- 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 as well as existing policies including ULIP policies
- 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.
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March 5, 2011