14 alternate ways to pay your LIC Premium – Part 1

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
    • 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 ECS
  • 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)



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