04 Jan 2026
Best way more cashback on insurance payment
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By PRADYUMNA SAHU₹1,00,000AMAZON PAYAmazon Pay
Rewardly Community
Rewardly Expert
- The most important thing to understand about insurance payments is that many credit cards either give reduced rewards or exclude insurance from earning altogether. Always verify the MCC (Merchant Category Code) and card-specific exclusions before making the payment.
- For Amazon Pay ICICI Credit Card on LIC/insurance payment via Amazon Pay: You will earn approximately 2% cashback in the form of Amazon Pay balance. This is earned when you pay insurance premiums directly through Amazon Pay using this card.
- This 2% reward rate is the maximum and best possible return you can get on insurance payments using the Amazon Pay ICICI card. The cashback is credited as Amazon Pay balance, which can be used for future purchases on Amazon or Amazon Pay partner merchants.
- Common mistake to avoid – DO NOT try to buy Amazon gift vouchers first and then pay insurance: Amazon Pay ICICI Card explicitly excludes gift card/voucher purchases from cashback rewards. Gift vouchers are treated as wallet/prepaid instruments and are not eligible for any rewards. So if you buy Amazon vouchers (Step 1: 0% cashback) and then use that voucher balance to pay insurance (Step 2: 0% additional cashback), your net reward = 0%. This route gives you nothing.
- The correct and only beneficial approach: Pay your LIC/insurance premium directly via Amazon Pay using the Amazon Pay ICICI Credit Card to get the 2% Amazon Pay balance cashback. Do not use any intermediate voucher purchase method.
- Important exclusions to remember: The Amazon Pay ICICI Card does not give cashback on: (1) Gift card/voucher purchases, (2) Wallet reloads/prepaid instruments, and (3) Certain insurance transactions may have capping or exclusions – always check the latest terms.
- For ₹1,00,000 insurance payment: Direct payment via Amazon Pay = ₹2,000 Amazon Pay balance (2%). Alternative voucher route = ₹0 cashback (0%).
- Alternative strategy: If you have other premium cards (like Axis Magnus, HDFC Infinia, or cards with insurance-specific benefits), compare the reward rates. Some cards may offer better returns on insurance payments, especially if they count towards milestone benefits. However, for Amazon Pay ICICI specifically, the direct payment route at 2% is your best option.
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