List of LIC’s online and offline premium payment options

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Many of us have life insurance from LIC, a leading Life Insurer in India. Only a few know the options available with LIC to pay their premium. So let us discuss all available alternative channels to pay the premium.

LIC Premium Payment-Alternative Channels

It is foolish if you believe on your LIC Agent to come to your doorstep and will collect the premium. Usually Life Insurance is a long-term contract. Many of these agents’ are part time professionals. Otherwise, in all probability they may skip this profession after a few years. Hence, it is always advisable to pay on your own within due date.

In this post, we will look into all available options of LIC premium payment. It is nicely described in below info graph of LIC. You may also find this info graph on their LIC Website. Please note that LIC listed the options like AUTHORIZED BANKS AND MERCHANT as ONLINE mode of payment. However, it is very wrong.

LIC Premium Payment Methods

As it is divided above, let us start our discussion one by one.

LIC’s Offline Premium Payment Options

1) ECS Payment-This service has been started by LIC since 2004. Once you opt this facility then your premium will be deducted from your registered bank on a pre-determined date and the same will be remitted to LIC. To activate this facility, you must submit ECS mandate form to LIC and authorize your bank to deduct LIC premium. This is most reliable and efficient way of premium payment option. This facility can be availed if customers have a bank account and that bank is a member of the clearinghouse (Check with your bank for this facility). Few conditions to avail these facilities are listed below.

  • You can either opt this facility while buying new plan or at a later stage of policy period too.
  • If your premium payment is monthly, then the 5% additional extra premium charged under normal monthly premium payment will be waived off.
  • You will not receive any receipt for this. However, you can avail the yearly premium paid certificate by the servicing branch of LIC.
  • You can opt for Yearly/Half Yearly/Quarterly/Monthly mode of premium payment.
  • To opt this facility, there must not be any dues of premium. Also the next premium date must be at least one month from the date of ECS option.
  • Dates available for ECS are 7th, 15th, and 28th of a month.
  • If you have any arrears of premium to be paid, then this will not be possible through ECS.
  • If you opted for ECS then you cannot pay the premiums with any other available channels.

ECS now no more available. Now the NACH system started. Refer the full post about NACH HERE.

2) Bill Pay or EBPP-This is one more free service called as Bill Pay or EBPP (Electronic Bill Presentment and Payment). Under this service, the policyholder has to register his policy on the Banker’s site. Banks in turn will send the information to LIC. Once the authentication is done, then policyholder can pay the premium either opting Bank’s standing instruction method or through the bank’s internet banking facility. A receipt will be sent to the registered address after 2-3 days. An E – receipt will not be available for this method of payment. You can pay the premium even through CREDIT CARDS also.

This facility is available for active policies, non-ULIP, and non-SSS (monthly mode of payment). Authorized Banks for this facility are as below.

  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Federal Bank
  • Corporation Bank
  • Citi Bank
  • LIC Credit Cards

3) ATM Payment-You can pay the premiums even through an ATM of Axis Bank and Corporation Bank. This facility is also free and even banks will not charge you anything. To avail this facility, you must register with Banks by providing necessary policy information. Policies with Yearly, Half Yearly and Quarterly mode are allowed. However, monthly or SSS mode of payments not allowed.

LIC’s Online Premium Payment Options

1) LIC Website-You can by the premium by registering one time on LIC website. You can pay the premiums through net banking facility. You can check the authorized banks by clicking HERE. You can pay the premiums either through registering as a customer or without registering also (My earlier post on this How to pay LIC premium online without registration?). The detailed description is available HERE. Few features are listed below.

  • You can pay for all active policies. All modes of payment (except monthly or SSS) are allowed to pay.
  • You can pay premiums for all endowment and ULIP plans. But not for any health insurance plans.
  • Premium cannot be payable for next financial year.
  • This is an online payment facility. Therefore, even one can pay the premium by being outside country.
  • You receive the valid premium receipt immediately.
  • This is fully free service.
  • You can pay through net banking or using your credit/debit card.

