I bought an insurance policy from Reliance Life two years ago. Earlier, I used to make premium payments through outstation cheques, but now the company is demanding local cheques. Is the company justified in its demand?
Normally, all insurance companies insist on local cheques for payment of premium because the credit for premium is available to them within two or three days. An outstation cheque not only takes longer to clear, but also involves some collection charges. Acceptance of outstation cheques earlier could be a matter of oversight by the company. There are plenty of options for the payment of premium these days. For your convenience, you may exercise the option to pay online or through credit card.
Normally, all insurance companies insist on local cheques for payment of premium because the credit for premium is available to them within two or three days. An outstation cheque not only takes longer to clear, but also involves some collection charges. Acceptance of outstation cheques earlier could be a matter of oversight by the company. There are plenty of options for the payment of premium these days. For your convenience, you may exercise the option to pay online or through credit card.
