LIC provides another opportunity to revive lapsed policies

08-Jan-2021

To encourage individuals to continue their risk cover amid the coronavirus pandemic, LIC on January 7 launched a campaign where lapsed policies can be revived. The insurance behemoth has launched a Special Revival Campaign starting from January 7 till March 6 for its customers to revive their lapsed individual policies subject to certain conditions.

It has also authorised its 1,526 satellite offices to revive policies where special medical tests are not required. "Under this Special Revival Campaign, policies of specific eligible plans can be revived within five years from the date of the first unpaid premium subject to terms and conditions," LIC said in a statement.

Certain concession in health requirements is also being offered subject to eligibility, it said, adding that most policies can be revived only on the basis of a declaration of good health and a COVID-19 questionnaire to be submitted by the proposer/ life assured. LIC had launched a similar campaign from August 10 till October 9, 2020 for its customers to revive their lapsed individual policies.

Policyholders will get 20 percent late fee concession or Rs 2,000 for revival while 25 percent concession for annual premiums between Rs 1 lakh and Rs 3 lakh, it said. Policies in lapsed condition during the premium paying term and not completed policy term as on the date of revival are eligible to be revived in this campaign, the statement said.

The campaign will benefit those policyholders who could not pay premiums due to unavoidable circumstances and their policies lapsed. It always makes better sense to revive an old policy to restore insurance cover and LIC values its policyholders and their desire to continue their life insurance cover, the statement said.

This campaign is a good opportunity for LIC’s policyholders to revive their policies and restore life cover to ensure financial security for their family, it added. LIC currently services almost 30 crore policies across the nation.

Source : Money Control