Industry · insurance
Small payments in, for years. One large payment out, when it matters.
Money in
- First premiumAt proposal or issue
- Renewal premiumsYearly, monthly or other modes
- Top-upsWhere the product allows
The policyyears of payments in both directions
Money out
- Free-look refundIf a new policy is returned in the free-look period
- Claim payoutsTo the insured, a beneficiary or a hospital
- Maturity and other benefitsFor policies that pay them
Collect reliably
Renewals are the lifeblood; a missed one can mean a lapsed policy.
Refund correctly
Free-look returns and cancellations follow the rules and the terms.
Pay out safely
Claims go to verified accounts of the right people.
How LILPE fits
One payment layer for Insurance
- Your businessCheckout, apps, platforms
LILPEOne API and dashboard- Routing engineRules, health, cost
- ProvidersPSPs, gateways, acquirers
- Payment networksCards, real-time rails, banks
- 01PaymentRequest arrives
- 02DecisionRules and health
- 03RouteBest provider
- 04AuthorizationApproved or retried
- 05SettlementFunds arrive
- 06ReconciliationMatched and reported
- Intelligent routing Each payment goes to an eligible provider, by your rules and recent performance.
- Smart retry Recoverable failures retried on another provider as one payment.
- Automatic failover Unhealthy providers paused; traffic moves to healthy ones.
- Reconciliation Payments matched to settlements across providers.
Availability and settlement options are confirmed during onboarding.
The first premium
The first payment usually happens during a sale: online through a website or app, through an agent or broker, or at a branch. It needs to be matched to a proposal reliably, because the policy is issued against it, and a payment without a proposal (or a proposal without a payment) creates work and uncertainty for the customer.
It's also the best moment to set up the renewal mandate, while the customer is engaged and already paying.
| Channel | Payment | Match on |
|---|---|---|
| Website or app | Checkout by UPI, card or net banking | Proposal number in the payment |
| Agent or broker | Payment link sent to the customer | Proposal number in the link |
| Branch or partner | Counter payment or transfer | Receipt and proposal number |
Renewals: the payment that keeps a policy alive
Most policies depend on renewals being paid on time, and most lapses are forgotten payments rather than decisions to leave. A mandate collected at the start, plus a reminder sequence for those without one, protects both the customer's cover and the insurer's book.
NACH mandate
Bank-account debits on each renewal date; suits yearly and monthly premiums.
UPI or card e-mandate
Under RBI's e-mandate framework, with pre-debit notices and per-debit limits.
Reminder and link
For policyholders without a mandate: a message with the amount and a link, well before the due date.
Free-look returns and cancellations
Insurance regulations give policyholders a free-look period to return many new policies, and policies can be cancelled later on the terms they set out. Each creates a refund whose amount follows rules: what may be deducted, and by when it must be paid.
The payment side is the easy part if the refund goes back to the original payment method: it's tied to the premium, needs no new account details, and shows the customer exactly what they got back. The periods, deductions and timelines themselves come from IRDAI's regulations and the policy terms; check the current rules for your products.
Calculate per the terms. Deductions only as the rules and policy allow.
Refund to the original method. Tied to the premium payment.
Tell the customer. Amount, deductions and reference.
Close the loop. Policy status and refund recorded together.
Claim payouts: pay the right person, once
A claim payout is often the only time an insurer sends a customer money, and it's the payment fraudsters target: changed bank details, a payout to someone other than the beneficiary, a duplicate payment on a resubmitted claim.
Verify the receiving account before paying: that it's active and that the name matches the person entitled to the money. Pay through a process that can't pay the same claim twice, and record the bank reference on the claim.
- 01
Claim approved
Amount and payee confirmed.
- 02
Account verified
Active, and the name matches the payee.
- 03
Paid once
A single payout request per claim.
- 04
Confirmed
Payee told the amount, date and reference.
Brokers, agents and platforms
Intermediaries sell insurance, and money flows around them in two ways: premiums they help collect, and commissions they're paid. How premiums may be handled by an intermediary, and how commissions are paid, are governed by insurance regulations and the agreements between the parties.
