Requirement of pan to close a loan against a policy in lic

Sir,  a few days back I had closed a loan taken against my policy with  LIC.  I was asked to produce the PAN card along with the cheque for an amount more than a lakh.  I had read that  PAN was necessary to pay any premium  to an insurer if the amount was more than Rs. 50,000/-  in cash.   Payment by cheque does not attract submission of PAN Card.    

Am I right?   Please clarify.       

Thanks.