Assistant Professor, Department of Commerce, Chaudhary Devi Lal University, Sirsa, (India)
Online published on 5 June, 2014.
This paper has made comparative study of responses collected from development officers and the agent on the economic and after sale services issues which responsible for life insurance policies lapsation. The mean, standard deviation has calculated to describe the responses on seven items most affective in policies lapsation and F- test has applied to confirm the result of descriptive statistics. The development officers (80) indicate that poor after sale services ( = 4.30, S.D. =.973) and discontinuity in saving of customers ( = 3.76, S.D. = 1.916) are the reasons of lapsation of policies. Responses on the same variables, the agents (160) told commission pattern ( = 4.17, S.D. = 1.459) and poor after sale services ( = 3.63, S.D. = 1.624) are responsible for lapsation. Overall, it has concluded that development officers and agents agreed on poor after sales service is responsible for lapsation, consequently it confirmed the IRH and PRH theories. The results are important for life insurance actuaries, companies, regulators, agents and development officers and also help in increasing the retention of customers.
