Until 2011, LIC was offering claim settlement through other modes of payment including cheques. However, the present mode of claim
settlement is only through electronic mode of payment credited directly in one’s bank account. Customers cannot opt for any other mode
of receiving payment as per LIC’s current guidelines. The electronic payment is settled through the National Electronic Fund Transfer (NEFT)
method that allows payment towards any bank account in India.
National Electronic Fund Transfer
The National Electronic Fund Transfer is a system that allows seamless transfer of funds from one account to another in any banks located across the country. In order to make the NEFT transfer, the participating banks must have enabled it in the accounts of their customers. As of now, more than 74,000 branches of various banks participate in the process. This system is being operated by the Reserve Bank of India (RBI).