| | What Happens | Who the Transaction Affects | | :--- | :--- | :--- | | Claim Payment (Credit) | Your insurer deposits an approved claim amount directly into your bank account via electronic transfer (NEFT, RTGS or IMPS). The transaction description includes a code such as "PLICSBD" to help the bank and the insurer track the payment. | You (the policyholder or nominee) | | Premium Deduction (Debit) | You pay an insurance premium using your bank account, and the transaction description on your statement again includes the "PLICSBD" code for reconciliation purposes. | You (as the payer) |

The "patched" status likely indicates the transaction was successfully processed or cleared after a previous issue, such as a temporary hold or verification delay. To confirm the legitimacy of this entry, check if you or your employer have any of the following active with : Accident or Hospital Indemnity Insurance . Critical Illness Coverage . Disability Benefits (Short-term or Long-term). Wellness or Health Screening Claims . Guide to Managing the Entry

It signifies a transparent and efficient method of recording transactions. By directly patching the claim payment onto the bank statement, financial institutions ensure that policyholders have a clear and accurate record of their financial transactions.

The charge may be linked to a policy required for a credit card or a small personal loan, often marketed as "loan protection" or "credit life insurance."

However, technical updates to the automated clearing house data streams resulted in a widely discussed bank statement reporting issue:

To avoid encountering problems with future "PLICSBD" transactions: