Until 2011, LIC had been issuing Cheques for paying policy owners upon maturity of their insurance plan and for claims. However, at this time, the only option to receive LIC fund payment is NEFT, which is an online money transfer system in India. Customers need to submit the details of their Bank account to LIC through NEFT form in order to allow the insurer to send e-payments.
Process to get LIC Policy survival benefit/maturity/claim amount online through NEFT
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. Read the whole process below.
- LIC usually informs the customers regarding the imminent maturity of policies through the regular postal mail. The screenshot you see above is the letter I got from LIC.
- All the details of your LIC policy, including the amount you’re about to receive, the due date for fund transfer, etc. are there in the document.
- As you could see, a sample of the NEFT mandate form is there towards the end of the mail from LIC.
- Check it and prepare all Information required for processing your claim account.
- Take this letter and mentioned documents to the nearest LIC office.
- They will give you a copy of the NEFT form upon verifying the details. Fill it and hand-over to the officer for online payment of the maturity amount.
LIC sends the above-given mail to the address given on your original policy document. Hence, make sure you update your address in the LIC records if your policy is nearing maturity. It takes decades for the maturity and payments from LIC, and most people change their locations in this course. They may not get payment alert if the address is different from what LIC have in the file.
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 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.
You may get an SMS confirming your NEFT registration after a few days.
Is it possible to check LIC NEFT payment 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. Neither there is an online option 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.
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.