Life Insurance Corporation of India (LIC), the country’s largest insurance company, has removed the credit card payment option for online insurance premium payments.
This change has affected many policyholders who regularly used credit cards to pay their premiums through LIC’s website.
Now, customers can make online premium payments only through UPI, debit cards, and net banking.
Those who prefer offline payments can still pay their premiums through LIC agents or by visiting LIC branch offices.
Why Did LIC Remove the Credit Card Option?
According to LIC agents who spoke anonymously, the decision is linked to the convenience fee charged by the payment gateway company.
Earlier, online premium payments on LIC’s website were processed through BillDesk.
The payment gateway reportedly charged LIC a fee for processing credit card transactions.
Although LIC’s website mentions that a convenience fee applies to credit card payments, the company itself was bearing this cost.
On the other hand, payments made through UPI, debit cards, and net banking do not attract any such charges for LIC.
Sources say that disagreements between LIC and BillDesk over these convenience fees led to the removal of the credit card payment option from the portal.
Credit Card Option May Return
Another LIC agent said the company is currently in discussions with a new payment gateway provider.
If these talks are successful, the credit card payment option could be restored for online premium payments in the future. However, there has been no official announcement from LIC yet.
Live Hindustan contacted several LIC officials for a response, but no official statement was available at the time of publishing.
The report is expected to be updated once LIC shares its official clarification.
For now, policyholders who pay their premiums online will have to use UPI, debit cards, or net banking until further notice.
