Life Insurance Corp. of India policyholders soon will be able to use their mobile phones to pay their insurance premiums, a spokesperson for the government-owned insurer tells PaymentsSource.
The insurer is in talks with at least two banks to set up the service, which would access their customers' bank accounts, according to the spokesperson. "Currently, we have a facility where accountholders of Corporation Bank Ltd. can use their mobile phones to pay for premiums on a few policies," he adds.
Customers first must send a text message to a predesignated number to register for that service. After Life Insurance verifies the customer and his insurance details, the insurer deducts the premium payment from his account.
Life Insurance holds a 26.34% stake in Corporation Bank. Together they also operate a joint venture called LIC Cards, which issues credit cards in India.
While Life Insurance is responsible for marketing and distribution of the card, Corporation Bank manages the program and financial services.
This story has been reprinted with permission from American Banker.