Re: Premium payment under ECS mode

Size: px

Start display at page:

Download "Re: Premium payment under ECS mode"

Buck Kerry Knight
7 years ago
Views:

1 CRM Department, Central Office. 3 rd Floor (West Wing), Yogakshema, Jeevan Bima Marg, P.O.Box No.19953, Mumbai Tel : , Fax : co_crm@licindia.com Ref:CO/CRM/ECS/588/ To All Zonal Managers, All HODs of C.O. All Sr./Divisional Managers MDC, ZTCs and Audit & Inspection Re: Premium payment under ECS mode It has been decided to introduce ECS channel of premium payment for monthly mode policies from the Proposal stage. So, now we shall have 3 types of Monthly modes viz- Monthly Ordinary, Monthly SSS and Monthly ECS. The ECS Mandate will be collected along with the proposal form and data captured by the branch. The details are given below: 1. ECS mode is a monthly mode. However, no surcharge of 5% will be levied. 2. The ECS Mandate will be collected along with the proposal form, counter signed by the banker confirming the MICR No. and Bank Account no. along with a cancelled cheque leaf. The Mandate form to be used is as per Annexure-I (enclosed) 3. In the first page of the proposal form, the mode should be clearly indicated as MLY ECS. 4. Only One monthly premium shall be collected at the NB stage. 5. A special screen will be displayed by the FEAP NB Module for entering the ECS data like Account holder s name, Name of Bank, Bank Account Number, MICR code, Mandate date and ECS Cell Office code.(pcmc for Mumbai and Thane policies and DO code for other Division policies) 6. On completion of proposal and creation of policy master, the transaction record required to create the ECS master will be automatically created and it will instantly update the ECS demand master at the ECS Cell. (in PCMC in case of Mumbai and Thane and in DO for other Divisions) 7. The debit dates shall be 7 th, 15 th and 28 th of a month. The debit date should be the one that is either equal to risk date (day) or the date (day) that immediately follows it. For example: Risk date: , party opts for 1 st of every month Date forced by our system : 28 th of every month 8. The Proposal shall be completed only when the Mandate submitted by the proposer/policyholder is found to be correct and complete in all respects i.e.

2 any discrepancy with regard to Bank Account Number, MICR code etc. shall be treated as proposal pending for requirement and may be completed only after receipt of a mandate with complete and correct information. 9. The acknowledgement letter for ECS mode shall be dispatched along with the policy bond as per annexure II.(enclosed) 10. When the proposal is completed, the system will also generate a mandate ID which shall be copied on the mandate form and printed on the acknowledgement letter. 11. The mandate form, after the mandate ID is copied on to it, shall be filed in the policy docket and scanned as and when the branch comes up for EDMS. 12. Notice printing shall be suspended for policies under MLY-ECS mode. 13. In case of dishonour, the necessary charges shall be collected at the servicing branch along with all the premium dues upto that date, in cash. 14. Annual premium paid statement shall be sent to the policyholder by the servicing branch(the exact time when the same has to be sent will be informed later) 15. Change to Qly/HLY/YLY shall be allowed only if the premium is paid till next anniversary 16. In case of transfer of policy from ECS branch to non-ecs branch (i.e. a branch for which the corresponding Divisional center is not an ECS center) the policyholder should be informed to opt for change of mode from ECS to other mode and 5% extra shall be charged for Monthly mode. 17. Presently the ECS facility is available only in the centers as per Annexure III (enclosed). 18. For change of Bank account no. a fresh mandate form, countersigned by banker shall be collected. 19. The ECS data will be in the DO FEAP Server and separate instructions regarding the same have been sent to Divisions by IT Dept. The corresponding accounting unit will also be in DO and separate instructions will be issued by F&A in this regard. 20. The ZO/DO will have to arrange with the sponsor bank for implementing the ECS facility. Separate instructions in this regard have been issued by F&A Department. The new ECS mode of payment will be only for policies under monthly mode to start with. It is proposed to implement the new ECS mode of payment only when the necessary IT programs are ready. All Offices are instructed to follow the above guidelines. Encl: Annexure I, II & III Executive Director (CRM)

