LIC Premium Payment: 5 Online & 4 Offline Renewal Options
Life Insurance Corporation of India Limited is India’s largest insurance company in India. And with such a widespread customer base, providing hassle-free service is of utmost important and one of them is policy payment during renewal. Although LIC offers multiple options to purchase life insurance policy, the same holds true for making premium payments whether it is fresh or renewal.
LIC premium payment options:
Table below shows all the options provided to the insurance policy holders:
|Online Options||Offline Options|
|LIC Website||Via cash at LIC branches|
|Electronic Clearance System (ECS)||Through LIC agents|
|LICMobile app||Authorized franchisees or collection centers|
|Talktym eWallet||SMS and ATM (only for Corp bank customers)|
|Axis bank & Corporation bank Website|
LIC offers five ways to pay premium online:
- Internet banking: Visit official website of LIC – https://www.licindia.in/ and click on Pay Premium Online link. Three payment options are available viz. credit card, debit card, and net banking. You can either be a registered user or also pay without registering on the LIC website.
- Mobile App: For this you need to download official app – LICMobile on your smartphone.
- Talktym eWallet: Another convenient way to pay LIC premium is through Talktym eWallet. The benefit of using eWallet is one click payment and loyalty points for everytime payment is done. It also saves lot of time. Money is directly debited from your credit card or bank account and you receive transaction reference number as an acknowledgement receipt. Within seven days you can see payment being reflected in your insurance account.
- Electronic Clearance System: Through ECS facility, payment is automatically debited from your bank account on a set date and remitted to LIC. But make sure your bank account has sufficient balance. Otherwise a charge of Rs. 125/- will have to be paid along with late fee.
- Axis bank and Corporation bank: These two banks are authorized to accept LIC premium payment at their specified branches. Corp bank also offers payment through SMS and at ATM.
Details required when renewing online: Every policy holder should keep – policy number, premium amount, Date of birth, mobile number, and E-mail address handy. These details are required for all online payment options explained above.
Life Insurance Policy Renewal – 4 Offline Options:
Access to internet is not available everywhere in India. Since LIC policyholders are spread across the country, online renewal payment becomes difficult especially for people residing in remote places. So for people from these locations, there are various offline premium payment options as follows. This also includes alternate channels of premium collection.
- LIC branch offices: You can also visit any LIC branch office and make payment via cash, cheque, demand draft.
- LIC Agents: You can visit any authorized agents and make the payment in cash or cheque. Agents will then provide signed acknowledgement receipt to the policyholder.
- Authorized partners: You can visit Axis bank and corporation bank and pay LIC premium through cash or cheque. Remittance is then done to LIC via these partners.
- Authorized collection centers: Through official franchised collection centers of APOnline (only available in Andhra Pradesh), MPOnline (only available in Madhya Pradesh), Suvidha Infoserve Pvt. Ltd., Easy Bill Limited. For this, you need to visit the collection centers and pay money via cash or cheque. Money will then be remitted to LIC via these centers. Make sure to collect payment receipt for safer side.
Why take a copy of premium payment receipt?
After renewal payment, make sure to save acknowledgement receipt which acts as an official investment proof under section 80C of Indian income tax act. Also in case of any disputes, this receipt can only help you.
Late payment impact: There might be times, when you fail to make annual payment either due to lack of funds or you forget even in the 30 days grace period. In such cases, LIC charges a penalty of 9.5% of the premium value. For e.g. if the premium amount of Rs. 10,000 is delayed by 3 months, then renewal amount inclusive of 9.5% late fee will be Rs. 10,245.