant share of comprehensive insurance with 80% and rest 20% is third party
insurance.

25 SMSR, KLE Technological University, Hubballi.

4.3 Insurance Claim

Insurance Claimed

22%

78%

yes no

Graph 4.2: Insurance Claim

Interpretation:
An insurance claim is a request to the insurance company to provide reimbursement towards
the losses covered under the insurance policy. The graph 4.2 represents the no of policyholders
claimed the motor car insurance, where the majority of the respondents with 78% didn’t
claimed the insurance and rest 22% have claimed.

4.4 Tangibles Dimension

Tangibles
5.00

4.00

3.00

2.00

1.00

0.00
T1 T2 T3 T4

Expectation Perception

Graph 4.3: Tangibles Dimension

26 SMSR, KLE Technological University, Hubballi.

Interpretation:
Tangibles refer to the physical evidence and the presentation of the which could be in the form of
location, layout, size, décor, or capacity (yarimoglu,2014). Zaidatol et al,(2012) stated the interpretation
of mean score as (1-2.33) low, (2.34-3.67) moderate, (3.68-5) high.
The chart 4.3 depicts the Expected and perceived quality of service in context to the tangibles
dimension, here the statements are coded as T1, T2, T3, and T4 on the x-axis. Through the analysis we
could see the perceived score is between (2.34-3.67) which implies percieved service quality is
moderate , were as ecpectation is between (3.68-5) which implies the expected service quality of
policyholders in this dimension.

4.5 Assurance Dimension

Assurance
5.00

4.00

3.00

2.00

1.00

0.00
A1 A2 A3 A4 A5 A6

Expectation Perception

Graph 4.4: Assurance Dimension

Interpretation:
Assurance is defined as the ability and knowledge of the employees to motivate inspire and
trust, Assurance consists of a feeling of safety while transactions, politeness, and adequate
support (Yarimoglu,2014). Zaidatol et al,(2012) stated the interpretation of mean score as (1-2.33) low,
(2.34-3.67) moderate, and (3.68-5) high.
The chart 4.4 depicts expected and perceived service quality in respect to the assurance dimension,
here the statements are coded as A1, A2, A3, A4, A5, and A6 on the x-axis. Through the analysis
performed we could see the percived service quality is between the range of (2.34-3.67) which is
considerd as moderate were as the expectation of the policyholders falls between (3.68-5) which is
considerd high.

27 SMSR, KLE Technological University, Hubballi.

4.6 Responsiveness Dimension

Responsiveness
5.00

4.00

3.00

2.00

1.00

0.00
R1 R2 R3

Expectation Perception

Graph 4.5: Responsiveness Dimension

Interpretation:
Responsiveness refers to behaviour, timeliness, tone of voice, handling complaint and solving
problems. It’s basically helping the customers and providing prompt service. (yarimoglu,2014).
Zaidatol et al,(2012) stated the interpretation of mean score as (1-2.33) low, (2.34-3.67) moderate, and
(3.68-5) high.
The chart 4.5 depicts the expected and percievied service quality in respect to responsiveness
dimension, here the statements are coded as R1, R2, and R3 respectively on the x-axis. Through the
data we could see the level of percived responsiveness is between (2.34-3.67) which is considerd as
moderate, in respect to the expected responsiveness its between (3.68-5) which is considerd high.

4.7 Empathy Dimension

Emphaty
5.00

4.00

3.00

2.00

1.00

0.00
E1 E2 E3

Expectation Perception

Graph 4.6: Empathy Dimension

28 SMSR, KLE Technological University, Hubballi.

Interpretation:
Empathy refers to the individual attention the company or the firm provides to the customers,
it includes offerings, caring to the customers at individual level. (Crompton et al, 1991).
Zaidatol et al,(2012) stated the interpretation of mean score as (1-2.33) low, (2.34-3.67) moderate, and
(3.68-5) high.
The chart 4.6 depicts the expected and percieved service quality in emphaty dimension, the
satements are coded as E1, E2, and E3 respectively on the x-axis. The average mean scores of percived
service quality fall in between (2.34-3.67) which are considerd as moderate, in respect to expected
service quality the mean scores fall in between (3.68-5) which is high.

4.8 Processing Dimension

Processing
5.00

4.00

3.00

2.00

1.00

0.00
P1 P2 P3 P4

Expectation Perception

Graph 4.7: Processing Dimension

Interpretation:
It is a formal request to the company regarding the payment based on the terms of the policy,
the company reviews the validity and then decides to pay out or deny the request to compensate
(GIC). It’s basically helping the customers and providing prompt service. (yarimoglu,2014).
Zaidatol et al,(2012) stated the interpretation of the mean score as (1-2.33) low, (2.34-3.67) moderate,
and (3.68-5) high.
The chart 4.7 depicts the expected and perceived service quality in the processing dimension,
the statement pertaining to the dimension are coded as P1, P2, P3, and P4. Through the anlaysis we
could see the mean score fall in between (2.34-3.67) which is considerd as moderate in respect to the
expected service quality the mean scores fall in between (3.68-5) which is considerd as high.

