A Lumbering Giant Is Going Snazzy

LIC set to issue SMS alert on premiums in tech drive

The next time your mobile phone beeps alerting you of an incoming message, it may not be your broker, or your mobile service provider.

It just well may be the Life Insurance Corporation of India (LIC) alerting you that your insurance premium is due in the next 24 hours.

Yes, the state insurer is becoming technology savvy.

As part of its information technology upgradation drive, LIC proposes to use short messaging service (SMS) to communicate with its over 12 crore policyholders, its eight-lakh agency force and for internal office communication.

The state life insurer proposes to alert its policyholders and agents on premiums due, inform them of bonus declaration as well as broadcast its latest offerings through SMS.

At the same time, offering two-way communication, it will also give premium quotations and calculations based on age and size of insurance cover.

LIC chairman S B Mathur pointed out that this has become a cost-effective way of communications at just Rs 1. This as against Rs 3 for a phone call or Rs 2 for a post-card.

Most private sector insurance companies have not as gone to this extent of IT advancement as far as reaching out to policyholders is concerned.