Mahatma Gandhi Community Forum

A new burden on LIC customers!

Life Insurance Corporation of India has started levying extra charges for premium payment done through online.

For Debit cards, it is 12.36% as Convenient Charges + Service tax. For Credit cards, it is 18%.

This would be great burden on customers who pay premium online. For Rs.1000/ of premium amount through Debit Card, one has to pay Rs. 123.60/- as additional charges. And for the same amount through Credit cards, it is Rs. 180/-

It is unethical and unwarranted practice of collecting convenient charges from the customers for paying bills through online as it might lead to other online billing systems to follow the suit. Railway reservation, Bus tickets, Electricity Bill, Phone Bill, Wealth Tax, Water Tax and many more payments made to various departments are also subjected to heavy collection of additional charges.

Internet is a common medium of communication and conducting transactions. Government departments and organizations are using it for bill payments for the convenience of not only the customers but to themselves as well. Collecting extra charges for using Online payment system is a devastating move by the government and a big downside for the technologizing the service providing systems.

Departments must understand that collecting bill amount is their duty, not a service.Providing the billing system online is at the convenience of their operations, not for the convenience of customers.

By the end of this month, a petition is to be filed to the concerned authorities for revoking these additional charges.

Support from the forum members is highly appreciated.

-Balamurali Balaji
Techno-Gandhian Forum

Views: 7825

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Comment by Balamurali Balaji on February 18, 2014 at 2:08

A meeting was held with the Regional manager and CRM officials at the LIC of India Chennai on 8th of this month.

We thank LIC of India for prompt response to our Petition to remove extra charges for paying premium online in LIC of India website.

Now, the online website of LIC has undergone some changes so that customers could not use the page which deducts extra charges and service tax for paying premium.

We hope that the website will be improved further as to remove the external banks’ gateway mechanism which collects exorbitant fees. We also expect that LIC of India would come up indigenous payment gateway system to collect premium and premium only.

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