LIC losing customer base: Survey

The Life Insurance Company of India (LIC) is slowly losing its consumer base to private players due to poor customer satisfaction, said a survey report.

The Life Insurance Company of India (LIC) is slowly losing its consumer base to private players due to poor customer satisfaction, said a survey report released in New Delhi.

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The survey, conducted by the Voluntary Organisation In Interests Of Consumer Education (VOICE) in eight major cities, found that while HDFC Chubb is a favourite in home insurance, Tata AIG is a clear winner in health and life insurance. IFFCO Tokio was found to be a favourite for motor insurance.

"Public sector insurance companies like LIC, despite their longstanding presence in the sector, are losing out on their customer base as consumers steadily lose confidence in their service," said Bejon Misra, CEO of the non-profit organisation VOICE.

"The main factors affecting their consumer perception include tardy internal redress system, employees' rude behaviour and general apathy to consumer interests," he added.

The survey - conducted over a period of three months - took into account 23 of the 26 companies operating in India.

Misra said that though LIC still holds around 80 percent of the market share, it is no longer the only option available to people.

The Ministry of Consumer Affairs supported the survey.