LIC customers can now breathe a sigh of relief as now they can auto pay their future renewal premiums for their various LIC policies by adding the insurance in the list of billers. So, no longer you will have to worry about remembering the due date for your policy premium payment or even stand in the queue to make the deposit.
For the service, you will not be charged any additional transaction charges but maximum premium amount inclusive of GST and late fee in case if any cannot exceed Rs. 50,000 per transaction.
"To enhance the facility of online payment of renewal premium to LIC policyholders, a new option under the generic term "INSTAPAY Service", which is available across all banking platforms in India, has been integrated through the existing Bill desk supported platform," said LIC of India in a statement.
Here is how to make the auto-payment for LIC premium:
1. Log in to your bank's website or download its mobile app and log in
2. Once logged in, select the option saying 'Pay Bills'
3. Now among the available options for Billers, select 'Insurance' as the option
4. In the drop down menu, select LIC as the biller
5. Herein you need to enter the insurance policy related details such as policy number, amount, e-mail address, mobile number. And in respect of the policy premium amount due, the details will be retrieved from the LIC portal and displayed including premium amount due
6. And at this step, you can choose the 'Auto Pay' option to free yourself from the burden of keeping note of when the next premium due date is falling.
7. Also, for the premium that will get auto-debited you make choose to get the receipt in either physical or electronic mode.
8. And the premium for the policy will be tendered from the enabled net banking account of the LIC policyholder, once he or she gives his go-ahead by selecting the 'Submit' option.
A major benefit that comes with the Instapay facility is that some of the banks even provide the benefit of delayed premium payment by taking end of grace period as the due date and auto pay the premium 7 days before end of the grace period.