LIC Merchant Premium – A Way of Making Payment Easy for Policyholders and Merchants
November 15, 2025
The LIC Merchant Premium is a critical service provided by Life Insurance Corporation of India (LIC). It allows legal intermediaries, which could be LIC agents and premium collection centres to collect premiums on LIC’s behalf from policyholders. It will be convenient for the insured to pay, and an opportunity for merchants to develop their businesses. In this article, let’s check How LIC Merchant work and what it benefits in for a policy holder and merchant as well, presenting easier options to pay the premium.
What is LIC Merchant Premium?
LIC Merchant Premium is an online premium payment service which allows authorised LIC merchants to collect insurance premiums from the policy holders. Through the online Merchant Portal of LIC, these merchants are able to provide premium payments, issue receipts and update their records. It enables policyholders to pay locally & eliminates the process of visiting nearby LIC branch.
Here’s how it works, in brief:
| Step | Details |
|---|---|
| Merchant Login | The merchants need to use their login id / password to access LIC merchants portal. |
| Enter Policy Number | The policy no is entered by the merchant to search premium. |
| Premium Collection | The policyholder pays the merchant the premium. |
| Transaction Recording | The payment can be seen in the LIC portal to ensure transparency”. |
| Receipt Generation | A receipt is printed out and issued to the policyholder. |
| Remittance to LIC | The moneys are sent to LIC. |
How Does LIC Merchant Premium Work?
What is LIC Merchant ? / What is the Use of It? Here are the details of how it works:
Merchant Login
Merchants login to LIC Merchant Portal using their user Id and password.
Premium Calculation
The merchant inputs the policy number after logging in. The details for the premium like amount due and policy status are fetched.
Underwriting Collection
The premium collection is done by the merchant from the policy holder in terms of cash, card or online payment through available modes.
Recording Payment
Once payment is received, merchant records the transaction in LIC Merchant Portal.
Receipt Issuing
Renewal receipt is issued to the policyholder as the payment evidence.
Funds Transfer
The total premium amount collected gets transferred to LIC – either directly from the portal or via bank.
This work is to ensure that payments are being handled efficiently, while the records are current at any given time.
Merits of LIC Merchant Premium for Policyholders
The policyholders can get benefited with the LIC Merchant and it provides ease of use and saving your time. Some such benefits are:
Convenient
Pay premium at any of the merchant collection centre too where policyholders are not required to visit LIC branches.
Instant Receipts
Policy holders are provided with a receipt instantly post payment that acknowledges successful transaction and there can be no issue of policy lapsation.
Multiple Payment Options
Card, cash or online transfer as per the merchant’s convenience.
Lower Lapse Risk
Policyholders can keep their policy from lapsing without missing premiums by making payments at a local centre.
Features of LIC Merchant Premium for Merchants
Benefits for Merchants Merchants benefit greatly by being a part of the LIC Merchant Premium system. Here’s how they benefit:
New Business Opportunities
It allows merchants to serve more customers as they can provide LIC premium collection service and thus grow their business.
Extra income
Merchants receive paying commission for every recharge, thus an extra avenue of earning money.
Simplified transaction process
The LIC Merchant Portal is a paperless method, which means all business transactions are recorded digitally. This simplifies and accelerates the management of payments and receipts.
Customer Retention
With local services, merchants can build trust and loyalty with customers, so it’s easier to keep them coming back.
How to Turn into an LIC Merchant High quality Collector?
You can be a LIC Merchant Premium collector in an easy way. Here’s what you need to do:
REGISTRATION
You should first be authorized by LIC. This requires you to sign up as the LIC agent or a premium collection center.
Merchant Portal
After registering you will be able to login into the LIC Merchant Portal and begin collecting premiums.
Support and Training
LIC offers support and trainings to help users maximize the portals functionality.
Premium Collection
Now start collecting premiums from policy holders, updated payment and do remittance to the LIC.
All You Need to Know about LIC Merchant Premium Payment: Problems Faced and Solutions
Although LIC Merchant Premium system is effective but it may get problems sometimes. Here are a few common issues and their fixes:
Common Issues & Solutions Table
| Issue | Solution |
|---|---|
| Payment Not Reflecting in Portal | You will want to put these together, which is where the “Adjust Transaction” feature comes in. |
| Forgot Password | I forgot my password, how do I get a new one? |
| Incorrect Policy Number | (see the policy number and it can be corrected on portal) 3. |
| Delayed Remittance | Make sure if funds are being transferred to LIC on time (and not after) to avoid Late Fee. |
You can fix most problems with just a few easy steps.
Conclusion
Final Thoughts on LIC Merchant Premium
The LIC Merchant Premium is a premium collection system, which has been devised to ease up the payment collection in favour of both, the policyholders and the Merchants. It’s simple, secure and convenient – helping to keep your policies in force with timely payments. This not only provides a simple way for policyholders to pay premiums at local collection centres, but also offers merchants a chance to earn commissions and expand their business.
This platform is a win-win deal for all, if you are a policyholder looking for an easy way to pay the premiums or merchants who want to join LIC Merchant Premium system.
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