LIC is one of the largest life insurers in India that has started issuing survival and maturity benefits directly to your registered bank account. In 2012, LIC has also introduced the facility to register NEFT online where it is mandatory for all the policyholders to submit the NEFT mandate form if they want to receive any kind of payment in their bank.Read more
LIC offers a wide variety of insurance plans ranging from the pure protection plan to savings plan that meet the policyholder’s requirements. The sum assured amount provided by the life insurance protects and secures your loved ones from any financial burden in case of your unfortunate demise. The claim settlement ratio (CSR) is another important factor that measures the percentage of life insurance claims which is settled by an insurance company during a financial year. LIC, being the biggest company in the insurance sector has a claim settlement ratio of 96.69% for 2019-20 FY, indicating a hassle-free and smooth settlement process.
Earlier, till 2021, LIC was offering maturity or survival payments through other modes such as cheques. But now the existing mode is NEFT i.e., the electronic payment mode that credits the payment directly into a bank account. As per LIC guidelines, the buyer is not allowed to use any other mode of payment other than NEFT. The electronic payments of maturity or survival benefits are settled using the NEFT that credits all money to your registered bank account. All the assured must submit the NEFT form to receive payments. However, earlier the submission of the NEFT mandate form was offline. But avoiding visiting the branch specifically during COVID times, LIC introduced an online facility to register NEFT for receiving benefits.
NEFT is an electronic system that transfers all funds from one account to another in any bank across the country. This is a simple, secure, and cost-effective system. To make a smooth NEFT transfer of payments, the registered bank account should also be enabled in the accounts of their customers. This entire system is being operated by the RBI i.e., Reserve Bank of India.
Previously, customers had to visit their nearest LIC home branches and make a request for a cheque. After the payment of the settlement via cheque, customers have to again visit their respective banks to transfer that credited amount. The earlier process was time-consuming. Now the electronic fund transfer facilities are quite convenient and offer various benefits for the customers:
Customers are required to fill NEFT mandate form to enable NEFT for their easy settlement of payment. This form can be downloaded from LIC’s official website. Following details are also requested by LIC in the NEFT process:
If you are a policyholder of LIC and still have not registered for NEFT, then you are required to do that immediately. Here are the steps to register LIC NEFT mandate form through online mode:
After downloading the NEFT form, fill in all the required information. There are some additional documents required to be submitted by the policyholder along with your NEFT form:
LIC has recently launched the NEFT method in 2011 with which you can receive maturity or surviving benefits online directly to your respective bank account. NEFT is easy and convenient. You can register for the NEFT mandate online through LIC’s official website and can also track the status of your application. Since this system requires electronic fund transfer, customers should be aware of all the terms and conditions and must take care while filling in their account details.
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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