AU Small Finance Bank Partners: In a landmark move poised to strengthen financial inclusion and deepen insurance penetration across India, AU Small Finance Bank (AU SFB) has officially partnered with the Life Insurance Corporation of India (LIC) — the country’s largest life insurer. This collaboration aims to bolster the Government of India’s vision of “Insurance for All by 2047”, enhancing access to comprehensive life insurance products especially in underbanked rural and semi-urban regions. By leveraging AU SFB’s expansive distribution network and LIC’s credibility in life insurance, the partnership seeks to deliver a seamless protection and financial planning experience to millions.
The strategic alliance will make LIC’s full portfolio of life insurance offerings — including term plans, endowment policies, whole life insurance, pension and annuity plans, and child insurance products — available through AU SFB’s 2,456+ branches spread across 21 states and 4 Union territories. This large-scale distribution will cater to India’s underserved population, offering solutions tailored to varied income levels, protection goals, and retirement aspirations. The initiative also supports holistic financial inclusion by blending banking, insurance, and long-term wealth planning into a unified customer experience.
According to Uttam Tibrewal, Executive Director and Deputy CEO of AU Small Finance Bank, this partnership is a step forward in delivering inclusive, customer-centric financial services. “This strategic partnership brings together two institutions committed towards providing inclusive financial services to the unserved and underserved. By leveraging our distribution strength and LIC’s trusted insurance products, we aim to provide comprehensive protection and retirement solutions to customers across Bharat and enhance the comprehensive banking experience,” he said.
Highlights of AU SFB and LIC Partnership
| Feature | Details |
|---|---|
| Partnership | AU Small Finance Bank and Life Insurance Corporation of India (LIC) |
| Reach | 2,456+ branches across 21 states and 4 UTs |
| Goal | Support ‘Insurance for All by 2047’ initiative |
| Insurance Products Offered | Term Plans, Endowment, Whole Life, Pension, Annuity, Child Plans |
| Target Segment | Rural, Semi-Urban, Underserved Populations |
| Bank’s Customer Base | Over 1.13 crore as of March 31, 2025 |
| AU SFB Balance Sheet | ₹1.57 trillion |
| LIC’s Role | India’s largest life insurer |
| Bank’s Credit Rating | AA/Stable |
Who Can Apply?
This insurance distribution initiative is open to:
- Existing AU SFB customers across savings, current, and loan accounts
- Individuals aged between 18 to 65 years
- Salaried and self-employed professionals
- Rural and semi-urban dwellers seeking affordable protection or retirement plans
- Parents planning financial security for their children
- Senior citizens looking for annuity or pension plans
Insurance Fees and Premiums
The insurance premiums vary based on:
- Type of product selected (term, endowment, pension, etc.)
- Sum assured and policy term
- Age and medical history of the applicant
- Premium payment frequency (monthly, quarterly, yearly)
Typical premium amounts may range from ₹2,000 per annum for basic term plans to ₹50,000+ per annum for high-value pension or annuity schemes. Customers can get customized quotes from AU SFB branches.
Also read: Indias Insurance Gap: Most Indians Underinsured by 30–50% Despite Growing Awareness
How to Use These Insurance Services
AU SFB customers can:
- Visit the nearest AU SFB branch
- Inquire about LIC’s available insurance plans
- Meet with the bank’s dedicated insurance officer
- Choose a plan that suits their life stage and financial goals
- Complete KYC and health declaration
- Pay the first premium and receive the LIC policy document
Policyholders can use LIC’s online portal or mobile app to:
- View policy status
- Download premium receipts
- Update nominees
- Make future premium payments
Benefits of the Partnership
1. Enhanced Access
With 2,456+ AU SFB branches onboard, customers — even in remote regions — can easily purchase trusted life insurance products from LIC.
2. One-Stop Financial Solution
Customers can combine their banking and insurance needs under one roof, simplifying money management and future planning.
3. Affordable Protection
LIC’s wide product range ensures there’s something for every income segment — from micro insurance to retirement solutions.
4. Trusted Service Network
LIC’s 60+ years of legacy, combined with AU SFB’s customer service excellence, ensure smooth onboarding and policy servicing.
How to Apply for LIC Insurance via AU SFB
Step-by-Step Application Process:
- Walk into any AU Small Finance Bank branch near you
- Request to speak to the insurance officer
- Choose from a wide range of LIC plans suited to your needs
- Submit KYC documents (Aadhaar, PAN, photo)
- Undergo medical assessment if required
- Pay the premium through cash, cheque, or direct debit
- Receive your policy kit with details, benefits, and terms
Online Booking: As of now, policies must be initiated at the branch. Future online integrations via AU 0101 app or LIC’s digital portals may be introduced.AU Small Finance Bank Official Website
Important Dates
| Event | Date |
|---|---|
| Partnership Announcement | July 2025 |
| Insurance Availability at Branches | Immediate |
| Policy Issuance Timeline | 3–7 business days |
| Online Policy Access (via LIC) | Within 48 hours of issuance |
Disclaimer
This article is for informational purposes only. AU Small Finance Bank acts as a corporate agent of LIC and does not underwrite any insurance risk. All insurance plans are underwritten by Life Insurance Corporation of India. Terms, conditions, and exclusions apply as per LIC’s product guidelines. Please read the offer documents carefully before purchasing. Rates and features mentioned are subject to change.
AU Small Finance Bank Partners Conclusion
The partnership between AU Small Finance Bank and LIC stands as a testament to the shared vision of delivering financial protection and retirement planning solutions to every Indian household. By merging the strengths of a technology-driven small finance bank and the legacy of India’s largest life insurer, this alliance will significantly enhance accessibility, affordability, and awareness around life insurance.
In rural and semi-urban India, where insurance penetration has traditionally lagged, this collaboration could be a game changer. With trusted LIC products available at over 2,456 AU SFB branches, customers will benefit from convenience, personalized advice, and seamless policy management — all under one roof.
Moreover, the focus on long-term planning — including pension, annuity, and child-specific plans — empowers families to safeguard their future financially. Whether you’re a daily wage earner or a salaried employee, LIC’s solutions via AU SFB now offer a clear, secure, and simple way forward.
As India inches closer to its 2047 financial inclusion goals, this partnership could play a pivotal role in democratizing insurance access for millions. It’s not just a policy — it’s a step toward financial empowerment and security for all.
AU Small Finance Bank Partners FAQs
1. What types of LIC insurance plans are available through AU Small Finance Bank?
AU SFB offers a broad range of LIC plans including term insurance, endowment policies, whole life insurance, pension and annuity plans, and child-specific policies. These are tailored to meet the needs of individuals at various life stages.
2. Is it mandatory to have an AU SFB account to buy LIC insurance through their branches?
Yes, currently LIC policies distributed through AU SFB are available to AU SFB customers only. If you’re not already a customer, you can open a savings account first, then apply for an LIC policy at the same branch.
3. Are there any special offers or discounts on LIC plans via AU SFB?
While LIC products are standardized, AU SFB may occasionally offer bundled financial benefits, such as waivers on service charges, cashback on first premium payments, or free financial advisory sessions. Always check with your branch for current promotions.
4. How long does it take to get the LIC policy after applying through AU SFB?
Policy issuance typically takes 3–7 business days, depending on the type of policy, medical underwriting requirements, and document verification. For simpler term plans, it could be quicker.
