Revoke extra charges for the payment of premium through online

  3 (Goal: 50)

Petitioning: The Zonal Manager, Life Insurance Corporation of India, 102, Anna Salai Chennai

Petitioner: Balamurali Balaji started on January 15, 2014


Department of Consumer Affairs,
Government of India.

Respected Sir/Madam,

Life Insurance Corporation of India has started levying extra charges for premium payment done through online.
Please. refer the link

For Debit cards, it is Rs. 12/ flat as Convenient Charges + 12.36% Service tax on the premium amount. For Credit card payments up to Rs.5000/, Rs. 18/- as C.C plus 12.36% Service tax.
For Rs. 5000.01/- onwards it is Rs. 35/- Flat Fee's on premium amount plus 12.36% Service Tax

This would be great burden on customers who pay premium online. For Rs.1000/ of premium amount through Debit Card, one has to pay Rs. 123.60/- as additional charges. And for the same amount through Credit cards, it is Rs. 180/-

It is unethical and unwarranted practice of collecting convenient charges from the customers for paying bills through online as it might lead to other online billing systems to follow the suit. Railway reservation, Bus tickets, Electricity Bill, Phone Bill, Wealth Tax, Water Tax and many more payments made to various departments are also subjected to heavy collection of additional charges.

Internet is a common medium of communication and conducting transactions. Government departments and organizations are using it for bill payments for the convenience