Patym bags bid to manage LIC’s digital payments

The Life Insurance Corporation and Paytm have partnered to provide policyholders with an e-payment option. Paytm is now an option for LIC policyholders to pay their premiums through. You may use Paytm to pay your policy premium or some other policy-related charge.

When more of its payments transition to digital forms, the insurance company has found a new agreement with Paytm after previously partnering with another payment gateway. The new contract calls for a more efficient payment mechanism, a broader range of payment options and the inclusion of more participants in payment channels.

LIC policyholders will be eligible to pay their premiums using digital payments app, Paytm. LIC will be able to receive all forms of collections, including remittance collections from insurance agents in a digital format.

The insurance company was looking for an end-to-end approach that would include all types of collections, including remittance of collections from insurance agents, as well as premium payments. Some of its operations may be automated as part of the mandate.

Following the pandemic, LIC has witnessed an increase in digital payments. The company collects Rs 60,000 crore in premiums across digital channels, which does not include payments made through banks. It currently processes about 8 crore digital transactions, with that amount projected to skyrocket in the coming years.

According to a Times of India report, 17 payment gateways competed for LIC's digital payment facility, with Paytm winning the contract due to the its extensive involvement in multiple payment services. The latest deal would simplify the payment process by including additional payment options and including more actors such as wallets and banks.