Mumbai: State-owned Life Insurance Corporation of India (LIC) will send its renewal notices by text messages to its policyholders instead of physical notices, according to corporation sources, who added that the shift will take place for each policy where the insurer has updated its customers' mobile numbers. Every policyholder received text alerts from the insurer, saying that from March 2019, the insurer will send reminders as well as premium-due intimations via SMS.
Text messages are a more effective form of sending out notices as policyholders receive alerts right away, LIC officials said, adding that it will be possible to send multiple reminders this way. Further, LIC, which has over 28 crore policies in force, can save on postage and stationery expenses through the move.
LIC, however, has a minute percentage of its customers' mobile numbers, unlike banks. The percentage of policyholders whose phone details are available would be in single digit, sources said.
Since customers are required to pay the renewal instalment each year or provide standing instructions, insurers are not required to send renewal notices to the policyholders, Insurance Regulatory and Development Authority of India (IRDAI) sources say.
Various private sector insurers remind their customers through text messages, emails and reminders from call centres, instead of sending physical notices.
Additionally, LIC will be using text messaging for grievance redressal.