29 SMSR, KLE Technological University, Hubballi.

4.9 SERVQUAL Dimension

Service Quality in Motor Car Insurance

Expectation Perception

Tangibles
5
4
3
2
Processing Assurance
1
0

Responsivenes
Emphaty
s

Graph 4.8: Service Quality in Motor Car Insurance

Table 4.2: SERVQUAL GAP Scores

Dimensions Expectation Perception Gap (P-E)

Tangibles 4.07 3.04 -1.03
Assurance 4.08 3.01 -1.07
Responsiveness 4.05 2.97 -1.08
Empathy 3.95 3.01 -0.94
Processing 4.07 2.67 -1.40
Total SERVQUAL Score 4.04 2.94 -1.10

Interpretation:
SERVQUAL model is one of the established models for measuring quality of service,
introduced in 1985 by Parasuraman. Berry and Zeithmal. The model is used to analyse the wide
areas of organizations service quality and strengths and weaknesses, (Rahmana et al., 2014).
Zaidatol et al,(2012) stated the interpretation of the mean score as (1-2.33) low, (2.34-3.67)
moderate, and (3.68-5) high.
The Graph 4.8 represents the expected and perceived service quality in respect to
SERVQUAL dimensions, through the analysis we could see the average perceived mean score
is between (2.34-3.67) which is considered to be moderate with Tangibles (3.04) followed by
Assurance (3.01), empathy (3.01), further responsiveness (2.97) and processing (2.67) being

30 SMSR, KLE Technological University, Hubballi.

 the least. In context to expected service quality mean score it falls between (3.68-5) which is
considered as high.
The Table 4.2 represents the Gap between the perception and expectation (Perception
(P) – Expectation (E)) with respect to all the dimensions taken into the study through this we
could see the highest gap in Processing Dimension (-1.40) followed by responsiveness (-1.08),
Assurance (-1.07) and lowest being the Empathy (-0.94) and Tangible (-1.03).

4.10 Hypothesis Testing

Table 4.3: Paired t-test results
Paired Differences
95% Confidence
Std. Interval of the
Std. Error Difference Sig. (2- Null
Mean Deviation Mean Lower Upper t df tailed) Hypothesis
H1 1.028 0.695 0.054 0.922 1.134 19.190 167 0.000 Rejected
H2 1.072 0.809 0.062 0.949 1.196 17.176 167 0.000 Rejected
H3 1.079 0.785 0.061 0.960 1.199 17.819 167 0.000 Rejected
H4 0.940 0.845 0.065 0.812 1.069 14.430 167 0.000 Rejected
H5 1.400 0.786 0.061 1.281 1.520 23.081 167 0.000 Rejected

Kothari, (2004) states that the hypothesis simply means the assumption that should be proved
or disproved, he further states the research hypothesis can be a predictive form of statement, to
test the hypothesis paired t- test with 95% confidence was performed. Paired t- test is performed
to test the two samples that are related. (Kothari,2004).
Desai & kahar, (2017) states if the value of p is below 0.05 then the null hypothesis is
rejected and alternate hypothesis can be accepted, through the following testing of hypothesis
(Table 4.3) the value of Hypothesisi1, Hypothesisi2, Hypothesis 3, Hypothesisi4 and
Hypothesis 5 is less than 0.05 hence the null hypothesis is rejected and alternate hypothesis is
accepted which implies there is a statically important difference between the expected and
perceived Service quality.

31 SMSR, KLE Technological University, Hubballi.

 CHAPTER 5
FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Findings
The study was conducted to assess the service quality of motor car insurance with respect to
Hubli region to achieve the finding the structured questionnaire was distributed to 168
policyholders pertaining to different motor car insurance companies within the area,
Descriptive Statistics was used to analyse the data through which the major finding was found
out as follows:
 Through the study it was found out that the majority of the policyholder’s were male
with 81.5% and the rest 18.5% were females which shows the large numbers of car
penetration is among male.
 Through the study it was also found out the level of employment have a positive effect
on the automobile purchases as we can see the majority of the policy holders were
employed with 75% followed by the students with 14.9%
 The perceived mean value in context to the tangible dimension was in between (2.34-
3.67) which is indicates the perceived level of service quality of motor car insurance
in respect to tangible dimension was moderate.
 In context to the expected mean value regarding the tangible dimension was in between
(3.68-5) which is indicates the expectation level of service quality in motor car
insurance of the policyholders in respect to tangible was High.
 The perceived mean value in context to the assurance dimension was in between (2.34-
3.67) which is indicates the perceived level of service quality of motor car insurance
in respect to assurance dimension was moderate.
 In context to the expected mean value regarding the assurance dimension was in
between (3.68-5) which is indicates the expectation level of service quality in motor
car insurance of the policyholders in respect to assurance was High.
 The perceived mean value in context to the responsiveness dimension was in between
(2.34-3.67) which is indicates the perceived level of service quality of motor car
insurance in respect to responsiveness dimension was moderate.
 In context to the expected mean value regarding the responsiveness dimension was in
between (3.68-5) which is indicates the expectation level of service quality in motor
car insurance of the policyholders in respect to responsiveness was High.

