Life Insurance Corporation of India Ltd. policyholders soon will be able to use their mobile phones to pay their insurance premiums.
The insurer is in talks with at least two banks to set up the service, which would access their customers' bank accounts, according to a spokesman for the Mumbai company.
The company already offers a similar service for customers who have bank accounts at Corporation Bank Ltd.
Customers will be able to set up the service by sending a text message. After Life Insurance verifies the customers and their insurance details, the insurer will deduct the premium payments from their bank accounts.
Life Insurance holds a 26.34% stake in Corporation Bank. Together they also operate a joint venture called LIC Cards, which issues credit cards in India.