What is the ECS Full Form in Insurance?
The ECS full form in insurance is Electronic Clearing Service. This is a safe, convenient, and reliable payment option in insurance that automatically debits the premium valve from the bank account of the insured, before or on the due date, on a periodic basis. ECS ensures that the insured will never miss a premium payment.
Types of ECS:
The RBI in India adopts the ECS to offer a systematic clearance of insurance premiums. The insured can opt for the auto-debit option through their net banking account or their debit card. They will also require Aadhar OTP authentication to complete the process. There are two types of ECS, namely ECS debit and ECS credit. ECS debit is used to make payments to multiple bank accounts from a single account on a recurring basis. Whereas, ECS credit is used to receive money into a single account from multiple accounts on a recurring basis.
Benefits of adopting ECS in insurance:
With the adoption of the automatic premium clearance scheme, the users need not remember their premium due dates and also ensure that the policy doesn’t lapse due to non-payment of the premium. Being a secure, safe, and automated process, it ensures that the premium transactions of the insured in safe and secure.