Have you missed to deposit your last LIC premium on time? Do find remembering the premium due dates a tiresome process? Do you have multiple policies with different due dates? You want to take policy in ECS mode but your bank is not connected to any ECS center? Then Direct debit facility is the solution for you, only requirement is you must have a bank account in ICICI, corporation bank or State bank of India. Till now LIC of India have tie up with these three banks only for Direct Debit.
This facility is different than the ECS system in which clearing house is also involved, while direct debit is a provision between LIC and bank, on due date bank deduct the premium from your account and deposit in the account of LIC of India pool account with same bank. After the LIC received your payments in its account it is then appropriated in your policy. Direct debit facility can be availed in any branch of ICICI, corporation and SBI even if they are not connected to ECS system. Even in through rural branched of these bank direct debit facility can be enabled. Direct debit facility is available for both new and existing policy holders of LIC of India.
Process of enabling direct debit facility is very simple.
- Fill the form of debit facility in 2 copies
- Submit one to bank (ICICI, Corporation or SBI)
- Get the other copy attested and submit to LIC of India (Bank may charge for attestation as per their rules). Submission of attested mandate form to LIC of India is very important, LIC do not accept unattested mandate form.
Other important things about direct debit facility
- Debit facility can be taken at any stage of policy and for any mode of premium payment
- Bank account must have sufficient balance on debit date
- Under this facility, only positive/honoured transactions will be accounted.
- If dishonored due to reason “Insufficient balance” then dishonors charges Rs. 125 per transaction will be charged by LIC of India.
- If any due is dishonored, payment for the dishonor due and all the installments due up to the date of payment are to be paid in cash or DD at any LIC Branch cash counter.
- Debit facility will benefit the policy holders at locations where there is no ECS clearing house.
To download mandate for Direct debit facility Click Here