Life Insurance Corporation is now sending all the payment to it’s policy holders through NEFT payment system. The payment under your policies will be credited directly to your Bank account through electronic mode of payment only. For this purpose, you require to submit your bank details to LIC for making the policy payment through NEFT (National Electronic Fund Transfer). The details of NEFT are described below. Submit your NEFT mandate form (You can download the NEFT form from the link given below) with a canceled cheque with name pre-printed on it or Copy of front page of your bank passbook mentioning IFSC code and bank account no. After the Govt. of India’s orders LIC has stopped making payment through cheques, submit your bank details now to avoid unnecessary delay in you payments. You can submit it in any nearest branch or LIC customer zone.
What is a NEFT ?
It is a nationwide system that facilitates to transfer a fund from one account of any bank branch to another account of any bank branch. This system is operated by Reserve Bank of India. For transfer of funds the participating banks have to be NEFT enabled. At present around 74000 Banks all over India are participating under NEFT system. For details please refer to RBI website
Advantages of NEFT system for LIC Policy holders / Annuitants
- The policy holder / claimant will get the credit in his own account on the due date of payment irrespective of the location of his bank.
- NEFT will ensure speedier and secure mode of payment.
- There will be no extra charges to the policy holders / claimant.
- SMS and E-mail alerts may also be provided wherever the policy payment is made to the policyholder/ claimants’ account through NEFT.
- Each payment from LIC through NEFT will create one UTR(Unique Transaction Reference) number. If there is any problem in credit to the account, policy holders / claimant can confirm from their bank by quoting this UTR no. In other words it is easy to track a transaction of NEFT, using UTR number
Important information to the Policy holder / claimants opting for NEFT
- All the items mentioned in the mandate form should be filled correctly. This mandate can be used for 6 different policy numbers of the same policyholder..
- The completed mandate for NEFT should be sent to Branch, servicing at least one of the policies, listed in the mandate.
- The policy holder / claimant should also submit either a cancelled blank cheque leaf or the photo copy of the page of the passbook / cheque book where details of the Bank account are mentioned.
- If within two days of the due date, the amount is not credited to your Bank Account, then you may contact the branch where you have submitted the NEFT mandate.
- The account of the policy holder / annuitant should be operational at the time of receipt of policy payment.
- Before submitting the mandate form, the policyholder/ claimant should confirm from his bank that it is NEFT enabled.
- Policy holder’s/ claimants’ name under the policy should match with that of Bank A/c, else it is likely to be rejected.
- NRI accounts are guided by FEMA regulations; LIC has decided not to include NRI accounts for fund transfer. So policy holders / annuitants are requested not to submit their NRI account details.
- After submission of NEFT details, if there is any change in bank details then fresh mandate form will have to be submitted.
- If you are getting the annuity payments through ECS mode from our IPP cells, you may opt for payment by NEFT by submitting the mandate or continue to receive the annuity payment in the existing ECS mode.
Please CLICK HERE to download the NEFT mandate form