32 SMSR, KLE Technological University, Hubballi.

  The perceived mean value in context to the empathy dimension was in between (2.34-
3.67) which is indicates the perceived level of service quality of motor car insurance
in respect to empathy dimension was moderate.
 In context to the expected mean value regarding the empathy dimension was in
between (3.68-5) which is indicates the expectation level of service quality in motor
car insurance of the policyholders in respect to empathy was High.
 The perceived mean value in context to the processing was in between (2.34-3.67)
which is indicates the perceived level of service quality of motor car insurance in
respect to processing dimension was moderate.
 In context to the expected mean value regarding the processing dimension was in
between (3.68-5) which is indicates the expectation level of service quality in motor
car insurance of the policyholders in respect to processing was High.
 Through the overall SERVQUAL dimension it was found out that there was a GAP
between the expected service quality and perceived service quality in motor car
insurance and the paired t-test also proved that there is statistically significant
difference between the dimension of SERVQUAL model.
 The main concerning factor was the processing dimension as there was large gap score
of (-1.40) followed by the responsiveness with GAP score of (-1.08), hence the least
GAP score was observed in the tangibles dimension with the gap score of (-1.03).
 Through the further observation it was also found out the overall GAP score of
SERVQUAL model in respect to motor car insurance was (-1.10).

5.2 Conclusion
The aim of the research was to assess the service quality of motor car insurance using
SERVQUAL model and its dimension with respect to the Hubli region. Through the literature
it was found out that the service quality is more difficult to measure than product quality
because services are usually intangibles. As there is rising competition in service industries
service quality becomes extremely important. Consumers play a vital role in the insurance
sector the entry of foreign players has increased the competition in the industry. Understanding
the customers ever changing expectations is a vital step in auto insurance. Though the study it
was found out that overall perceived score within all SERVQUAL dimensions was between
(2.34-3.67) which is considered to be moderate but key concerning area was the processing
dimension as it deals with claims and process occurred during the claims the huge gap of

33 SMSR, KLE Technological University, Hubballi.

(-1.40) can play a vital role in the insurance industry as the Process of claim approval becomes
hectic and leaves the customers left stranded. In a fast-paced environment enhancing claim
processing leads to increased customer satisfaction. The next key concerning area was the
responsiveness with the gap score of (-1.08), hence the least gap was found in the tangibles
dimension with gap of (-1.03).
Therefore, knowing how the policyholders perceive the service quality and often
measuring it will benefit the companies as there is huge competition in service and insurance
industry improving the quality of service may help companies gain the upper advantage.

5.3 Recommendation
Based on the data analysis and the findings the following recommendation are suggested which
would help insurance companies to improve the service quality and the claim delivery system
in motor car insurance. Recommendations are:
1. To improve the service quality in motor car insurance.
2. To focus on the processing and the responsiveness dimensions.
3. To reduce the GAP between the expected and perceived quality of service in respect to
processing dimension.
4. To develop a system through which the claim processing time can be reduced.
5. To create awareness about the motor car insurance.

34 SMSR, KLE Technological University, Hubballi.

 CHAPTER 6
REFERENCES
6.1 Bibliography
Ahmed, J. and Elias, I.P. (2018) “Study on Performance of General Insurance Companies In
India on Selected Variables,” Journal of Emerging Technologies and Innovative
Research (JETIR), 5(3).
Ali, B. and Hadejia, D.B. (2021) “A Study on Factors Influencing Motor Insurance In
IndiaBabagana,” IJISET - International Journal of Innovative Science, Engineering &
Technology, 8(5). Available at: https://doi.org/2021.
Aslam, N., Nazneen, Q. and Mubeen, S.A. (2015) “Assessment of Service Quality In Insurance
Industry In Sultanate of Oman,” International Journal of Research in Finance and
Marketing, 5(8).
Awuah, E.B. (2018) “Service Quality in the Motor Vehicle Maintenance and Repair Industry:
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6.2 Websites:
IRDAI: www.irdai.gov.in
GIC: www.gicre.in
EIOPA: www.eiopa.europa.eu
Accenture: www.accenture.com
Bajaj Allianz: www.bajajallianz.com
IBEF: www.ibef.org

37 SMSR, KLE Technological University, Hubballi.

 ANNEXURE 1
Questionnaire

“Service Quality in Motor Car Insurance”

Questionnaire
Dear Respondent,
I request you to fill in your response to the following questions. This is purely for academic
purposes. Further, we will assure you that the information provide by you will be kept
confidential and will not be disclosed to anyone.

