LIC Offers Chance to Revive Lapsed Insurance Policies; Know How to Do it
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The Life Insurance Corporation of India, or LIC, has for the second time brought in a significant grant to its policyholders to battle with the pandemic and the financial and health risks associated with it. The state-run insurance giant is offering its policyholders to revive their lapsed policies in the current financial year, the company has said in a press release.
LIC said that it will run a special policy revival campaign from February 7 to March 25 for individual lapsed policies. 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.
“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. There are no concessions on medical requirements. Eligible Health and Micro Insurance plans also qualify for the concessions in late fee,” LIC said in the press release.
“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 certain terms and conditions,” the IPO-bound insurer added in its statement.
“While the current Covid-19 pandemic scenario has emphasised the need for mortality protection, this campaign is a good opportunity for LIC’s policyholders to revive their policies, restore life cover and ensure financial security for their family,” the press release further said.
“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.
There are no concessions on medical requirements. Eligible health and micro insurance plans also qualify for the concession in late fee, the release said.
For conventional and health policies with a total receivable premium of up to Rs one lakh, the insurer is offering a 20 per cent concession in late fee, with a maximum limit of Rs 2,000. Similarly, for a premium amount of above Rs 3 lakh, concession offered is 30 per cent, with a cap of Rs 3,000.
The LIC also released a Twitter statement regarding this.
Here are the Concessions Offered in Late Fee for Eligible Policies:
a. Up to Rs 1,00,000 — Concession in Late Fee: 20 per cent; Maximum Concession: Rs 20,00
b. From Rs 100,001 to Rs 3,00,000 — Concession in Late Fee: 25 per cent; Maximum Concession: Rs 2,500
c. From Rs 3,00,001 and above — Concession in Late Fee: 30 per cent; Maximum Concession: Rs 3,000
d. For Micro Insurance Plans, the concession will be 100 per cent, which will be granted in full
However, high risk plans such as term assurance and multiple risk policies are out of this range.
This news comes ahead of the much-anticipated LIC IPO, which is set to kick in soon.
(With PTI inputs)
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