Paying premium just got easier

premium

With technology at their disposal, many financial services companies are offering better modes of payment to customers.

This week, ICICI Prudential Life Insurance launched yet another way of premium payment – through interactive voice response (IVR). The facility uses the same technology that answers your call to most call centres. Pre-recorded messages help you do various things by pressing various numbers on your cell or landline phone.

The facility affords convenience to customers. One need only call up the helpline number, quote his policy number and the premium amount he wishes to pay, though to make the payment, he would need a credit card.

Now, pay insurance premium over phone

MN Srinivasu, who runs technology provider company BillDesk, had told DNA Money earlier, "IVR-based systems are better as here your credit or debit card number is inserted and not read out aloud whereby a leak can happen at the end of the call centre or when someone is listening to the customer's conversation."

'Health insurance premium reduced'

Other insurance companies, too, have lately introduced alternative modes of payment for insurance premium. These include electronic clearing service (ECS), auto debit, net banking, credit card, automated teller machine (ATM) and even SMS, all of which can help cut your dependence on the life insurance agent and avoid the submitting multiple cheques.

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One has to give an instruction, also called mandate in banking parlance, to the insurance company in case of ECS and to the bank for auto debit. ATM payments can be made only though ATMs that an insurance firm has a tie-up with. For instance, Life Insurance Corporation (LIC) has a tie-up with Axis Bank, while SBI Life has one with State Bank of India.

Those not familiar with internet need not fret either. ING Vysya Life, LIC, Reliance Life Insurance, Max New York Life Insurance and ICICI Prudential Life have a facility wherein one can pay insurance premium via SMS.

With mobile phone users in the country shooting up, the mobile channel surely cuts deeper than internet. The number of banks allowing payment via SMS too has increased as the mobile payment companies expand their reach.

Some insurances firms have installed electronic data capture machines at their branch locations where one can swipe their plastic cards and pay the requisite premium.

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However, like in any other service provided by a bank or an insurance company, these new premium-paying facilities can be availed only after registering. In most cases, the registration has to be done only once. It should, however, be noted that facilities such as ECS, payment through Bill Desk and Bill Junction are available only in select cities, while direct debit is available on select banks, varying according to the insurance company.

A few providers, such as SBI Life Insurance and Birla Sun Life Insurance, offer a cheque pick-up for policyholders paying significant amounts of premium. Check if you can use this facility.

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