Thank you,

Mr. Sayed M Quadri

Student, 2nd Year MBA,
School of Management Studies and Research,
KLE Technological University, Hubballi

1. Name: ………………………………………………………………………….
2. Phone no: ...……………………………………………………………………..
3. Age: 18-28 28-38 38-48 48 & above
4. Gender: Male Female
5. Education: Pre- University Under-Graduation Post-Graduation Others
6. Occupation: student Employed Unemployed
7. Model of car: ………………………………………………………………………
8. Year of Purchase: ………………………………………………………………….
9. Name of the insurance: ……………………………………………………………
10. Type of policy: Comprehensive Third party
11. Insurance Expiry: …………………………………………………………………
12. Did you claim your insurance: Yes No

38 SMSR, KLE Technological University, Hubballi.

 Direction: This part of the survey attempts to measure your opinion about motor car
insurance service quality. Please rate the extent to which you perceive & expect the motor
insurance service quality offered by your insurance company by ticking “√” the best choice
among given alternatives.
Score Level - Strongly Agreed (SA) =5, Agreed (A)=4, Neutral (N)=3, Disagreed (D)=2, and
strongly disagreed (SD)=1
Statement Expectation Perception
1 2 3 4 5 1 2 3 4 5
SD D N A SA SD D N A SA
Tangibility:
Your insurance 1 2 3 4 5 1 2 3 4 5
company has up-to-
date equipment SD D N A SA SD D N A SA

Your insurance 1 2 3 4 5 1 2 3 4 5
company’s physical
facilities are SD D N A SA SD D N A SA
visually appealing

Your insurance 1 2 3 4 5 1 2 3 4 5
company’s
employees are well SD D N A SA SD D N A SA
dressed and appear
neat

The appearance of 1 2 3 4 5 1 2 3 4 5
the physical
facilities of your SD D N A SA SD D N A SA
insurance office is
in keeping with the
type of services
provided
Assurance:
Your insurance 1 2 3 4 5 1 2 3 4 5
company promises
to do something on SD D N A SA SD D N A SA
time, it does so

Is your insurance 1 2 3 4 5 1 2 3 4 5
company
dependable SD D N A SA SD D N A SA

You feel safe in 1 2 3 4 5 1 2 3 4 5

your transactions
with your insurance SD D N A SA SD D N A SA

39 SMSR, KLE Technological University, Hubballi.

company’s
employees

Does your 1 2 3 4 5 1 2 3 4 5
insurance company
provide its services SD D N A SA SD D N A SA
at the time it
promises to do so

Does your 1 2 3 4 5 1 2 3 4 5
insurance company
keep its record SD D N A SA SD D N A SA
accurately

Responsiveness:
Your insurance 1 2 3 4 5 1 2 3 4 5
company does tell
customers when SD D N A SA SD D N A SA
services will be
performed

Employees of your 1 2 3 4 5 1 2 3 4 5
insurance company
are willing to help SD D N A SA SD D N A SA
customer

Does your 1 2 3 4 5 1 2 3 4 5
insurance company
employees will SD D N A SA SD D N A SA
never be too busy
to respond to its
customers
Empathy:
Is your insurance 1 2 3 4 5 1 2 3 4 5
company’s
employees being SD D N A SA SD D N A SA
polite

Does your 1 2 3 4 5 1 2 3 4 5
insurance
company’s SD D N A SA SD D N A SA
employees give
personal attention
Employees of your 1 2 3 4 5 1 2 3 4 5
insurance company
know what your SD D N A SA SD D N A SA
need are and
addresses
immediately

Processing:

40 SMSR, KLE Technological University, Hubballi.

Did your insurance 1 2 3 4 5 1 2 3 4 5
company help in
claiming process SD D N A SA SD D N A SA

Did the process was 1 2 3 4 5 1 2 3 4 5

convenient
SD D N A SA SD D N A SA
Did the insurance 1 2 3 4 5 1 2 3 4 5
claim was
SD D N A SA SD D N A SA
provided as
assured

Claim process 1 2 3 4 5 1 2 3 4 5
was carried on in
SD D N A SA SD D N A SA
time

41 SMSR, KLE Technological University, Hubballi.