The life insurance corporation (LIC) is India’s largest IPO. It had filed the DRHP with SEBI on February 13, 2022. According to the company’s LIC IPO DRHP, 10 percent of the shares of the company will be reserved for the LIC policyholders. In order to claim this benefit, the policyholders had to link their policies with the permanent account number (PAN). The last date was February 28th 2022. Linking the PAN card with the life insurance policy is simple. Let us now understand how to link a PAN card with the life insurance policy in a series of simple steps.  

A Step By Step Guide To Link Pan Card With The Life Insurance Policy

  • Log in to the official website of LIC - licindia.in
  • Select the ‘Online PAN Registration’ option, present on the homepage
  • Ensure that you keep the PAN card and the list of policies to be linked in handy
  • Click on the 'Proceed' option
  • Enter the details below:
    •  E-mail ID
    •  PAN number
    •  Mobile number 
    •  Policy number 
    • After entering the Captcha, you will have to click on 'Get OTP'
  • You will receive an OTP on the mobile number. Enter the OTP that you get.
  • Submit the form. 
  • Post submission of the form, a message will be displayed indicating that you have completed the registration request successfully. 

The Union cabinet approved the foreign direct investment (FDI proposal) of investing up to 20% in LIC IPO. If you have any further queries or need further details, you can log in to the official website of LIC at licindia.in. 

How To Check Your PAN Card And LIC Policy Link Status Online?

To check your PAN card and LIC policy link status online, you can login at linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus and follow this step-by-step guide. 

1) Login at direct LIC India link — linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus:

2) Enter the policy number in the given space

3) Enter your date of birth

4) Key in your PAN details

5) Enter Captcha

6) Click the ‘Submit’ option

Your LIC PAN linking status will be displayed on the monitor of your computer or on your cell phone screen

Chairman MR Kumar Says That PMJJBY Policyholders Are Eligible To Avail Quota Benefits For IPO

The chairman of the Life Insurance Corporation of India, MR Kumar, on Monday revealed that the policyholders of  Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) will qualify for the IPO quota benefits for the LIC IPO in the future. As per the Draft Red Herring Prospectus (DHRP) submitted by the LIC with SEBI, 10% of the LIC IPO will be reserved for LIC policyholders. 

Benefits Of Linking the Life Insurance Policy With The PAN Card

A discount will be given to the LIC policyholders or employees in this offer. According to the norms, up to 5% of issue size can be reserved for employees and up to 10% for the policyholders.  This was however not disclosed in the DRHP by the government. To avail these benefits, LIC policyholders should link their permanent account numbers (PAN) with the life insurance policies ASAP. 

Prerequisites To Be Eligible For IPO Under The Policyholder Category

The prerequisites to be eligible for IPO under the policyholder category are:

  • Pan details of the policyholder should be updated on the LIC portal
  • Policyholder should have a Demat account

Demat Account

Apart from linking the PAN card with your LIC insurance policy, it is mandatory to have a Demat account if the policyholder wants to be eligible for IPO under the policyholder category. If the policyholder already has a Demat account, then there is no need to open a new account. But, if he/she does not have a Demat account, then one can open the same with any depository participant (DP). 

Key Takeaways

  • Those who are not LIC policyholders can also apply for the IPO under the investment category as applicable - retail or institutional.
  • One can choose to take the aid of the LIC agent to ensure that all the updates have been carried out. 

Why Is It Important To Link PAN With Life Insurance Policy?

In sync with the union government’s decree, the LIC is now asking its customers to link PAN with the policy online. They are doing this in order to verify the authenticity of the customer. New LIC policies are also being taken after linking with the PAN. The PAN is a number that helps you to track all your investments, income, and expenses clearly. LIC policies are useful for saving on tax, and PAN is very significant in the taxation system. Thus, LIC is persuading its customers to link the PAN with the policies so that all the insurance policies and investments stay clear for all - the investor and the government. LIC provides affordable endowment and term insurance policies. They are used to safeguard the policyholder’s and the nominee’s future in the long run. Some common LIC policies are Jeevan Labh, Jeevan Lakshya, Jeevan Umang, Saral Pension Plan etc.  

Conclusion

In order to reap the benefits, you should link the PAN card with the life insurance policy. Follow the steps above to have a hassle-free linking experience. 

FAQS LIC India IPO: How To Link PAN Card With The Life Insurance Policy?

1:Is it essential to link PAN with the LIC policy?

It is important to link the PAN and the LIC policy so that policyholders become eligible to participate in the upcoming LIC’s IPO and get a discount on the floor price.

2:What Is Ipo in LIC Policy?

IPO in Life Insurance Corporation of India (LIC) is a much-awaited initial public offer. LIC has applied for it with the markets regulator and plans to sell 5% of its stake via an offer for sale (OFS). 

3:Can I link my PAN with my child LIC policy?

Yes, you can link the PAN with the child LIC policy. To link the PAN, the policyholder has to go to the official LIC website - www.licindia.com and click on the button “Online PAN registration”. The policyholder needs to enter the date of birth, email ID, PAN, name as per the PAN, mobile number, and policy number. If there are many policies, all policy numbers can be added.