14 alternate ways to pay your LIC Premium

Apart from visiting your nearest LIC branch to pay insurance premium, there are many other ways to pay premium – both online & offline. Check them out in detail.

LIC is one of the popular insurance company in India. Inspite of low IRR in its traditional products like money back plans or endownment plans, many investors just stick to this company. I've already posted number of articles on the same, but for those who are loyal to LIC, you need to pay premium regularly like always.

One of the traditional way and most difficult way is to visit your nearest branch with cash / cheque, stand in queue, deposit the cheque and get the receipt. Sometimes, the agent before you, will take more than 30 minutes to deposit premium for some of his customers. There are many other problems like lunch time off, printer problem, internet problem, etc.

Even some cases has come up, where agents have taken cheque from customers for renewal premium and did not deposit in office on time. Thus, the policy of the customer lapsed.

Seeing all this, LIC has introduced many other alternative channels to deposit renewal premium. I'll discuss all these options in detail for the benefit of policy holders. Part -1 of this series is given below. Will post next part soon.

All of them can be broadly classified into 2 categories – Online and Offline.


Online ways to pay your LIC premium

  • LIC Website
  • NetBanking
  • Banks
  • Axis Bank
  • Franchisees
  • AP Online
  • MP Online
  • Suvidha Infoserve
  • One Stop Shop
  • Easy Bill Limited
  • BillDesk
  • Merchant
  • Premium Point (Empowered Agents)
  • Life-Plus (SBA)
  • Retd. LIC Employee Cell
  • Offline
  • ECS
  • Billpay
  • ATM

Let's explore each of these options in detail.



ECS 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.

LIC has offered 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.

  • 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.
  • 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-to-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 complete grace period too may not be available.
  • Debit dates are calculated automatically on the basis of Date of commencement as follows :
  • Date of commencement 1st to 7th -> 7th of the same month
  • 8th to 15th -> 15th of the same month
  • 16th to 31st -> 28th of the same month.
  • Arrears of premiums cannot be collected through ECS.
  • If ECS is dishonoured due to any reason, ECS deduction will automatically stop for the further dues until the premiums are paid up-to-date at the branch cash counter.
  • Under the policies registered under ECS mode, premium cannot be paid through any other payment channel.


How to avail this facility :

A Mandate form is to be submitted to any of the LIC Branch, which should be

  • Duly signed by the policy holder.
  • Signed by the account holder/s .
  • Must be attested by the customer's bank.
  • A cancelled cheque/photocopy of cheque should be attached.
  • Copy of the form MUST BE submitted to the bank.
  • MICR code & Bank details must be clearly and correctly mentioned in the mandate form. MICR code is 9 digit code given at the bottom of the cheque where cheque number is mentioned. For All India Clearing cheques, MICR code is given on the first page of the Cheque book. MICR code should not begin or end with 000.
  • Account number must be only of 15 characters. If the same exceed 15 digits as in case of PNB bank accounts, bank should be enquired regarding the correct account number of the digit which should be dropped.
  • 3 copies of mandate forms should be filled. One is to be submitted to the bank, one to LIC and third copy can be retained by the policy holder after getting acknowledgement by the LIC branch.
  • If ECS is opted at NB stage, where policy number and exact premium amount is not available at the time of attestation of the mandate form by the bank, copy of the mandate form should be submitted after completion of the policy and filling the details (Policy number & Premium).
  • Policy holder should have a bank account in any of the cities mentioned at the Present ECS Centers at LIC list and same Account should be mentioned on the mandate form
  • Single mandate form can be given for number of policies at PS stage. Five policies can be added in a single form, if more, a separate signed list should be attached.
  • Mandate form can be given in any LIC Branch across the country but at least one policy should be serviced in that branch.
  • After registration of the ECS, acknowledgement letter should be obtained from the branch and correctness of the data entered specially the bank details must be checked.
  • For change in Bank details, fresh mandate form(fulfilling the conditions in point 1) should be submitted to the servicing branch or the branch where the policy was registered under ECS earlier. At the top of the form CHANGE IN BANK DETAILS should be prominently written.
  • Policy holder should ensure that sufficient funds are available in the bank account at the time of debit date and mandate is not dishonoured.
  • LIC will not be responsible for any dishonour raised by the Bank and any dispute regarding same should be taken up with the bank only.
  • LIC Utility or User Code for premium collection through ECS is 4009056. Many LIC ECS centers are registered with different user code, policy holder should obtain the correct User code from his LIC branch office.


