LIC will soon allow payment of premium via mobile phones

Life Insurance Corporation of India (LIC) said that its policyholders will soon be able to pay their insurance premiums through mobile phones.
In an interview with the Wall Street Journal, TS Vijayan, LIC chairman, said, “We are in discussion with two to three banks; if you have a bank account with them, through mobile you will be able to transfer (funds).” He expects to roll out the facility some time this year.
Till now, only account holders of Corporation Bank, in which LIC owns a stake, can use mobiles to pay premiums on select LIC policies. This facility was introduced two years ago and is available to customers who sign up for the bank’s mobile payment service.
The customer needs to send a text message to a given number and once the payment gateway verifies his or her details from LIC, the premium is deducted from the customer’s account. This service does not allow payment for unit linked insurance plans.
LIC had started using information technology way back in in July 1995. Its first information and communication technology (ICT) enabled offering to its customers was an online service through which customers could receive immediate policy status reports. Further, their payments were promptly accepted and get they could get revival and loan quotations on demand.
After that, the company started using interactive voice response (IVR) functions to enable customers to receive information on the next premium due, policy status, loan amount, maturity payment due, accumulated bonus etc. through their mobile phones in 59 centres across the country.