Why 2 premiums are collected by LIC to start a policy in monthly mode?
All distribution of subsidies like LPG, dividends, interest, salary, pension etc. and also collection of payments pertaining to telephone, electricity, water, loans, LIC premium collection etc are now processed by National Automated Clearing House(NACH). It takes nearly 30 to 45 days to setup a new debit link due to the enormous volume of payments to be processed. By that time policyholder needs to pay the second month premium. In order to avoid policy lapsation due to this technical difficulty, LIC collects 1 month premium in advance. Say for example if we take policy in April, LIC will collect premium for both April and May months. Auto debit of premiums from bank will happen only from June. Hope it helps.

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