Most of you must have a life insurance cover from Life Corporation of India (LIC) which is one of the leading Life Insurers in the country. Only some of you know the choices made available by LIC to pay the premium. So let us talk about the available channels to make payment of the premium.
It is imprudent if you trust your LIC Agent to come up to you and will collect your premium. Generally, Life Insurance scheme is a long-term pact between the insurer and the insured. Most of these agents’ are part-time professionals. If not, in all prospects they might skip the line of work after a few years. Therefore, it is always advised to pay the LIC premium payment on your own in time.
Life Insurance Corporation offers a solution to pay premiums through various mode of online LIC payment. This post will let you look into all the options made available to make payments for LIC Premium.
Let us begin!
LIC Offline Premium Payment Options:
- ECS Payment
- Bill Pay or EBPP
- ATM Payments
The ECS Payments service was started in the years 2004 by LIC. Once you have opted for the ECS payment facility than the premium paid by you will get deducted from the registered bank on a predestined date and the same will be submitted to the LIC. To trigger this facility, you should submit ECS mandate form to the LIC and authorise the bank to withhold LIC premium. This is the most consistent and proficient means of making payment of the premium. You can avail the facility if the customers own a bank account and the bank is clearinghouse’s member. Some conditions to reward the ECS payment facility are given below:
- You can either go for ECS payment facility whilst buying a new scheme or at later stages of the period of the policy.
- If the payment of the premium is done on monthly basis, then 5% added extra premium charged under the normal monthly premium payment will not be claimed.
- You will not get any receipt. Nevertheless, the certificate for the yearly premium paid by the LIC’s servicing branch.
- You can pick monthly/quarterly/half-yearly/yearly mode of premium payment.
- To avail this facility, there should not be any premiums due. Also, the subsequent date of the premium should be for a minimum of one month from the ECS option’s date.
- 7th, 15th and 28th of a month are the dates made available for ECS.
- If there are any premium’s arrears to be paid, then it will be impossible via ECS.
- If you have picked ECS facility then you can’t make payment of the premiums with any other channels available.
ECS is not available anymore. They have been replaced by the NACH system.
Bill Pay or EBPP:
Electronic Bill Presentment and Payment (EBPP) or Bill Pay is one another free service. The insured is required to register his scheme on the site of the Banker under this service. Banks consecutively will send your information to the Life Insurance Corporation of India (LIC). When you are done with the authentication, the insured can pay LIC premium payment either by choosing the standing instruction method of Bank or via the internet banking facility of the Bank. You will be sent a receipt to the registered address within 3-4 days. You cannot avail an e-receipt for this facility. You can make payment of the premium even through your credit cards.
The EBPP or Bill Pay facility is made available for active policies, non-SSS (monthly mode of the payment) and non-ULIP. Authorised Banks that offer such facility are listed below:
- ICICI Bank
- HDFC Bank
- Federal Bank
- Axis Bank
- Citi Bank
- Corporation Bank
- LIC Credit Cards
Payment through ATM:
You can make LIC premium payment by using an ATM of Corporation Bank and Axis Bank. This service is free and even banks do not charge anything. To make use of this facility, you should register yourself with the Banks that offer the necessary policy information. The policies with quarterly, half-yearly and yearly mode are permitted. Nevertheless, SSS mode or monthly mode of payments is not allowed.
Online Premium Payment Options of LIC:
- Website of LIC
- Authorised Banks namely, Axis Bank and Corporation Bank
- Agents Collection Point
- Senior Business Associate
- Retired Employees Collection Payment
Website of LIC:
You can make payment of the premium by registering yourself once on the official website of LIC. To make premium payment you have to login LIC online portal (www.licindia[dot]com) where you can make payments via internet banking services. You can pay the LIC premium payment either via registering as a consumer or without any registration. A few features are listed below:
- You can make payment for all the active policies. All the modes of payment, except SSS or monthly mode, are allowed to pay.
- You can pay the premiums for all the ULIP and endowment plans. But not for any of the health insurance plans.
- You cannot pay the premiums for the next fiscal year
- This facility is online. Hence, you can make payment of the premiums even if you are abroad.
- You will get a valid receipt as a proof of your payment immediately.
- The service is free of cost.
- You can make payment via internet banking or use debit card or credit card.
You can make payment from any of the two authorised banks mentioned below:
- Corporation Bank
- Axis Bank
However, this is because LIC has mentioned it on the official website that you can make LIC premium payment only at the extension counter or the branch or you can pay either via Cheque or Cash. Some features of this service are mentioned below:
- You can make payment for active policies only. Monthly payable policies or ULIPs are not allowed to compensate.
- You cannot pay the premium payable for the subsequent fiscal year.
- The bank will give a receipt, not the LIC.
You can make payment of the premiums via many of the registered Private or Government Companies. You can shell out the premium only in the form of cash.
Some of the features are as under:
- You can make payment in the form of cash.
- You can pay for all the active plans, non-monthly plans, and non-ULIPs
- You cannot make payment of the premium for the upcoming fiscal year.
- The collection centres will issue the signed receipts.
- This is again a free facility
The registered franchisees are mentioned below:
- AP Online
- MP Online
- Suvidha Infoserve Pvt. Ltd.
- Easy Bill Ltd.
Agents Collection Point:
The Agents Collection Point is again an offline option. Generally, some agents are permitted to collect LIC premiums either through cheque or through cash. Some of the features of this service are:
- You can make payment of the premium for the entire active and all mode plans, except SSS or monthly mode.
- You can pay either in the form of cheque or cash. Outstation cheques are not permitted.
- This is a free service.
Senior Business Associate
Some senior development officers are permitted to collect the premiums. The features of this facility are more or less equal to that of Agent’s Collection Point. Apart from hoarding the premium, these senior development officers offer the services mentioned below:
- Issue of the status of policy
- Issue of Surrender value/Revival/Loan quotations
- Issue of the forms
- Issue of the certificates to the insured for income tax
- ULIP statement
Retired Employees Collection Payment
The employees of LIC who got retired are authorised to collect the insurance premium. They can only collect either in the form of a cheque or in the form of cash. Some features of this facility are mentioned below:
- You can pay the premium only for active plans, and all modes, except SSS.
- Outstation cheques are not permitted
- This is also a free facility offered by LIC.
This information will assist you to choose a right way to make your LIC premium payment.