The Life Insurance Corporation of India (LIC) has launched a special campaign to revive lapsed individual life insurance policies from 1 January to 2 March.
The campaign has been launched for the benefit of policyholders who were unable to pay premiums on time due to unfavourable circumstances.
Under the special revival campaign, policies can be revived within five years from the date of the first unpaid premium, subject to the policy’s terms and conditions.
Policies that are in a lapsed condition during the premium-paying term and have not completed the policy term are eligible for revival under the campaign.
Policies must be kept in force to avail full insurance benefits.
LIC said it is advisable to revive an old policy to restore insurance cover, adding that the campaign provides an opportunity for policyholders to ensure financial security for their family members.
The life insurer is also offering concessions on late fees for all non-linked insurance plans, up to 30% of the late fee, subject to a maximum of INR5,000, if eligible for revival under the scheme.
LIC said that if the total receivable premium is up to INR100,000, a concession of up to INR3,000 will be allowed. In cases where the total receivable premium is between INR1,00,001 and INR300,000, customers will be eligible for a concession of up to INR4,000. For premiums of INR3,00,001 and above, a concession of up to INR5,000 will be allowed.
In the case of micro insurance plans, a 100% concession on the late fee will be provided, reported Business Standard.