The issues surrounding the measurement and provisions of service quality in the life insurance sector are becoming increasingly important. The purpose of the current study is to identify the service quality factors affecting customer satisfaction levels of the policyholders. The study is based on responses of 210 policyholders from northern India. Various statistical tests, namely, reliability analysis and factor analysis have been carried out to test data that was collected through survey method. Findings of the study reveal that the accessibility factor has a higher mean satisfaction as compared to mean satisfaction of reliability and assurance factors. Comparison of overall mean satisfaction based on various factors extracted, shows that respondents who had purchased insurance policies before privatization, had a higher mean score as compared to the respondents who took insurance policies after privatization.

One of the objectives of privatization of the life insurance industry in India has been to increase insurance penetration and insurance density by improving the quality of service and enhancing the level of customer satisfaction. In an effort to fulfill their mission, most of the insurers are trying to be a scale player by introducing a range of innovative products to meet the customers' requirements in an effort to serve them better. Insurers are also focusing their attention towards aspects of service quality, viz., customer relationship management, advertisement and publicity, technology upgradation, etc. Besides, customers also expect better service quality in the context of increasing access to information and tougher competition. A very important issue which comes up at this particular time is whether the industry is providing services up to the level of the Policyholders' Reasonable Expectations (PREs) or not. The present study attempts to study the impact of privatization on various service quality aspects. The study envisages assessing the attitude of the policyholders towards various service quality dimensions and their consequent satisfaction levels.

Many definitions of service quality revolve around the identification and satisfaction of customer needs and requirements (Parasuraman et al., 1985 and 1988; and Cronin and Taylor, 1992). Parasuraman et al. (1985) argue that service quality can be defined as the difference between predicted or expected service (customer expectations) and perceived service (customer perceptions). If expectations are greater than performance, then a service quality gap materializes. This does not necessarily mean that the service is of low quality but rather that the customer expectations have not been met, hence, customer dissatisfaction occurs and opportunities arise for improving customer expectations. Pressure to provide quality services in order to remain commercially competitive has forced businesses to develop a better understanding of what service quality means to the customer, and how it could best be measured (Parasuraman et al., 1985 and 1988). It has also been argued that organizations make assumptions about what is important to the consumer, only to discover later that the customers' values are different from the organization's assumptions. (Donnelly and Wisniewski, 1996; and Lam, 1997). Much of the discussion about service quality measurement has revolved around the concept of dimensions of service quality, where dimensions refer to a set of attributes which consumers use in evaluating the quality of the service provided (Asubonteng et al., 1996). For the present study, a total of 30 statements have been drafted covering various service quality attributes of the life insurance industry. The statements included in the questionnaire (Annexure) for measuring service quality had been taken from the servqual scale and from research studies in related fields. Although the five quality dimensions given in the servqual scale can accommodate the various aspects of insurance, some additional items have been added so as to evaluate the impact of price, delays in claim settlements, etc., on the customers' satisfaction levels.

Service Quality Perceptions, Life Insurance Policyholders, Pre-Privatization, Post-Privatization, Customer Relationship Management, Life Insurance Industry, National Capital Region, NCR, Kaiser-Meyer-Olkin, KMO, Good Communication Skills, Health Care Quality Assurance, Total Quality Management, Psychometric and Diagnostic Criteria.