LIC to pay claims in South via funds transfer system

The settling of LIC’s claims through the National Electronic Funds Transfer (NEFT) system across four States in South India will take off in April, a senior official said.

The move is aimed at reducing the use of cheques in settling claims to avoid delays due to their getting lost or damaged, said LIC Zonal Manager, Mr D. D. Singh.

“We are going live from April. Almost all the 13 divisions of LIC are ready to offer the service (from April onwards),” Mr Singh told PTI.

Earlier, LIC undertook this proposal as a pilot study in Kochi (in Kerala) and also, in some parts of Tamil Nadu.

Following its success, it has been decided to implement it across the south zone, he said.

LIC currently has about 39 crore customers across the four southern States, he added.

Stating that the proposal would ensure “fast” and “secured” process of depositing the claims of a customer, Mr Singh said leading banks from both private and public sector banks have tied up with LIC for this service.

“This is just to ensure accuracy. Today, everybody opts for a bank account and with this system, we will be able to reach the customer directly (for settling the claims),” a company spokesperson said.

On its future plans, Mr Singh said they have planned to issue about 51 lakh policies by the end of this month. Last fiscal, the company issued about 50 lakh polices across all its segments.

“Every year, we grow by 10-15 per cent. This year we are expecting the same,” he said.