The practical payment work is matching: each premium to its policy and to the intermediary that sold it, and each commission payment to the policies it covers.
| Question | Settle with |
|---|---|
| Does the premium go straight to the insurer? | Your agreements and the applicable regulations |
| How are commissions calculated and paid? | The insurer's agreement with the intermediary |
| What happens to commission on a refunded policy? | The agreement's clawback terms |
Reconciling the policy system with the bank
Every premium should appear against a policy, and every policy in force should have its premiums. Reconcile daily: collections by channel against policies, mandate debits against the renewal schedule, returned debits against lapse warnings, and refunds and claim payouts against their approvals. Premiums received without a policy reference need an owner and a deadline, because a customer who paid is a customer who believes they're covered.
Where LILPE fits
This page doesn't name any insurer, broker or platform using LILPE, or describe integrations with policy systems. Whether LILPE can help with premium collection, verification or payouts is confirmed during onboarding.
Insurance payment questions
What's the best way to collect renewal premiums?
A mandate set up when the policy is bought (NACH on a bank account, or an e-mandate on a card or UPI) collects each renewal on its due date without the policyholder having to remember. Reminders and a payment link cover those without a mandate.
What happens if a renewal payment fails?
The policy may be at risk of lapsing, depending on the product's terms and any grace period. Tell the policyholder quickly, explain the consequence, and give an easy way to pay. What the grace period is and what happens after it are set by the policy terms and insurance regulations.
How are free-look refunds handled?
Policyholders can return many new policies within a free-look period and receive a refund, subject to deductions the regulations allow. The period, deductions and timelines come from insurance regulations and the policy terms; check the current rules for your products.
How should claim payouts be made safely?
To a bank account verified to belong to the right person (the insured, nominee or beneficiary), after checking the name on the account. Record the bank reference against the claim. Payouts to unverified accounts are a common route for fraud.
Who regulates insurance payments?
Insurers and intermediaries are regulated by IRDAI, and payment systems by RBI. Which rules apply to a particular payment flow is a question for your compliance team or adviser.
Does LILPE work with insurers?
This page doesn't name any insurer or intermediary using LILPE. Whether LILPE can help with premium collection or payouts, and with which products, is confirmed during onboarding.
Last reviewed . Examples, amounts and screens marked illustrative are not LILPE figures.
Guides
Guides and explainers
- UPIUPI AutoPay Explained: How Recurring UPI Payments WorkUPI AutoPay lets a merchant debit your bank account on a schedule you approve once in your UPI app. How a mandate is set up, what you're told before each debit, when your UPI PIN is still needed, the controls you keep, and what a business has to build to collect this way.Read the guide
- GuidesNACH vs. eNACH: Choosing the Right Recurring Payment MandatePhysical NACH, eNACH, UPI and card e-mandates all collect recurring payments, in different ways. How each is set up, what it suits, where it fails, and how to choose for your customers.Read the guide
- PaymentsUPI Transaction Limits in India: Per Payment, Per Day and by CategoryUPI's standard limit is ₹1 lakh per payment, but some merchant categories go up to ₹5 lakh, AutoPay has its own caps, and your bank can set lower limits than any of these. What the current NPCI and RBI limits are, and why a payment can fail well below them.Read the guide
- PaymentsMerchant Category Code (MCC): What It Is and Why It Matters for PaymentsEvery card and UPI merchant carries a four-digit merchant category code that says what kind of business it is. That code affects fees, transaction limits, whether some cards work at all, customers' rewards and how risky a business looks. What an MCC is, who assigns it and by what rules, examples, why it matters in India, and what to do if yours is wrong.Read the guide
Get started
From first call to live payments
- 01Tell us what you needYour methods, markets and providers. We confirm what's available for your business.
- 02Sandbox accessTest credentials and the API reference, provided during onboarding.
- 03Integrate and testOne request pattern; run success, failure, refund and webhook flows.
- 04Go liveProduction credentials, with the LILPE team on hand for go-live.
Route every payment to where it succeeds.
Tell us which providers you use today and where payments get stuck. We'll show you what the setup would look like on LILPE.