Life Insurance Company Limited (LIC) is an Indian insurance company. The Life Insurance Company has provided a number of facilities and services to its policyholders as per requirements.
Headquartered in Mumbai, Life Insurance Company Limited (LIC) has become the largest insurance company in India with an asset value of 1,560,482 INR. A fusion of 245 insurance companies and societies brought about the inception of Life Insurance Company Limited (LIC). Founded in 1956, today LIC has 2048 computerized offices around the country, 8 zonal offices, 113 divisional offices, 1381 corporate and satellite offices.
Life Insurance Company Limited (LIC) grants various policies to its policyholders as per their needs and requirements. Based on the policy choice every policyholder must pay a set premium amount. The premium amount will be saved and returned with certain percentage of sum assured and interest on maturity period. However, there is a time limit set for every payment of premiums.
These premiums can be paid 30 days in advance from the last date of premium payment period of the policyholder. In case of delay in payment a ‘grace period’ is provided to the policyholder where they may pay their premiums to avoid further delaying and unnecessary renewal of their policy. In case of delays, online payments make it easier for late premium payers.
Life Insurance Company Limited’s (LIC) Online Payment Mode
The LIC has made payment of premium a lot easier by introducing online LIC payment method. A policyholder may register for online account. Once registered, it becomes more feasible for the policyholder to achieve and attain their goal by paying premiums online without having to move from homes or offices and wasting time.
However, the IRDA (Insurance Regulatory and Development Authority) has banned LIC insurance company from allowing online electronic payments for 30 days in advance due to some cases of money laundering. The same has been applied for other life insurance companies as well. Although IRDA (Insurance Regulatory and Development Authority) has issued this ban, LIC (Life Insurance Company) accepts online LIC payments for those policyholders whose premiums are payable quarterly, half-yearly and yearly based premiums.
Qualifications And Registrations For Online LIC Payment
A policyholder is allowed online payment for LIC policies that are acquired in cities that are covered by LIC’s ‘wide area network’ and ‘metro area network’. Furthermore, the online LIC payment should be made quarterly, half-yearly or yearly basis only. A policyholder may not make online LIC payment against monthly premium payment policies.
To register for online LIC payment mode, one has to provide their LIC Policy Number and the premium payment amount to the BillDesk. Once these details are provided, the BillDesk will send the details to LIC for verification and confirmation of registration. LIC permits online LIC payments only against official grounded policies. One’s registration for electronic payments could be declined due to following reasons:
- In case the policy opted by the insurer is not available online then online payments cannot be made.
- The request for online payment is declined if the premium payment differs.
- The request for online payment can be declined in case if policy is not active or in force.
- In case the policy is in maturing period then the online payment request may be declined.
- Only quarterly, half-yearly and yearly modes are accepted online. Any mode apart from these are declined for electronic payments.
- In case of billing is suspended, the request for electronic payment is declined.
The BillDesk informs the insurer if they are eligible for online LIC payment mode based on the above-mentioned clauses.
Insurance Regulatory and Development Authority (IRDA) Directions On Advance Premium Payments
In 2014 The Insurance Regulatory and Development Authority (IRDA) also permitted policyholders to be able to pay the monthly premium 3 months in advance on the date of the policy commencement. The Insurance Regulatory and Development Authority modified the linked and non-linked insurance products regulations to permit advance premium payment. But the advance premium payment shall be permitted only within the financial year for the premium due in the same year.
If the advance is paid for the upcoming financial year, then the insurers may collect the same for a period of 3-months maximum in advance of the due date of premium payment. The premiums collected in advance can be adjusted on the due date of the premium payment period. Furthermore, the commission will be paid only after the adjustment of premium on the due date.
The premium may be accepted 30 days before the due date as well. However, in case a policyholder succeeds in acquiring the online LIC payment mode then the insurer will be granted 60 days more to make the payment.
A policyholder may pay up to 50,000 INR cheque or Demand Draft in case of advance premium payment. This amount is the limit set by the Insurance Regulatory and Development Authority (IRDA).