No extra charges for ECS payment: IRDA

India Infoline News Service | Mumbai |

IRDA has asked all life insurers to allow the policyholders facility to withdraw from the ECS mode at least 15 days prior to the due date of ECS submission

The Insurance Regulatory and Development Authority (IRDA) said that no life insurer will levy any additional charge towards cancellation of the electronic clearing service (ECS) mode / recover such additional charge from the benefits payable under the policy.

“As the ECS mode enables collection of premiums without any manual intervention of policyholders, the Life Insurers shall allow the policyholders facility to withdraw from the ECS mode at least fifteen days prior to the due date of ECS submission,” IRDA said in a circular on Wednesday.
“No Life Insurer shall levy any additional charges towards cancellation of the ECS mode / recover such additional charges from the benefits payable under the policy,” it added.

ECS is an electronic mode of payment / receipt for transactions that are periodic in nature.

To protect the interests of those policyholders who have opted for ECS mode for premium payment, IRDA has asked all life insurers to allow the policyholders facility to withdraw from the ECS mode at least fifteen days prior to the due date of ECS submission.

Further, it said that policyholders are to be made aware of all the procedures and timelines to be adhered to in connection with the ECS mandate, up-front at the time of opting for this mode of payment.
 

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