LIC agents to get PoS machines for premium collection

LIC is also looking at initiating Aadhaar-linked digital transactions to help policy holders in the rural areas to avoid payment of premium in cash, says an official


LIC is planning to provide Point of Sale machines to its lakhs of agents who collect around Rs1.5 lakh crore premium annually. Photo: Rituparna Banerjee/Mint
LIC is planning to provide Point of Sale machines to its lakhs of agents who collect around Rs1.5 lakh crore premium annually. Photo: Rituparna Banerjee/Mint

New Delhi: In a big push to digital payment drive, Life Insurance Corporation (LIC) is planning to provide Point of Sale (PoS) machines to its lakhs of agents who collect around Rs1.5 lakh crore premium annually.

“As part of the strategy for the less cash economy, LIC is also gearing up for providing PoS machines to its few lakhs active agents initially so that premium collection can be done in digitally,” a senior official said.

The state-owned insurance behemoth is also looking at initiating Aadhaar-linked digital transactions, the official said, adding that this will help policy holders in the rural areas to avoid payment of premium in cash and cash handling burden of agents would come down significantly.

ALSO READ: LIC’s total premium income grows 12.43% in nine months of FY17

To begin with, LIC plans to provide PoS machines to about 1.5 lakh agents that would be ramped up in the future, the official added. At the end of March 2016, there were 20.16 lakh agents of Life Insurance Corporation of India.

The finance ministry has also asked LIC to set up a robust cyber security cell so that there cannot be any cyber fraud. Finance minister Arun Jaitley had announced a raft of measures including discounts on online payments for insurance policies, rail tickets and highway toll charges as the government looked to promote digital cash post demonetisation.

As much as 10% and 8% discount has been offered in case of general and life insurance for buying a new policy or paying premium online via PSUs websites. LIC posted a 12.81% growth in total assets to Rs24.42 lakh crore during 9 months ended 31 December 2016, compared to Rs21.64 lakh crore in the same period the previous year.

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