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
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.
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.
A Mandate form is to be submitted to any of the LIC Branch, which should be
Dishonour of ECS mandates may happen due to following reasons:
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.
ANY ISSUE REGARDING DISHONOUR IS TO BE TAKEN UP WITH THE BANK ONLY.
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
Click here to download ECS Mandate Form -Hindi(PDF format)
FOR ANY GENERAL QUERIES LIC CALL CENTER SHOULD BE CONTACTED AT 1251
Many banks allows you to pay your LIC premium through their websites. Some of the banks are listed below.
Authorised Service Providers (available only in select cities) :-
Tech Process ( Bill Junction)
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.
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
Only Non-ULIP, inforce policies can be registered through Bill Pay. MLY mode is not accepted through this payment mode.
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.
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.
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.
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.
The System is free for the customers. For LIC payments no fee should be charged by the banks or the service providers.
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.
For latest authorized Banks Click Here.
Here is a simple step-by-step guide regarding premium payment using this facility:
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