LIC allows Policyholders to Reactivate their Lapsed Insurance

The Life Insurance Corporation of India (LIC), which is planning an IPO, has initiated a push to revive individual lapsed policies.

Policies that have expired during the premium-paying term but have not yet completed the policy term are eligible to be revived as part of this campaign, which will run from February 7 to March 25, 2022, according to a press statement released on Saturday.

“While the current Covid-19 pandemic scenario has highlighted the importance of mortality protection,” the state-run insurer said in a statement. “This campaign is a good opportunity for LIC’s policyholders to revive their policies, restore life cover, and ensure financial security for their families.”

It stated that late fee reductions are available for non-term assurance and high-risk policies, depending on the total premiums paid.

There are no exceptions when it comes to medical needs. According to the statement, eligible health and micro insurance policies are also eligible for the late fee reduction.

The insurer is offering a 20% discount on late fees for conventional and health plans with a total recoverable premium of up to Rs one lakh, up to a maximum of Rs 2,000. Similarly, for premiums above Rs 3 lakh, a 30% discount is granted, with a ceiling of Rs 3,000.

For micro-insurance plans, the insurer is granting a complete waiver of late fees.

According to the release, policies of certain qualified plans can be revived under the campaign within five years of the initial unpaid premium, subject to particular criteria and limitations.