Knowing Customers Selection Criteria on LIC's Value Added Services (with special reference to LIC customers at Bangalore)

Value added services are complimentary service options added to a core service offering. In the aggressive competitive market, success and survival are the keywords for any economic entity. For the complete satisfaction of their customers, business entities are delivering quality services, which are of paramount importance for their existence. One among the leading organization among insurance providers is Life Insurance Corporation of India (LIC) has been created benchmarks in the Insurance sector. Now a day's value added services have become customer's tool and a sole way to distinguish one company from another. New products and services from insurance companies must appeal to the needs and desires of targeted customer groups, while offering immediate customer satisfaction. This approach will require insurance companies to bundle their core products with adjacent value-added services to become relevant to customers’ specific life situations. The purpose of this paper is to examine the awareness and perception level of consumers on Value-added Service (VAS) offered by Life Insurance Corporation of India (LIC) at Bangalore city. Convenience type non-probability sampling method is used to collect data with sample size of 101 using structured questionnaire. It is an attempt to find out how customers perceive the value added services offered by LIC and the usage of their services on post purchase of insurance policies. Hypothesis were created and tested on a sample population and were analyzed using Statistical Package for Social Science (SPSS). The analysis of the study illustrates the opinion, importance and awareness among customers on various value added services of LIC is same across age group, gender, education and income levels.