3 Annexure-I Tel.No. : LIFE INSURANCE CORPORATION OF INDIA Divisional Office:_XXXXXXXXXXX Mandate ID POLICYHOLDERS MANDATE FORM FOR PAYING PREMIUM THROUGH ELECTRONIC CLEARANCE SERVICE (DEBIT CLEARING) ECS MODE 1. (A) Name of the Policyholder/s (B) Policy Details : Sr. No. New proposal/ * Policy No. Name of the Insured Self &/or relatives Mode Premium Amount Debit Date Option ** *(for new proposal single mandate form to be used and for other existing policies, separate Mandate. For more than 5 policies please give details in a separate annexure.) ** premium will be debited on the 7 th, 15 th and 28 th (For existing policies only) (C) Tel.No. Res. : Mobile No. Off. : ID : (not mandatory, but will facilitate service, if furnished ) 2. Particulars of Bank A/c (from which you want to pay the premium) (a) Bank Name (b) Branch Name & Address (c) Name of the Account Holder (d) Account Type (Savings Bank Account/Current A/c or Cash/Credit) (e) Account Number (as appearing on the Cheque Book) (f) 9 Digit MICR CODE NO. of the Bank and Branch *** (Attach a photocopy/cancelled leaf of your cheque) ***MICR Code for the purpose of ECS may be different from that printed on the cheque leaf, in some cases. Please check up with your bank. 3. I agree that this Mandate will form an integral part of my proposal. 4..If in future my Bank Account is transferred to a city where ECS facility is not available, a change of mode will be necessary which will involve change in premium. I/we, hereby, declare that the particulars given above are correct and complete. I/we being the holder/s of the above policy/policies express my/our willingness to remit the premium/s referred to above through participation in ECS of National Clearing Cell of Reserve Bank of India and hereby authorise the Life Insurance Corporation of India to raise the debits on my/our Bank Account towards the said premium/s due referred to above. If any transaction is delayed or not effected at all for the reasons of incomplete or incorrect information or non-availability of funds or closure of Accounts etc., I would not hold LIC responsible. I also understand that I can pay the premium only on behalf of my near relatives as prescribed by the Income-Tax Act, Date : Place : Signature/s of the Policyholder/s Signature of the A/c holder (in case the policyholder differs from that of the A/c holder) P.S.: i. one copy of the Form should be furnished to the Bank ii Instead of Premium receipt, Annual Premium Payment Certificate will be sent. Certified that the bank particulars regarding Bank A/C No. & MICR No. are correct as per our records. (For multi city cheques, city code to be confirmed ) Date : Bank Seal signature of the Bank Official

4 ANNEXURE-II : ECS ACKNOWLEDGEMENT LETTER [TEMPLATE] LIFE INSURANCE CORPORATION OF INDIA BRANCH: To, Date: Name Address 1 ADDRESS 2 ADDRESS 3 Telephone: Dear Sir/Madam Re : ECS Of POLICIES UNDER MANDATE SERIAL NO.: We are happy to inform that we have registered the following policy/policies belonging to you in our ECS system of premium payment as per the Mandate furnished by you : SL POL.NO DUE DT. PREM AMT DEBIT DATE [day] Bank Name : Account type : SAVING /currenta/c Bank a/c. no. : Bank MICR No : A/C.holder name: Kindly check the details mentioned in this letter thoroughly. For any assistance or discrepancy, kindly contact us at the address mentioned below. IMPORTANT *******KINDLY ENSURE THAT A COPY OF THE MANDATE FORM IS SUBMITTED To YOUR BANK AS PER RBI GUIDELINES IN ORDER TO AVOID ECS MANDATE DISHONOUR.********* IMPORTANT *******In case of any change in policy/bank details a fresh mandate is required.***** Thanking you. From : [PCMC CELL/ECS cell], LIC OF INDIA Address 1 Address 2 Address 3 -ID: Telephone: [letter generated by computer. signature not required]

5 LIST OF ECS CENTERS - Annexure III Managed by RBI* 1 Ahmedabad 2 Bangalore 3 Bhubneshwar 4 Kolkata 5 Chandigarh 6 Chennai 7 Guwahati 8 Hyderabad 9 Jaipur 10 Kanpur 11 Mumbai 12 Nagpur 13 New Delhi 14 Patna 15 Thiru puram Managed by State Bank of India 1 Baroda 2 Dehradun 3 Nashik 4 Panaji 5 Surat 6 Trichy 7 Trichur 8 Jodhpur 9 Gwalior 10 Jabalpur 11 Raipur 12 Calicut 13 Pondicherry 14 Hubli 15 Tirupur 16 Sholapur 17 Ranchi Managed by PNB 1 Agra 2 Allahabad 3 Jalandhar 4 Lucknow 5 Ludhiana 6 Varanasi 7 Kolhapur 8 Aurangabad 9 Mysore 10 Erode 11 Udaipur 12 Gorakhpur 13 Jammu

6 Managed by State Bank of Indore 1 Indore Managed by Union Bank of India 1 Pune 2 Salem 3 Jamshedpur Managed by Andhra Bank 1 Visakhapatnam Managed by Corporation Bank 1 Mangalore Managed by Bank of Baroda 1 Coimbatore 2 Rajkot Managed by State Bank of Travancore 1 Kochi / Ernakulam Managed by Central Bank of India 1 Bhopal Managed by Canara Bank 1 Madurai Managed by oriental Bank of Commerce 1 Amritsar Managed by State Bank of Hyderabad 1 Vijaywada Managed by State Bank Bikaner & Jaipur 1 Bhilwara

FAQ on ECS - Credit Clearing

FAQ on ECS - Credit Clearing 1. What is ECS (Credit Clearing)? This is a method of payment whereby the institutions having to make a large number of payments (such as interest / dividend) can directly