What is ECS/Direct Debit Payment?
ECS is Electronic Clearance Service. 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.
Conditions to met before setting up ECS?
To opt for ECS facility, LIC 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.
How to register for ECS?
1. Fill up Mandate Form is to be submitted to any of the LIC Branch, which should be
a) Duly signed by the policy holder
b) Signed by the account holder/s
c) Must be attested by the customer’s bank
d) Copy of the form MUST BE submitted to the bank
e) A cancelled Cheque Leaf
2. 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”
3. 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
4. 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
5. 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).
6. Policy holder should have a bank account in any of the cities mentioned in the “LIC ECS Centers List“. Apart from these centers, Policyholder having account with the banks with Core Banking facility in the Karnataka, Andhra Pradesh, and Tamilnadu states can opt for the R-ECS. R-ECS will be enabled in other states also as and when same is implemented by the RBI.
7. Mandate form can be given in any LIC Branch across the country but at least one of his policy should be serviced in that branch
8. 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
9. 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.
10. Policy holder should ensure that sufficient funds are available in the bank account at the time of debit date and mandate is not dishonoured
11. 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
12. For ECS(MLY) mode no receipt or notices will be dispatched. Yearly certificate will be sent by the branch in the month of April. Premium payment certificate can also be obtained through LIC website www.licindia.in after enrolling the policies.
LIC’s 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.
Things to take care
1- Debit dates are calculated automatically on the basis of Date of commencement as follows :
2- Arrears of premiums cannot be collected through ECS
3- 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
4- Under the policies registered under ECS mode, premium cannot be paid through any other payment channel.
5- This is a free service to LIC policyholders