2) Authorized Banks-You can pay the premium from the below mentioned two authorized banks.

  1. a) Axis Bank and b) Corporation Bank.

However, I am still unable to understand why LIC included this option as an online payment method. Because LIC mentioned on its site that you can pay the premium only at branch or extension counter or you can pay either through CASH OR CHEQUE.  Few features of this facility are

  • You can pay only for active policies. ULIP plans or monthly payable plans are not allowed to pay.
  • The premium cannot be payable for next financial year.
  • You will get a receipt from the bank, but not from LIC.

3) Franchisees-You can pay the premium through many of registered Govt and Private Companies. Again, this is wrongly mentioned in the above flowchart as the online payment option wrongly. However, it is mentioned that you can pay the premium only through CASH 🙂 Few features are listed below.

  • You can pay only through CASH.
  • You can pay for all active policies, non-ULIPs and non-monthly policies.
  • You cannot pay the premium for next financial year.
  • Signed receipt will be issued by these collection centers.
  • This is also a free service.

The registered franchisees are as below.


4) Agents collection point

This facility is again wrongly listed in above flow chart as an online option. Usually few agents are allowed to collect premium either through cash or through cheque. Few features of this facility are as below.

  • You can pay the premiums for all active and all mode policies (except monthly or SSS).
  • You can pay either through cash or through cheque. Outstation cheques not allowed.
  • This is again free facility.

5) Senior business associate

Few senior development officers are allowed to collect the premium. Features are more or equal to what is listed in agent’s collection point. Apart from collecting premium, these development officers provide below service to you.

  • Issue of policy status.
  • Issue of Loan/Revival/Surrender Value quotations.
  • Issue of Forms.
  • Issue of Certificates to the policyholders for income tax purpose.
  • ULIP Statements.

6) Retired Employees collection payment

Retired LIC employees authorized to collect insurance premium. They can only collect either through cash or through cheque. Features of this facility are listed as below.

  • The premium can be payable only for active policies, and all modes (except SSS) policies can be payable.
  • Outstation cheques not allowed.
  • This is one more free service from LIC.

Hope this information will help you a lot in choosing a right way to pay your LIC premiums.

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69 Responses

  1. I paid my LIC premium from PayTm using my credit card without paying any extra charges. May be you should update the blog with PayTm option.

  2. Hi,

    The mode of payment selected was ECS but my bank is not debiting the monthly premium and now I pay through authorized premium collecting center. I don’t get an option in LIC website to pay online. Please advise the way to make my payment online.


    1. Sikha-You not found online option in LIC portal? You can pay the premium either through registering or without registration also. Just check once again. If the NACH mandate not happened for auto debit of premium from your bank, then request your agent or LIC branch for the same to initiate by submitting the proper documents.

  3. New govt scheme of 8% discount on online payment .. It is applicable for only Rupey card holder or we can get that benefit from Other visa card or master card,other all debit card???

  4. Hi Sir,

    I have taken a new LIC policy for my daughter in the month of September 2016.the premium is supposed to be paid quarterly. i have paid the 1st premium in branch.but now from the next premium which is suppose to be due in November, I want to pay it online in website.
    When I tried to register in LIC website I am getting a message “Premium can not be paid for this policy. Please check the policy details entered and try again”

    Please direct me on this.

  5. Hi Basavaraj,
    Am a registered user and for the past 4-5 years, i have been paying my lic premium by credit card , my recent payment made on 01 September went through well for the premium dated 08September mentioning success ( 500020) , received message from credit card vendor for successful payment, but did not receive the receipt from LIC to my mail account, i tried looking up on LIC website still no sign of payment made or receipt has shown up, it’s almost a day now, do i need to wait for another 2 days , Please advise.Thanks In advance.

    1. Hi Basavaraj,
      Am a registered user and for the past 4-5 years, i have been paying my lic premium by credit card , when I tried to make the Payment (35k) today it is showing 190 + 23 = 213 rupees as charges. Will there be similar charges if I want to pay using Credit card @ nearest LIC Office ?

