Customers’ Satisfaction Towards Claim Settlement of Life Insurance Policies in Nepal (With Reference to Nepal Life Insurance Corporation and Life Insurance Corporation Nepal)

Abstract

Claims Settlement is considered to be one of the most valuable possessions of any insurer. It is one aspect of insurance practice, the handling claims, which can make the image of insurance company by satisfying customers. This study seeks to examine the claim settlement of claimants and its impact on customer satisfaction. In specific, the study investigates clarity of settlement advice, claim procedure and payment of claim of the claim clients. The survey was conducted using a questionnaire administered to 270 claimants selected from two life insurance companies of Kathmandu valley. The descriptive statistics, correlation analysis, and regression analysis were used to analyze the data. The findings reveal that claimants are having payment of claim have low significant but clarity of settlement advice and claim procedure are found to be significant in predicting customer customers' satisfaction. However, payment of claim is found to be insignificant in predicting customers' satisfaction. The results also confirm that there is significant impact of claim settlement on customers' satisfaction. Claim settlement starts with delivering transparent information without any loopholes (clarity of settlement advice), then understanding the right, short and simple approach (claim procedure), to pay benefited interest amount to clients (payment of claim). This whole sequential series are effectively performed to best explain claim settlement and ultimately to meet customer satisfaction. The result of this study has helped to identify the role of clarity of settlement advice, claim procedure, and payment of claim in claim settlement of life insurance companies. It becomes even more important for the insurance companies to properly balance the cycle of claim settlement and serve best customer satisfaction. As well as the customers can get detailed information for the future to get insurance policy. The concept can be explored and examined more deeply in the future with the consideration of several other variables affecting customer satisfaction.