The life line of an insurance company is the timely collection of its premiums. The collection cost too plays an important role in the profitability of the insurance company.
The government owned non-life insurer United India Insurance Company Ltd. will be the first Indian insurer to activate mobile phone premium payment.
In near future, claims settlement too could be through this payment channel.
UIC to minimize its collection cost and zeroise its collection time has launched the M-Power.
M-Power works around the IMPS P2M model. The company has set a modest target of 5-7% of its premium collections through M-Power.
The facility enables customers to remit the premium through mobile phones, using the mobile number and MMID (mobile money identifier) of the company.
One of the key thumb-rules of Insurance is that only the insurable interest holders should remit the insurance premium.
Hence, sufficient safeguards are there so that only the policy holder makes the premium payment on mobile and not anybody else who may not have any insurable interest in a property.
Standard Chartered Bank is the lead bank in the M-Power UIC Project.
MMID (Mobile Money Identifier) is 7-digit number issued by the Bank to the customer upon registration.
Re-disseminateda by Prashant N. Banker by daytime, Blogger by night.
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- United India offers mobile premium payment facility (thehindu.com)
- How are life insurance premiums calculated? (aptusinsurance.com)