ECS Mandate Dishonour:

Dishonour of ECS mandates may happen due to following reasons:

  • A/c closed / Transfered
  • No such Account
  • A/c description does not tally
  • Insufficient Balance
  • Not arranged for
  • Payment stopped by drawer
  • Payment stopped by court order
  • Mandate not received by bank
  • Miscellaneous
  • For the mandate dishonours, LIC sends a letter to the policy holder intimating the dishonour with reason. Premium for these policies is to be paid at the branch cash counter. If the reason is insufficient funds, dishonour charges Rs. 125/- will be payable in addition to the due premiums and the late fee ( if applicable).


If the reason of dishonour is mandate form not received, it may be due to non-submission of the mandate form to bank, copy of the mandate form should be submitted to the bank.

For reason 1 , either alternate bank details should be given or payment mode should be changed from ECS to Normal.

For reason 2 & 3, bank details must be checked for the correctness and in case of any error should be got rectified by the Servicing LIC Branch Office.



Benefits to the policyholders:

  • This is a free service to LIC policyholders.
  • This will save their time in visiting LIC Office to pay the premiums.LIC online premium
  • 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.

Click here to download ECS Centers at LIC.

Policyholders desirous of availing of this service may download the ECS Mandate Form given below.

Click here to download ECS Mandate Form -English(PDF format)
Click here to download ECS Mandate Form -Hindi(PDF format)



3 another ways viz. BillPay (Bill Junction and Bill Desk) and ATM.

Many banks allows you to pay your LIC premium through their websites. Some of the banks are listed below.


  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Federal Bank
  • Corporation Bank
  • Citibank

Authorised Service Providers (available only in select cities) :-

Tech Process ( Bill Junction)
Bill Desk

Services of Tech Process are available in following cities

Mumbai, Pune, Delhi, Kolkata, Ahmedabad, Chennai, Bangalore, Hyderabad & Chandigarh

The TECH PROCESS collects premiums through banks

Services of Bill Desk are available in following cities

Ahmedabad, Ajmer, Bangalore, Bhopal, Chandigarh, Chennai, Coimbatore, Delhi, Goa,Hyderabad,Indore, Jaipur, Jabalpur,Kanpur, Kochi, Kolhapur, Kolkata,Lucknow, Ludhiana,Mangalore, Mumbai,Nasik, Nagpur, PUne, Rajkot,Surat,Trivandrum & Vadodara.

Click here for the banks through which BILL DESK collects premiums.

This facility is absolutely free for all customers. No charges are to be paid to LIC / Bank/Service Provider for this facility. LIC pays service charges to the Bank/Service provider as per pre-decided rates. Policies with Ordinary Mode of payment i.e. Yearly, Half-Yearly and Quarterly Mode of payment are allowed under this scheme.

This facility can be availed only for INFORCE, NON-ULIP, NON-SSS POLICIES under YLY, HLY orQLY Mode. MLY mode policies cannot be registered under EBPP. Premium for ULIP & Health Insurance policies cannot be paid through this mode.

Through this payment option premium can be paid through CREDIT CARDS also.

Policy holder has to register his/her policy in the Banker’s site who will send the policies for Verification to LIC. After verifying the policies LIC will send acceptance to the Banker. For any reason (lapse policy, premium mis-match, particulars wrongly entered) if LIC rejects the registration, the information regarding same will be sent by the banker/service provider. In such case the policy is to be registered again on banker’s site. Old registration is treated as cancelled.

Invoice from LIC will be generated before one month of its due date and send to the Banker for uploading on their site. Premium can be paid either by giving standing instructions to the bank to debit the bank account/credit card account on a particular date or manually accepting the bill which can be paid by login to the banker’s site and making the payment online. Receipt will be posted to the address mentioned in the policy records after two or three days of payment by LIC. For this mode of payment e-receipt is not generated.

