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How To Pay Health Insurance Premium Through NEFT/RTGS

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Managing your health insurance payments should be straightforward and stress-free. With the rise in online banking, paying your health insurance premium through digital means like NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) has become increasingly popular.

Whether you are new to this method or simply want to make sure you are doing it right, this blog will help you understand the process in a simple and easy way.

What are NEFT and RTGS?

Before discussing the payment process, it is important to understand what NEFT and RTGS are:

• NEFT (National Electronic Funds Transfer):

A nationwide system that enables one-to-one funds transfer. Payments made through NEFT are settled in batches.

• RTGS (Real-Time Gross Settlement):

Unlike NEFT, RTGS transactions are processed continuously throughout the banking hours and are used for high-value transactions.

Both systems are managed by the Reserve Bank of India (RBI) and provide safe and efficient ways to transfer funds.

Why Choose NEFT/RTGS to Pay Your Health Insurance Premium?

Here are a few reasons why NEFT/RTGS is a preferred method:

• Secure and traceable transactions

• Ideal for remote payments

• Beneficial for high-value premium payments

• Immediate confirmation with RTGS

• Available across most banks in India

What Will You Need Before You Begin

To initiate a successful NEFT or RTGS payment, ensure you have the following details:

• Beneficiary name (health insurance provider)

• Bank name and branch

• IFSC Code

• Bank account number

• Premium amount

• Your policy number or customer ID (as the payment reference)

You can usually find this information on your policy document or the insurer’s official website.

How to Pay Health Insurance Premium Through NEFT

Follow these steps to pay your premium via NEFT:

1. Log in to your net banking portal.

2. Navigate to the "Funds Transfer" section.

3. Choose NEFT as your preferred method.

4. Add a new beneficiary using the details provided by your insurer.

5. Enter the correct account number, IFSC code, and beneficiary name.

6. Save the details and wait for beneficiary approval (if applicable).

7. After approval, go to "Transfer Funds".

8. Enter the premium amount.

9. In the remarks/reference field, mention your policy number or customer ID.

10. Confirm the details and initiate the transfer.

The transfer typically takes a few hours within the same banking day.

How to Pay Through RTGS

RTGS is ideal for paying large premium amounts. Here's how to use RTGS:

1. Log in to your internet banking.

2. Choose RTGS as your transfer mode.

3. Add the beneficiary account details.

4. Input your policy number in the transaction remarks.

5. Confirm the transfer.

Since RTGS transactions are processed in real time, your insurer will receive the payment almost instantly.

Is NEFT/RTGS Payment Method Safe?

Yes, NEFT and RTGS are both governed by the Reserve Bank of India, making them safe and reliable modes of payment. Your bank’s digital interface is encrypted to protect your personal and financial data.

When Will the Premium Be Reflected?

• NEFT: Within 2-4 hours (same banking day)

• RTGS: Usually within minutes

However, always check with your insurer regarding the cut-off time for premium updates.

Benefits of Using NEFT/RTGS for Health Insurance Premiums

• Paperless and environment-friendly

• No need to visit insurer offices

• Transparent and recorded in your bank statement

• Can be done anytime (NEFT)

• Suitable for urgent or large payments (RTGS)

Common Mistakes to Avoid

• Not entering the correct IFSC or account number

• Forgetting to include your policy number in the remarks

• Initiating an RTGS transaction for an amount less than ₹2 lakh

What to Do After the Payment?

• Save the transaction receipt.

• Wait for a confirmation SMS or email from your insurer.

• If confirmation doesn’t arrive within 24 hours, contact customer service.

What If the Transaction Fails?

If your payment fails:

• The amount is usually reversed to your account automatically.

• Confirm the entered details and try again.

• Contact your bank or insurer’s support team for assistance.

Understanding Health Insurance Premiums

Paying your premium on time is crucial to keep your health insurance policy active. Missed payments can lead to policy lapses, loss of benefits, or delays in claim settlement.

As a policyholder, you should have a better understanding of what is medical insurance and what the premiums are how they are paid.

Conclusion

Paying your health insurance premium via NEFT or RTGS is easy, safe, and reliable. It ensures that your policy stays active without the need for physical paperwork or visits to the insurance provider. With just a few clicks, you can fulfil your responsibility and secure your health coverage.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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