Life Insurance Corporation of India was established in 1956 through an Act of the Indian Parliament. It is the largest public-sector Indian insurer synonymous with the life insurance business. LIC has provided you with an eclectic choice for paying various product premiums with the changing times. You can choose to pay online and offline according to your convenience, far removed from the practice of relying on the agent. LIC offers multiple premium payment options as discussed below.Read more
Save upto ₹46,800 in tax under Sec 80C
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When you buy a LIC policy, you express your premium payment frequency to suit your financial status and convenience. Thus, you can choose to pay the premium monthly, quarterly, half-yearly, and yearly. However, the monthly frequency has gained popularity due to its pocket-friendly nature. So, what are ways to pay the premium?
|LIC Portal||Authorized Bank||Franchisees||Merchants|
|Net Banking||Axis Bank||AP Online||Premium Point|
|Debit Card||Corporation Bank||MP Online||Life-Plus|
|Credit Card||Suvidha||Retired LIC Staff|
|Easy Bill Pay||Paytm|
The above grid is only indicative and more options are available for paying a timely premium to avoid losing risk coverage.
You can pay the LIC premium offline at LIC Branches, authorized banks, and selected merchants. You can make payment in:
Cheque or Demand Draft
Axis bank is one of the two banks authorized to accept LIC premiums. The process is user-friendly and straightforward with the option to pay online and offline.
Cheque or Demand Draft on Axis Bank.
You can deposit the premium in any Axis Bank Branch or extension counters across India. A signed receipt is issued on behalf of LIC as proof of premium payment. A single receipt is issued for multiple policies of an individual policyholder if paid together in one go.
You can pay the premium at the bank’s portal on the landing page for premium payment. However, you must remember the following points while transacting for LIC premium payment.
You can pay a premium for active policies only. Any payment after the due date and the grace period is liable to be rejected.
You can pay premium for half-yearly and yearly frequencies.
You can pay the premium 30 days in advance for LIC policies. However, you can pay only 15 days before the due date for term policies.
Late premium payments attract a fee of 8% of the premium amount, while the minimum is Rs.5.
Premium is accepted for all policies barring ULIP and Salary Savings Scheme Policy. Similarly, Health Insurance premiums are also not accepted.
You can pay the premium only for the current financial year. It implies that no advance premium for the upcoming financial year is accepted.
You do not pay any service charges for the facility.
Premium payment is updated in real-time at the insurer.
LIC has authorized Axis Bank and Corporation Bank to accept their premium through ATMs. However, neither LIC nor the banks recover any charges from users. First, you must register for “Bill Pay” to use the premium payment facility. Here is a closer look at the procedure of ATM payment.
Register at the service provider or the bank’s website online or through a physical form.
Submit a written mandate to realize the premium directly from the bank account.
Provide requisite information.
Register your policies through the Axis Bank’s portal and submit the mandate in the prescribed format.
The bank transmits your registration data to PCMC the next working day to complete the process.
Points to Note:
Only quarterly, half-yearly, and yearly premium payment frequency is allowed.
You cannot pay a monthly premium or Salary Savings Scheme, ULIP, or Health Insurance.
You can pay the premium for active policies only.
If the premium is already paid elsewhere or does not match, a refund is automatically initiated for the ATM transaction. However, it may take up to 15 days for the refund to be reflected in your bank account.
As per the LICs alternate Channel mechanism, Axis Bank is authorized to collect their premium under Electronic Bill Presentment and Payment (EBPP) mechanism. Accordingly, you can pay a LIC premium using their Internet Banking “Bills Online” facility. The steps to follow are:
Log in to Axis Internet Banking
Select Payments Pay Bills
Add the new biller or select the already registered ones
Select the Insurance Company for premium payment
Input the details asked and the premium amount
Verify payment with OTP
Paying LIC premium has never been easier. While the largest Indian insurer provides many options to pay offline and online branches, you can explore many other options. Accordingly, Axis Bank is authorized to collect LIC premiums from their account holders through multiple channels per their convenience. You do not pay any fee for the facility but comply with their underlying rules to avail of it.
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