Facility for payment of premium has been started in L.I.C. since March 2004. This is a facility by which premium is deducted by bank at pre-decided date and remitted to LIC. To avail of ECS facility, policy holder submits mandate form to LIC and also authorizes bank to deduct premium. Bank deducts premium on the basis of invoice received from LIC.
Electronic Clearance Service of Reserve Bank of India is a well established, quick, reliable and economic processing for periodic bill payments. LIC is happy to offer this facility to its valued customer totally FREE for payment of premiums.The policyholders having accounts in the banks in the cites , which are members of clearing house can avail of this facility for all policies irrespective of the LIC branch to which these policies are attached for servicing.
Relevant Conditions to avail this facility:
- ECS facility can be availed at the time of inception of the policy or later after completion of policy.
- At the time of inception of the policy, only ECS(MLY) mode can be opted. In ECS(MLY) mode, 5% extra premium charged under normal Monthly mode is waived.
- No receipts will be printed and dispatched for ECS(MLY) mode policies. An yearly premium paid certificate will be sent by the servicing branch.
- ECS mode of payment can be opted for ULIP policies including Health Insurance policies also. But for these policies ECS should be opted at Proposal stage (inception of policy) and under ECS(MLY) mode only.
- ECS mode can be opted for all non-ulip, in-force policies anytime after completion of policy. At this stage any mode (Yly, Hly, Qly) also can be opted. ECS(MLY) will be allowed only for the policies where Mly mode is allowed.
- To opt for ECS facility premium must be paid up-tp-date and the next premium must be due at least after 1 month from the date of option of ECS facility.
- Debit dates allowed are only 7th, 15th and 28th of the month. (Both at NB & PS Stage) and presently there is no option for debit date and complete grace period too is not available.
For more details, visit LIC website.
- This is a free service to policyholders. This will save their time in visiting LIC Office to pay the premiums.
- This will save their cost and effort in sending across the premium payments to LIC through postal/courier service/ through their representatives.
- This easy and automatic method of premium payment will keep the insurance protection intact and the chances of lapse of the policy will be eliminated.
- The one time standing instructions in the form of a Mandate is sufficient to pay the future premiums as and when they fall due.
- This facility of easy premium payment can be availed of not only in respect of the policies of self but also on the policies effected on the lives of the close relatives like spouse and dependent children (i.e.) the relatives on whom policies the policyholder can claim I.T. relief for the payment of premiums.
Policyholders desirous of availing of this service may download the ECS Mandate Form given below.
FOR ANYGENERAL QUERIES CONTACT LIC CALL CENTER AT 1251
Frequently Asked Questions
What is ECS?
ECS stands for Electronic Clearance Service. Policy holder gives standing instructions to LIC through a mandate to debit his bank account on settlement date for payment of his premium.
What is required to avail this service?
Policy Holder has to submit a duly signed Mandate Form attested by his bank to the Branch Office. Copy of the mandate form is to be submitted to his bank also.
What is Mandate Form ?
It is an authorization letter from Policy Holder for deduction of Premium, from his account.
What are the details to be furnished in Mandate Form?
Bank Name and address, Account holder’s Name, Account number of the customer, Account type (Saving or Current etc), MICR Code (available on the cheque leaf).It is to be signed by the policy holder and also by account holder and must be attested by the Bank Official. Phone numbers and email-id also should be mentioned.
Where to submit this mandate form?
To any LIC Branch Office which is a servicing branch at least one policy mentioned in the mandate.
Any Extra Amount is charged for this facility?
No extra amount is charged for this facility 5% extra premium charged for MLY policies is also waived for MLY ECS mode policies.
Whether this facility can be taken for existing policies or available only for new Policies?
This facility is available to all new policies including ULIP policies but only under monthly ECS mode. For existing non-ULIP policies, irrespective of mode this facility can be obtained.
When the premium amount will be deducted from bank account of the policy holder?
The debit dates fixed by Central Office are 7th, 15th and 28th of the month.
If Bank account is changed then what is the procedure?
A separate mandate form with new bank details is to be submitted to LIC office which comes under the ECS Centre of your Bank Account. “Form for change of Bank Details” should be marked prominently on the mandate form.
What is to be done in case of Mandate Failure?
Premium should be paid across the cash counter in the branch all the dues till the date of payment. Subsequent premiums will be collected thru ECS.
I have bank account in Mumbai, but my policy is being serviced by Delhi Branch. Can I opt for ECS?
Yes, it is possible. Policies can be serviced by any LIC Branch in India but Policy Holder should have his Bank Account in specified areas. LIC is having more than 51 ECS centers. The Customers bank account should be in any bank-branch under ECS center.