If premium is already paid through any other mode before receipt of the payment through EBPP or the premium amount does not match with premium required, the payment received through EBPP goes to refunds and the amount is refunded by direct credit to the bank/credit card account. It may take approx. 15 days.



Premium can be paid through the ATMs of the following Banks :

1. Axis Bank
2. Corporation Bank.

This facility is absolutely free for all customers. No charges are to be paid to LIC / Bank for this facility.

Customer has to register his policies through the bank website. Registration data as per the required format/mandate from the bank is to be submitted to the bank.

Bank sends the registration data for all the policies newly registered on next working day to PCMC in required format.

Policies with Ordinary Mode of payment i.e. Yearly, Half-Yearly and Quarterly Mode of payment are allowed under this scheme.

Policies with Mly Ordinary and SSS Mode are not allowed under this scheme. Policy should be in-force at the time of registration. ULIP policies and Health plans are not allowed under this scheme.

If premium is already paid through any other mode before receipt of the payment through ATM or the premium amount does not match with premium required, the payment received through ATM goes to refunds and the amount is refunded by direct credit to the bank account. It may take approx. 15 days.

All processing for this scheme will be done by PCMC, Mumbai similar to BillPay.


FAQ on BillPay / ATM

How to register for premium payment through Bill Pay/ATM?

Registration through Bill Pay can be done through the Bank/Service provider’s website or through a physical form issued by them.

On being approached, the service provider obtains a written mandate from you, authorizing him to realize the billed amount directly from your bank account. You may have to give the bank account details and other requisite details as required by the service provider.

ATM facility is available with AXIS BANK and CORPORATION BANK


Whether all policies can be registered through Bill Pay.

Only Non-ULIP, inforce policies can be registered through Bill Pay. MLY mode is not accepted through this payment mode.


In which cities do the authorised service providers operate from?

BillJunction.com has its operations in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad & Pune

Tech Process.com has its operations in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Ahmedabad, Pune, Baroda & Surat. They also have tie-ups with their partner banks viz. Bank of Baroda, IDBI Bank, ABN-AMRO Bank.


How much time is taken for the registration?

It is a one time process and forms are different for different banks / service providers. After submission of data to the bank / service provider the same is received by PCMC within 3-4 days for which confirmation / rejection is conveyed. Total time taken for registration may extend up to 10 days.


How to add the policy details at the authorised bank/service provider’s web-site?

Using the login & password provided by the bank/service provider, you can log on to your account page at the bank/service provider’s website.

You have to add LIC as biller with the policy details and other requisite information. In general, you would have to enter the policy number, the installment premium, email-id and any other information. This is a one-time process for each policy.

Some of the service provider’s/bank’s web-sites have a demo page showing the process of adding the billers.


How does LIC acknowledge the registered policy details?

The bank/service provider sends these details to LIC for validation & confirmation of the registration data at pre-determined intervals.

LIC validates the registration data, appends the same to the database and informs the bank/service provider about the registration status.

Bank/Service Provider inform the policy holder through SMS/mail/Message on their website.


When can I pay the insurance premiums?

On confirmation of the registration, LIC will regularly send the bills/invoices mentioning the due dates, premium amount, late fees, validity date, etc to the service provider/bank.

As and when premium becomes payable under the registered policy, LIC sends the bills to the bank/service provider, and the information will be displayed by the bank/service provider in your net-banking account page.

Amount can be paid through net banking/credit card or any mode through which the payment is registered by you. Standing instructions also can be given to the bank/service provider to debit the account on a specific date.


What are the charges for the payment through BILL PRESENTMENT?

The System is free for the customers. For LIC payments no fee should be charged by the banks or the service providers.


What are the important points to be noted for availing this payment facility?

Once registered for Premiums payments thru Net-Banking/Phone-Banking, you should avoid paying at cash counters, because there are many instances where payment for the same due-month is received twice.

Since renewal premium receipts are dispatched to the postal address as per your policy records, please ensure that your policy records are updated with your current address.

In case you have not received the renewal premium receipt, you may collect the premium paid certificate from the servicing branch of your policy. Duplicate receipts cannot be printed in any case.

