The Hindu Business Line : Insurers get innovative on renewal payments

Kolkata, Sept. 7 In a bid to provide better customer service in a competitive environment, life insurance companies are focusing on innovative methods of renewal payments.

While private players have already launched systems such as e-payments and payment through mobile phone SMS, the biggest player Life Insurance Corporation of India is fast catching up.

“A good number of our customers are now opting for the electronic payment system ” said Mr K.S. Nagnyal, Regional Manager, Marketing, LIC, pointing out that the system offered facilities such as transactions through electronic clearing systems in tie-ups with leading banks, payments through SMS, customer portals and by credit cards at ATMs of Corporation Bank and Axis Bank.

Interactive voice response

In ICICI Prudential Life Insurance, according to its Executive Vice-President (Customer Service and Technology), Ms Anita Rai, nearly 65 per cent of renewal premium payments are made through different electronic means, 20 per cent through drop boxes and the balance in cash. The company is planning to launch, for the first time in the country, a system of paying premiums by logging on to computerised interactive voice response facility without having to disclose credit card numbers or policy details to the call centre executive, she said.

Max New York Life is planning to set up automated kiosks in its branches and bancassurance offices to facilitate payments through credit cards, said Mr Sanjeev Mago, Executive Vice-President. Mr Vikrant Ramchandran, Head (Marketing), Tata AIG Life, said, “Though the success of new systems would depend on perceived convenience of the customers, the rate of change is already phenomenal.” It also plans to tie up with 5,000 post offices soon, he added.

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