Life insurance companies see high growth in non-cash premium payment

People in rural areas, small towns are switching to cashless modes of payment, says industry

Life Insurance companies have witnessed a robust rise in digital payment of premium after the Centre's demonetisation move in November last year. Companies claim that the share of digital payments has risen from 55 per cent to 75-80 per cent since November.

Cash shortage and heightened awareness diverted insurance customers towards cashless payment of premium. According to insurance companies including Canara HSBC OBC Life Insurance Company Limited, ICICI Prudential Life Insurance and Reliance Life Insurance Company Limited, digital payment is higher in urban areas where awareness for digital payment is more.

As per Life Insurance Council data, income