Reliance General Insurance, part of Reliance Capital, today launched a new facility allowing customers to pay premium using mobile phones, a move likely to increase productivity by 25 per cent and sales by 20 per cent.

The company today launched point of sales service using mobile phones - Mobile Point of Sales (MPOS) - which allows customers to pay premium using a mobile phone and eliminates payment-related delays, errors and frauds, a statement said.

"With this mobile payment platform, we are providing our customers an additional mode of payment with a view to strengthen our First-Time-Right initiative and eliminate all premium-related irregularities that can be possible with a manual system followed by the industry," Reliance General Insurance Company (RGIC) Chief Executive Officer and Executive Director Rakesh Jain said.

Jain further added that "with wider usage over a longer period of time, we believe it will help us translate in about 25 per cent increment in sales-force productivity and 20 per cent increase in sales."

The facility ensures higher level of security and transparency in premium payments with instant confirmation about the transactions through SMS and email.

Any GPRS-enabled touch screen mobile phone can be converted into point of sales terminal, which facilitates card payments, by connecting an external special card reader dongle. RGIC agent will carry the MPOS card reader dongle with their mobile phone to access the application of the bank and initiate premium collection from the customer.

Reliance General Insurance has distributed 1,000 dongles to its agents in the pilot phase. The company plans to equip its sales teams with 5,000 dongles in the next few months to enable wider usage, the company added.