If you had activated the ECS or direct debit payment mode for your LIC policy. By this, the premium amount will be debited monthly from your bank account on the specified ECS date. But sometimes this may not said to be continued since there maybe situations where you have insufficient balance in your account to pay your premium. In this case your ECS fails and your next ECS due will not be debited from your bank account until you pay your pending due to the current ECS failure.
To rectify the pending due, you shall need to go to any of branches of LIC office and you shall pay the outstanding due either by cash or cheque towards Life Insurance Corporation of India. After paying the current paying due at any of the counters, your next ECS due would be normal.
Given a example of how the above statement works.
Consider you are paying your premium for your LIC policy on monthly premium payment mode through ECS from your bank account. If your policy premium date is 13th of every month. In this case, your ECS payment date would be the 15t of every month. So for paying your policy premium, the amount would be deducted from your bank account on 15th. If suppose 15th is a holiday, then the premium will be deducted the next working day. If the ECS has failed for a particular month due to some reasons, you can pay your pending dues within 28th of the same month without any delay. There is a 15 day free fee grace period which is given for all the LIC policies with monthly premium payment mode. But then, you still have to pay the bank a charge of Rs.125 for the ECS failure. If you are paying the pending due after the 28th of the month, you would have to pay next month due in addition to the current month due. Totally, you would have to pay 2 month due at once along with the late fee.
