In this world, human life is considered as the most precious one. And ‘Life Insurance' offers protection against financial loss resulting from one’s death. The liberalization of the Indian economy in the 1990s and the subsequent entry of international players have contributed to the growth of life insurance in India. In India, up to 26% foreign direct investment is allowed in life insurance. Every insurance company wants to know the factors which affect the customers’ satisfaction because it helps these companies to beat the competition. And this study is concerned with determining the factors that affect the satisfaction of customers of life insurance in major cities of Punjab. And the analysis of this study has derived seven factors of customer satisfaction, namely, Services and Company Reputation, Quick and Timely Services, Customer Convenience, Additional Facilities, Loyalty of Employees, Efficient Departments with Disciplined Employees, and Service Material and Needs Understanding.

In India, insurance was first introduced in the year 1818 with the establishment of the ‘Oriental Life Insurance Company’ in Calcutta. Due to the British discrimination against Indians, the Indian leaders like politicians Mahatma Gandhi and Jawaharlal Nehru encouraged Indian people to start their own insurance businesses. After the passing of Insurance Act 1870, the first Indian-owned insurance company, named ‘Bombay Life Insurance’, was established. Then insurance business grew very fast, and to regulate the business, a new act was passed in 1938. After Independence, there were 209 insurance companies in both general and life insurance sectors. Regulated Indian insurers are divided into two core categories: life insurance and general or nonlife insurance. Life insurance includes products like endowment policies and annuities, whereas general insurance covers all other types of insurance (Narayanan and Saravanan, 2011). Life insurance has a long and deep-rooted history in India (Shukla, 2011). Devasenathipathi et al. (2007) stated that in 1818, the British Government introduced life insurance in India with the establishment of the Oriental Life Insurance Company in Calcutta. In course of time, the thought process of insurance authorities also changed and they decided to commence an Indian government-owned insurance company for the welfare of society. So India’s first government-owned insurance company, named ‘Life Insurance Corporation of India (LIC)’, was established on September 1, 1956, which basically provided life as well as general insurance. It was later revitalized by the creation of a governing body in 1919 named ‘Insurance Regulatory and Development Authority (IRDA)’. The governing body was established to govern the growth of all insurance companies or insurance business in India. Chauduri and Chakraborty (2008) stated that the statutory body even emphasized upon the liberalization of the insurance sectors for private (both Indian and foreign) players in order to infuse fresh capital and become more competitive. So, the Indian government approved a legislative committee named ‘Malhotra Committee’ in 1993 under the chairmanship of R N Malhotra. This committee was appointed to make a layout for the privatization of life insurance sector. The committee submitted its report in 1994 but it took six years to implement it and to decide about the Foreign Direct Investment (FDI) percentage in Indian insurance sector.

Management Research Journal, Life Insurance, Customer Satisfaction, Services, Company Reputation, Quick and Timely Services, Customer Convenience, Additional Facilities, Loyalty of Employees, Efficient Departments, Disciplined Employees, Service Material, Punjab.