Banks are switching from ECS (Electronic Clearing System) to NACH (National Automated Clearing House). So if you want register ECS again with another bank account you need to give fresh NACH mandate, after clearing pending premiums.
Things to do First:
1. If you want to register auto debit through ECS/NACH, bill desk or credit card or any bank wallets first convert your NACH/ECS monthly to ordinary Monthly/Quarterly/Half-yearly/Yearly. Then only you will be able to change your NACH/ECS Mandate.
2. There should be a minimum gap of 15 days for next NACH/ECS date. All the premiums due till 15 days from current date in case of monthly mode and 30 days in case of other modes must have been paid.
3. You have to pay the premium in cash for any missed LIC premium at collecting branch along with late charges (if any) and charges from bank (around Rs. 125). You also have to pay advance payment of two months LIC Policy premium.
4. Once you made the pending premium and bouncing charges, your NACH/ECS will again start again.
How to Avail this facility:
1. A LIC NACH Mandate form (Duly signed by the policy holder, also needs to be signed by the account holder, if different) is to be submitted to any of the LIC Branch.
2. A cancelled Cheque should be attached.
3. Customer is not required to get the NACH mandate attested or validated from his bank.
4. LIC will send scanned copy of mandate to customer’s bank for validation.
Things to take Care
1. ECS/NACH mandate form can be submitted in any LIC Branch Office subject to at least one policy being serviced at that branch.
2. If the NACH/ECS mandate is not honoured due to lack of funds in your account you will have to pay in cash at any cash counter of LIC Branch. You will also have to pay penalty. If this payment is not made within a stipulated time, you may have to pay two installments with penalty.
3. Debit dates allowed: only 7th, 15th and 28th of the month. (Both at NB & PS Stage) which are calculated automatically on the basis of Date of commencement as follows:
NACH Debit Date
NACH Debit dates for deduction of premium will be fixed on the basis Of date of commencement of policy, as follows:
4. For NACH (monthly) mode no receipt or notices will be dispatched. Premium payment certificate can be obtained through LIC website, after enrolling the policy. For other modes receipts will be sent by ordinary post.
5. If a policy holder desires to discontinue the NACH facility, request should be given to the servicing branch at least 20 days in advance of the debit date for monthly mode policies and 30 days in advance for other modes.
6. NACH mandate form can be submitted in any LIC Branch.
7. NACH facility can be opted only if bank from which premium is to be paid is on NACH board and bank account is CBS (core banking solutions) compatible.