Now, advisers need not have to follow up with their clients for LIC premium payments.
LIC Nomura Mutual Fund along with Life Insurance Corporation of India (LIC) has announced the launch of its ‘Auto Premium Payment System (APPS). The system will enable policyholders of LIC to pay their premium through their LIC Nomura MF folios.
APPS will be available only for the investors who have folios in LIC Nomura’s liquid fund, saving plus fund or and income plus fund. No exit loads will be charged if the payment is remitted for LIC premium. Like ECS, policyholders have to give mandate to the fund house for the deduction of payment. No charges will be taken for using this facility.
“One of my friends forgot to pay his premium resulting in his policy getting lapsed. To help our investors avoid the same fate, we decided to provide a service through which policyholders can pay their premium without any hassle. The platform will be jointly operated by IT team of LIC and R&T agent. Hence, the service is free for us and we are passing on the benefits to our investors. We are hopeful that APPS will receive a good response from the investors. In fact, we have received around 2000 mandate applications for the service,” said Nilesh Sathe, CEO, LIC Nomura MF.
Ranbir Datt, CMO, LIC Nomura said that the investors can also pay premium of their spouse and minor children through this facility.
Speaking to journalists at the press conference, K Ganesh, Executive Director (CRM), LIC, informed that around one percent of LIC policies lapse every year due to non-payment of premium. AAPS will help policyholders to pay their premium on time thereby reducing the chances of policy lapse, he added.
