LIC had been settling policy claims and maturity payments through cheques until 2011. However, these days, they use NEFT (National Electronic Fund Transfer) to transfer survival benefits directly to the policy holder’s bank account. The customer needs to fill in the LIC NEFT mandate form and submit it to a policy service center to receive the funds online.
Process to get LIC Policy survival benefit/maturity/claim amount online through NEFT
LIC sends an initiation letter to the customer’s address when a policy reaches its maturity. It includes details like fund value, payment date, and the things LIC needs to process the maturity amount through online transfer. Only the customers who are eligible for a bonus or completed the full policy term get this document. You may not get receive communication if you are surrendering or claiming any benefit during the policy term. In both cases, customers need to submit the NEFT mandate form to get the settlement amount directly to their bank account.
Make sure you update your address in the LIC records if your policy is nearing maturity. As you know, for LIC, it takes decades for maturity and getting survival benefits. Most people change their locations in this course. They may not get payment alert if the address is different from what LIC has in the file.
This letter has a format of the NEFT mandate form attached to its end section, just as shown in the screenshot. But this is not the one you are going submit at the LIC Office. You can get a printed copy of the NEFT application form the local LIC office mentioned in the mail, fill and return it there itself. Representatives at the LIC Office then verify your details to link and update the bank account to your LIC customer profile.
Download LIC NEFT mandate form [PDF]
Alternatively, if you have a printer, you may download and print the official LIC NEFT mandate form in PDF format, NOW. For those who own a group policy or a pension scheme, the application for LIC online fund transfer is different. GET IT HERE. We also have the LIC NEFT form in Excel format if you need that version (LINK). Enter the required details in the form as applicable, and submit it to the LIC branch for registration.
Documents to submit for receiving online fund transfer from LIC of India.
The following are the information LIC requires in the NEFT form. Do not to miss any section.
- Name of the LIC policyholder and number.
- Bank Name, Account Number, type of account, IFSC code and location.
- Mobile Number and e-mail ID for sending the status of online fund transfer.
- A cancelled cheque leaf and a copy of PAN card (if fund value is above 50000 INR).
- Medical/Death certificate and policy document in case of a claim.
Is it possible to check LIC NEFT registration status
If I say from my experience, there won’t be any further updates from LIC regarding your fund transfer after submission of the form. Sometimes you may get an SMS “Dear policyholder we have registered your policy no under NEFT,” after a few days. Unfortunately there isn’t any is an online website check LIC NEFT status. Nevertheless, it is sure that you will get the maturity amount credited to your account in time.
All you can do is keep checking the status of your bank account and statements. I got the policy amount a day before the maturity date. The screenshot given above is the confirmation of online payment [NEFT] from LIC.
The advantage of NEFT payment over Cheque is that you get assured online payment on or before due date. From a customer’s point of view, it’s like submit the NEFT form and forget. You don’t need to visit your bank; LIC will do the rest.
Disadvantage of LIC’s current implementation of NEFT based payment system.
LIC of India introduced maturity payments through NEFT, nearly seven years ago. Nowadays NEFT itself is an old system considering that we have UPI, IMPS and other modes for fund transfer. However, the company still requires the customer to go to their office to submit the NEFT form. When I contacted LIC, they said, they have this system in place to counter-check the signatures. It will have been far better if they have enabled a facility for filling NEFT form through their web portal. Especially when they already have a well-built system for premium payments and checking policy status online.