The Life Insurance Corporation (LIC) has launched a special revival campaign to help policyholders revive their lapsed policy. The state insurer has announced that it is also an opportunity for the policyholders to revive their lapsed policies with concession in late fee.
The scheme will run between August 17 to October 21, 2022.
There are three brackets under which policy holders can fall. If the total receivable premium is up to ₹1,00,000 then the late fee concession would be up to 25 per cent, but subject to a maximum concession of ₹2,500.
In case the total receivable premium ranges between ₹one lakh and ₹3 lakh, the late fee concession would again be 25 percent, but subject to a maximum concession of ₹3,000.
Also, when the total receivable premium is ₹3 lakh and above, the late fee concession would be 30 percent but subject to the maximum limit of ₹3,500, according to the details shared by the state insurer in a press statement.
However, policy holders must be aware of the fact that their insurance policies can be revived within a span of five years from the date of first unpaid premium as per plan conditions.
“This special revival campaign is a unique drive as it extends to all non-ULIP Policies with very attractive concession in late fee. Under this special revival campaign except ULIP policies, all policies can be revived within five years from date of the first unpaid premium subject to policy conditions,” stated LIC in a statement.
There are certain exceptions to the scheme nevertheless. This does not apply to the ULIP plans. Also, there are no concessions in medical requirements.
The insurer also clarifies that the campaign is meant to benefit those policy holders who were not able to pay premiums due to unavoidable circumstances and their policies lapsed.
The scheme, meanwhile, offers 100 percent waiver of late fee for micro insurance policies to facilitate affordable restoration of risk cover.
“This campaign gives a rare opportunity for LIC’s valued policy holders to revive their lapsed policies and continue the benefit of insurance to protect the financial interests of their family,” reads the LIC statement.