The sector of insurance has evolved in many ways over the last few years. From a time when people needed the assistance of agents to people researching, comparing, and purchasing policies online in today’s date, the framework of insurance is evolving.
Amidst such times, being able to purchase LIC policy, update information, and more through the digital media is a breakthrough. One of these breakthroughs is the online premium payment mode made available by LIC for its users. From the comfort of their homes, customers can pay their monthly/quarterly/yearly premiums online and accomplish more tasks.
LIC Premium Payment Through ECS
Policyholders can choose to pay their premiums towards LIC in a variety of ways. One of the most hassle-free ways is through the means of Electronic Clearing Service or ECS. LIC offers this facility to its customers in order to make the process of paying premiums easy and fairly uncomplicated. Apart from the feature being free of cost, it acknowledges requests from every policyholder, despite the location of their home branch.
There are certain preconditions for this feature that LIC lays down for its customers:
- The facility can be utilised either when the policy is incepted or later when the policy is completed.
- During inception of the policy, the mode ECS(MLY) can only be selected.
- For policies falling under the ECS(MLY) mode, no receipts will be handed out. Since the premium is paid on a yearly basis in this case, the servicing branch usually sends out a certificate for the same.
- For people investing in ULIP policies and health insurance policies, ECS mode of payment can be used. However, in this case, ECS must be chosen at the inception stage (Proposal Stage) only and the mode can be ECS(MLY) only.
- After the completion of policy, the ECS mode of payment can be opted by policyholders holding Non-Ulip, in-force policies as well. Additionally, after this stage, any payment mode can be selected by the customer.
- The policyholder will be required to make the premium payment diligently to be able to avail the ECS facility.
How to Avail the ECS Facility
- The policyholder will be required to submit a ‘Mandate Form’ to any branch of LIC that must have:
- The policyholder’s signature
- The account holder’s signature
- The customer bank’s attestation
- Cancelled cheque leaf
- The policyholder will thereafter be required to cross-check the MICR code and bank details for any error, and resolve the same.
- The policyholder will be required to fill in three separate copies of the Mandate form. The first copy will be sent to LIC, the second will be sent to the bank, and the third copy can be preserved by the customer for any future reference.
- The policyholder has to have an account in any one of the cities mentioned under the ‘Present ECS Centers at LIC’ list. Additionally, he/she has to have the same account in the mandate form as well.
What are Some of the Other Benefits of ECS Facility?
Apart from rendering lives easy through its versatile feature, ECS facility also allows customers to make payments through debit and credit cards as well. The policyholder will only be required to provide his/her accurate details to the bank for a standard deduction every month. The bank deducts the money only upon receiving an intimation from LIC.