"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 issued.
ECS mode, according to the insurance sector regulator, offers great convenience in certain ways to the policyholder as the amount of the premium itself get deducted from the bank account on the specified due date.
However, the degree of freedom enjoyed with other modes like cheque or cash payments is not available under the ECS process owing to various inherent reasons, added the media report.
Further, it has asked insurance companies to circulate the information to the policyholders of all the procedures and timelines to be followed to in connection with the ECS mandate, up-front at the time of opting for this mode of payment.
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