        1. Basavaraj, Thanks for your reply.

          Do you mean to say, there will be NO EXTRA CHARGES for CREDIT CARD usage @ LIC Office ?

  6. does service tax around 14% will be collected if we pay directly at an LIC Branch, as they are collecting while paying online.

  7. How to pay my lic premium by means of my HDFC visa debit card nowadays there is no opition of visa debit card

  8. I pay my premium via ECS . But I want to change it to ordinary mode i.e. I want to pay the premium in cash in the LIC branch directly. Do I need to write a letter to the concerned LIC branch to make this change, If yes please give me the letter format.

  9. Hi, I would like to know, whether there are any additional charges in online payment?

    Thanks and Regards,

  10. Sir i am not getting online premium payment opt. via debit card its not showing by default. only opt is for net banking but i want debit card opt. kindly help me the way out of this.

    Premium can not be paid for this policy. Please check the policy details entered and try again.


      Premium can not be paid for this policy using Online Payment Facility.
      Please ensure that premium is due for the policy and try again.

  12. I am having two LIC Policies of total Rs 5235.oo monthly which are running 5th year. I want to discontinue my policies after 5 years and get my money back. Please educate me regarding the best way to get the maximum amount and how I can get it?

    Thank you in advance.


    Dr. Bhaskar Das

  13. I have paid of Rs.1311/- directly online without registration on 01/03/2016, but i had not received payment. Sir, kindly send a receipt of payment which was paid by me.

    1. Mamta-I am not authorized person from LIC to send you receipt. You have to contact LIC branch. Also, don’t publish your personal details on such public platforms. Hence, I deleted those details.

  14. Hi Basavaraj,

    I need premium receipts as i availed for ECS way.

    how do i get it? need to go LIC office.?

    do we have any online facility?

  15. Hi Basavaraj,

    I’m paying LIC premium via ECS payment option i.e., Monthly.

    I have 815 (plan) – 18 (term) – The monthly premium as mentioned in Bond is Rs. 2667

    Since, i’m paying via ECS every month, premium deducted is Rs. 2749 !

    Can you please clarify why more amount is getting deducted?

    Also, how can i make the payment in more efficient way (i.e., without paying extra amount)

  16. Sir can I pay my premium at your branch thru credit card? Are there any charges? Also how do I know what bonus has been declared for my jeevan saral policy which I brought in Dec 2013.

    1. Neera-I am not offering any such services. Please pay in branch or through online portal. Yes, you can pay premium using credit card. Jeevan Saral not offers any yearly bonus but only LA at policy closure.

  17. Nicely Explained ,I hope this will be understand every one ,but one correction in online Payment through LIC website,
    It is not completely free , if u pay through IDBI gate way (Credit Cards/Debit Cards) you need to pay Convenience Fee(Depends on the Premium) + Service Tax , or if u pay through Bill disk Gate Way(Internet Banking/Amex Cards*/RuPay Cards) it is free.


  19. Dear sir

    I am working as LIC AGENT – Tamilnadu
    I am not empowered agent I wish to give better service to clients and I want to collect premium in my clients and to pay the same through online via net bank facility if possible please inform the procedure with necessary link.

    with warm regards
    DINDIGUL 624 001
    Mob: 999 4458868 & 98427 60356

  20. Nice article sir. I think the pictorial representation is simply awesome. No need to go further. The picture speaks itself. Thanks a lot for such great post …

  21. Simply visit LIC website, Register and pay via Billdesk payment gateway – I think is the simplest way to pay online premium. And for offline nothing to worry, your LIC agent will come and collect the premium 🙂 Very nice presentation Basu.

    1. Santanu-I agree that online payment is simple. But in India net banking penetration is too low. No need to worry about offline and depend on LIC agents? Please check your facts for how many agents work as full time and how many drop out from this industry as soon as possible. So it is wrong if we believe on these agents for offline payment. It is best to take care on our own.

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