As the payment is received by LIC through the Bank or the service provider, same may not be received on the same day of payment by the policy holder, hence there is short time-lag between the date of debit in your bank account and the date when the policy reflects the updated status.



Online Payment Gateway is LICs initiative to provide on demand premium collection service within a few clicks! The payment gateway (PG) initiative is an important component of the offer. It provides for real-time payment of renewal premium-dues through the portal. This functionality is available only to registered customers who have enrolled their policies on LICs website – www.licindia.in

LIC premiums can be paid using Net Banking accounts with any of the banks available in the drop list.

At the time of writing this article, the following banks can be used to for Premium Payment Through LIC Portal.


  • ABN & AMRO Bank
  • Allahabad Bank

For latest authorized Banks Click Here.

Relevant Condition


  • Premium can be Collected only for Inforce, Ordinary policies under all modes (YLY,HLY, QLY & MLY) . Premium for policies under Salary Savings Scheme (SSS) cannot be paid online.
  • From April,2009 Premium can be collected for ULIP Policies also, however, presently premium for Health Insurance policies is not allowed.
  • Premium can be collected from 6 months before from the Due Date and till the policy is in force, except for some term insurance policies. For some Term Insurance policies Within 15days only – plans 153- Anmol
  • Jeevan,164-Anmol Jeevan-1, 177- Amulya Jeevan, 190 Amulya Jeevan.
  • Late fee is computed @8%. Minimum late fee is Rs 5/-.
  • Premium cannot be collected for Next Financial Year. Ex During March 2010 premium cannot be collected for April 2010.

Here is a simple step-by-step guide regarding premium payment using this facility:

  • Policies are to be enrolled on LIC website after obtaining user-id. Enrollment must be with correct premium amount. Policies on the life of self and family members (spouse and children only) can be enrolled as date of birth mentioned in the policy is matched with the same in profile. If Dt of Birth does not match, the policies cannot be enrolled.
  • Once the policies are enrolled, list of policies where premium is due can be viewed by clicking on the link <Pay Premium Online>.
  • Policies for which premium is desired to be paid are selected by clicking in the selection box.
  • After confirming the total payment, Dialog box appears with message cautioning the policy holder not to make the payment again if already tried to pay earlier without checking the bank account. Next screen will appear after clicking at OK.
  • Bank is to be selected from the drop-down list.
  • Browser takes to the Bank site, from where the policy holder can make the payment using his bank user-id and password.
  • The premium receipt for the payment through Portal/Payment Gateway can be printed online and will also be e-mailed to the Policy Holder at the same time. Simultaneously successful/unsuccessful transaction message will be flashed.
  • Bank balance must be verified after the transaction is complete.
  • If the premium amount is debited from the PHs Bank Account but error page displayed it may be due to session timed out or network error. In such case a digitally signed receipt will be sent to his profile email id in three working days after receiving the confirmation from his Bank. The premium receipt will also be available under his user-id at Customer Services :View Pay Premium Online – Receipts .
  • The digital receipt received for online payment is to be validated, till then “invalid signature” message will appear on the reciept. Procedure for the validation is given on URL http://www.licindia.in/e_receipt_verification.htm. The certificate can be downloaded by clicking here and is to be added to trust settings as trusted root, after which the signature will appear as “valid signature”. This is a one time process. Receipt is valid without signature validation also.
  • Policy holder must check the bank account before trying for the second payment for the same due. If bank account is debited they are requested not to attempt for second payment.
  • If the amount is excess due to double payment, same is refunded to the service provider Bill Desk, who in turn refund the same to the respective bank to credit the customers account directly.
  • The updation of premium in real time.




  • This is a simple process with one time enrollment of the policies.
  • Premium can be paid anytime and anywhere. Most convenient method of payment if the policy holder is out of country.
  • Valid premium receipt is received instantly.
  • It is also a secure arrangement, as the policy data is not shared between LIC and Banks over net as only the amount to be paid is encrypted and transported. The login id at both the sites (LIC and Bank) is known only to the policy holder.
  • And above all there is no charge for the policy holder to avail this service.

Rating: 5 out of 5

Search this site: