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Get your PAN Linked with LIC Policies
17 Apr 2023

The insurance sector in India is booming with activity and is fast-becoming the most lucrative market. Insurance is something that many families and individuals have in India, and it acts as a safeguard against potential emergencies, whether its vehicle, health or life insurance. The company, the Life Insurance Corporation of India or LIC, is solely owned by the Indian government and its products include not only life insurance plans, but health insurance and other term insurance plans. Getting any LIC policy assures holders of good returns on investment (in the case of investment schemes) and security in insurance coverage. However, if you hold an LIC policy, or are about to get one, you should know that you can link your PAN Card details to the policy to get advantages. 

Linking Details with an LIC Policy

Recently, the Life Insurance Corporation of India has been in the news as the launch of its IPO is on the horizon. In the current budget speech, the Finance Minister also spoke about it. LIC is the biggest insurance provider in the nation and has the largest customer base, and market share in the insurance segment. You may already hold an LIC policy or plan to apply for one. If this is the case, it is important to link details of your PAN Card with your policy. As with any investment you make, this is mandatory in certain investment instruments. However, why should you do this? Firstly, this is a compulsory condition when you wish to have an LIC policy, especially if you wish to invest in the insurance giant when its IPO is released. Linking your PAN Card to any investment tool facilitates the record of your income tax documentation and makes processes simpler when you have to file your returns. Furthermore, as an LIC policy holds particular components that save you tax, linking details is vital from this viewpoint as well. Anyway, most existing LIC policy holders have shown immense interest in investing in the upcoming IPO, so linking details is of the utmost importance. If you wish to invest in the IPO, you must open a Demat account too. You can easily do this with a reliable and prominent broker like Motilal Oswal. 

How to Link a Pan Card with an LIC Policy

The process to link your PAN Card (and its best to link your Aadhaar Card too) is simple at the LIC policy website at https://www.licindia.in. To link details, you may follow the steps below: 

  1. After you land on the Home Page, you can click on “Link Aadhaar and PAN Card to LIC Policies”. 
  2. A new page will pop up and you are requested to fill in details like your PAN and Aadhaar numbers.
  3. A disclaimer will also be displayed. You must read this carefully and accept it.
  4. Then, you will be shown a captcha code to be entered. Once entered, an OTP will arrive.
  5. The phone number that you have registered with your Aadhaar and PAN details will receive the OTP. You will need to enter the OTP received. 
  6. At this point, your request will be sent to be verified, and once it is approved, you will get confirmation of the same. 

LIC IPO Launch

After a long wait (primarily due to the Ukraine crisis), the LIC IPO is due for release on 2 May 2022 for policyholders, anchor investors and employees. On 4 May, it will be open to retail investors. The mammoth insurance company’s long-anticipated initial public offering will be in the ₹ 902-949 price band, with the Indian government expected to give a discount of Rs. 60 to policyholders and a Rs. 45 discount to employees of LIC and retail investors, sources claim.

In additional news, the LIC board has approved a cut in the IPO issue size. This is now 3.5 percent (from the previous 5 percent), claim sources. The Government of India is now expected to sell 3.5 percent of its holdings in LIC for Rs. 21,000 crore.

Following Regulations

When you make investments, you must follow regulations in order to align yourself with income tax laws and also to make processes seamless. Linking your PAN Card to various investment and financial instruments and services may be all but the rule of law in current times. This also ensures a great deal of security in transactions. You can learn more at Motilal Oswal, and you will discover that opening a Demat account requires you to link your details too. 

Related Articles: | Upcoming IPO | LIC IPO

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