| Abstract: | This study examined the Effect of Motor Insurance Service Quality on Customers Satisfaction in: The case of Ethiopian Insurance Corporation; North Addis District. To meet the objective this study used explanatory and descriptive research designs. In addition, qualitative and quantitative research approach was adopted. Questionnaire was the primary data gathering tool for this study, sample of 312 respondents (clients of the company who were motor insurance policy holders) and interview of eic Directors and two middle managers. the above samples, questionnaires were distributed to pertinent respondents. The collected data were analyzed descriptively (frequency, percentage, mean and standard deviation) and inferentially (correlation and regression analysis) processed through statistical package for social science (SPSS) version 20. The study examined between Motor Insurance Service Quality dimensions (tangibility, assurance, responsiveness, reliability and empathy) and customer satisfaction. The research finding indicate that except responsiveness all others motor insurance service quality dimensions (tangibility, assurance, reliability and empathy) have statistically positive effect on customer satisfaction. This is confirmed by both regression and correlation result. According to regression result, reliability had greeter effect customer satisfaction in North District of motor insurance provision. Indeed, reliability and assurance have statistically moderate and positive significant effect on customer satisfaction. Moreover, empathy and tangibility have statistically significant positive effects on customer satisfaction. However, tangibility has insignificant effects on customer satisfaction. On the other hand, responsiveness has statistically negative significant effect on customer satisfaction with the value of β= -0.232. These results are agreed with the correlation finding. On the other hand, open-ended questionnaires and interview finding; the claim handling and service provisions of the insurances was relatively improved and attract customers. However, absence of timely responses/ services and crane, poor systems and its service provision, absence of modern technology (crane) and promises and action gap were the other challenge and reducing factor for customer’s satisfaction in North District. Based on the findings of study, researcher recommend that, except responsiveness the increments of all others motor insurance service quality dimensions have positive effect on customers satisfaction Further, the researcher recommend that, to enhance customer satisfaction all responsible bodies or service providers are required to cooperate and establish smart systems and provide quality services timely. |
