Life Insurance Corporation of India (LIC) policyholders having bank account in other banks apart from Corporation Bank, in which LIC owns a stake, will be able to pay their insurance premiums through mobile phones. Till now the account holders of Corporation Bank were able to pay premiums on select LIC policies through mobile phone.
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 said most probably the facility be rolled out some time this year.
With Corporation Bank, LIC tied-up for this facility two year ago and the customers who sign up for bank’s mobile payment services are able to use this facility.
The customer sends 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. Payment of unit linked insurance plans cannot be made through mobile phone.
In July 1995 LIC introduced its first information communication technology (ITC) facility by offering online service to its policy holders. Through this service policyholders can receive immediate policy status reports, their payments are promptly accepted also get revival and loan quotations on demand.
Then, the company started using interactive voice response (IVR) service which enabled customers to get information on the next premium due, policy status, loan amount, maturity payment due, accumulated bonus etc. through their mobile phones in 59 centers across the country.