LIC asks policyholders to update bank details for easy claim process: Here’s how to register for NEFT mandate

If you are a Life Insurance Corporation of India (LIC) policyholder, you should be aware that claim settlement payments under your policy will be credited straight to your bank account via an electronic form of payment. So, policyholders should make sure that the correct bank details are updated with LIC, as the life insurer will need your bank account information to make the policy payment via NEFT (National Electronic Fund Transfer).

Note that LIC will be unable to accept any other method of payment for the policy payment, such as a cheque, states the LIC website. According to a latest advertisement by LIC, the insurer is asking its policyholders to update bank details to make the claim process easy. Here are details mentioned in advertisement:

• Please check your policy document for the Maturity date/Survival Benefit date
• Please contact any Branch with details
• Provide Bank account (NFT)details. NEFT Mandate form is available in all offices or can be downloaded from LIC website under Download forms.
• NEFT details can be downloaded online
• Submit claim discharge forms and policy document
• Submit KYC and Update- Residential Address, Phone/Mobile No, Email ID etc.
• Advantages of NEFT system for LIC Policy holders/Annuitants

According to LIC website, here are the advantages of NEFT
a) Regardless of where his bank is located, the policyholder / claimant will receive credit in his own account on the due date of payment.

b) NEFT is a faster and more secure method of payment.
c) There will be no additional fees for policyholders or claimants.
d) Wherever the policy payment is made to the policyholder/claimants' account via NEFT, SMS and E-mail alerts may be sent.
e) Each LIC NEFT payment generates a unique UTR (Unique Transaction Reference) number. If there is a difficulty with credit to the account, policyholders / claimants should contact their bank and ask for confirmation using this UTR number. In other words, with a UTR number, it is simple to follow a NEFT transaction.

How to register LIC NEFT Mandate online?
Step 1: Visit the official website of LIC
Step 2: Login LIC customer portal using your login credentials.
Step 3: Click on pop-up that says, 'To use the NEFT facility, go here.' Or Click NEFT registration present under the tab Select ‘Service Request’
Step 4: Click on the Proceed tab
Step 5: Select the registered policy number and choose the option ‘Proceed’
Step 6: Enter OTP to validate the details provided by you.
Step 7: Enter the Name and branch of the bank, IFSC code, type of account, and PAN number. Click on tab ‘Save’.
Step 8: A pop-up ‘Data Saved Successfully’ will be displayed. Download the NEFT form by clicking on ‘Generate form’.
Step 9: Fill the form. Scan it and upload it.
After uploading the document, the system shows a notification indicating whether the upload was successful or unsuccessful. By clicking on 'Track Request Status,' you can also keep track of the NEFT mandate's progress. A message will be sent to you once your registration is complete.
If you are receiving annuity payments through ECS, you can choose to receive them via NEFT by submitting a mandate, or you can continue to receive them via ECS.

Important information to the Policy holder/claimants opting for NEFT

• The completed NEFT mandate should be sent to the Branch, which should service at least one of the policies listed in the mandate.
• The policyholder/claimant must also submit a cancelled blank cheque leaf with their name and account number printed on it. If the name and account number are not mentioned on the cheque leaf, a photocopy of the page of the passbook containing the details of the bank account must be submitted along with the cancelled cheque leaf.
• If the amount is not credited to your bank account within two days of the due date, you may contact the branch where you submitted the NEFT mandate.
• At the time of policy payment, the policy holder's or annuitant's account should be operational.
• Before submitting the mandate form, the policyholder/claimant should confirm with his bank that it supports NEFT.
• The policy holder's/claimants' name on the policy must match the name on the Bank A/c, or the policy will be rejected.
• FEMA regulations govern NRI accounts; LIC has decided not to accept NRI accounts for fund transfers. As a result, policyholders and annuitants are asked not to submit their NRI account information.
• If the bank details change after submitting the NEFT details, a new mandate form must be submitted.