Life Insurance Corporation announced on Thursday an alliance with UTI Bank to provide annuity debit cards to its customers for disbursement of annuity and pension payments.
LIC, which has 75 per cent market share in the insurance segment, will offer annuity cards to its 1.75 lakh pension customers in Mumbai on a pilot basis.
The debit card would be credited with annuity and pension payments on due dates. LIC will, however, continue to offer customers the option of drawing pension through cheques, demand drafts or direct credit in bank accounts through ECS (electronic clearing service).
The annuity card scheme, after successful implementation in Mumbai, will be rolled out for LIC's 13.31 lakh customers across the country -- 9.31 lakh under individual schemes and over 4 lakh under group schemes.
T S Vijayan, chairman, LIC, said, "We want to keep pace with emerging technology and give the best service to our customers. Transaction costs are rising and we need cost efficient solutions to pay annuity at a pre-determined time with guarantee."
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