LIC Policy Holders Can Now Reactivate Expired Policies: Find Out How?
Good news for the people having lapsed LIC policies since Life Insurance Corporation of India (LIC) has launched a special two-month campaign to revive individual lapsed policies.
Special Revival Campaign
On August 23, the state-run insurer announced the programme – ‘Special Revival Campaign’.
This special campaign will continue till October 22, 2021, according to the sources.
Apart from this, LIC would also be offering a concession on late fees as an incentive for policyholders to revive their insurance policies.
How Does the Revival Campaign Work?
According to LIC, the policies of specific eligible plans can be revived within five years from the date of the first unpaid premium subject to certain terms and conditions.
Further, LIC said in a press release that the policies which are in a lapsed condition during the premium paying term and not completed policy term are eligible to be revived in this campaign, it added.
It is noteworthy here that the term assurance and high-risk plans have been excluded from this benefit.
LIC added, “In view of the prevailing circumstances, concessions are being offered in late fee for other than Term Assurance and High-Risk Plans, depending on the total premiums paid,”.
The national insurer noted that “There are no concessions on medical requirements. Eligible Health and Micro Insurance plans also qualify for the concession in late fee,”.
How Much Concession Will Be Offered?
LIC said that for a total receivable premium of up to Rs 1 lakh, a 20 percent concession in late fees would be offered.
Although, the concession amount cannot exceed Rs 2,000.
In case of the total receivable premium range between Rs 1-3 lakh, a 25 percent concession in late fees not exceeding Rs 2,500 would be offered.
If the total receivable premium being above Rs 3 lakh, a 30 percent concession in late fees is permitted.
But this concession amount cannot exceed Rs 3,000.
While talking about the benefits from this campaign, LIC said, “the campaign is launched for the benefit of those policyholders whose policies lapsed as they were not able to pay premiums on time due to unavoidable circumstances. It always makes better sense to revive an old policy to restore insurance cover,”.