Life Insurance Corporation of India plans to cover over five lakh consumers in southern districts under its electronic transfer policy this year.
Following a directive from the Ministry of Finance, it has asked its branches to collect National Electronic Funds Transfer (NEFT) mandate from all the 25 crore policyholders/Assignees/claimants in the country in a pre-designed format. M. Govindaraju, Senior Divisional Manager of Madurai division, told The Hindu that Madurai division had 35 lakh consumers, all of whom would gradually be covered under NEFT. Nearly 25,000 had been covered.
This division comprises 25 branch offices and 16 satellite offices in the six southern districts of Madurai, Dindigul, Sivaganga, Ramanathapuram, Theni and Virudhunagar.
All LIC branches would be collecting NEFT mandate from policyholders, assignee and claimants in a pre-designed format as it was now mandatory for receipt of policy payment. A mandate has the facility to collect the bank details for six policies at a time. For more than six policies, a separate mandate form would be used.
On benefits of NEFT, he said that the policy holder/claimant would get the sum credited into their account on the due date irrespective of the location of bank ensuring that the consumer did not have to collect cheques and present them to the banks.
Besides being faster and secure, this method would ensure that there were no ‘undelivered cheques.’ Further, alerts through SMS and e-mails would also be sent.
“As each payment would generate an unique transaction reference number, consumers could easily track their transactions,” he added.
NEFT facilitates transfer of funds from one account of any bank branch to another.
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