The new agreement with Paytm needs a more stable payment process, a wider variety of payment options, and adding more players (banks, wallets, etc.) in payment channels.

Sources told news channels that there is a total of 17 payment platforms that had bid proactively for LIC’s agreement.

Paytm’s aptness to ride numerous payment services worked in its favor since different companies were leading in specific segments such as cards or UPI.

Life Insurance Corporation has seen an upsurge in online payments following the COVID-19 pandemic. The PSU insurer collects premiums worth INR 60,000 crore via digital mode, which doesn’t include payments made through banks.

LIC sees approx. 8 crore digital transactions, a figure likely to go up strongly. The state-owned insurer had looked for an end-to-end solution, not only for premium payments but for all kinds of collections comprising remittance of collections by insurance agents.

Last year Mr. Raj Kumar (CEO/Whole-Time Director at LIC) said, Life Insurance Corporation has got a 128% growth in online sales of insurance policy Year-over-year (YOY) during this fiscal year up to October, and settled maturity claims and survival benefits worth more than INR 57,000 crore.

In 2020, payment channels like Google Pay and PhonePe have seen ‘a huge response’ during the pandemic with more than 42% of the premium being collected via the digital route.

LIC recorded an investment income of more than INR 1.49 lakh crore, registering a growth rate of 20%. It had booked INR 25,000 crore in profit via stock trading.

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