Life Insurance Corporation has launched a special plan on Sept 1 to revive the lapsed policy for the policyholders. The campaign will run for two months before ending on Oct 30 this year.
So, if your life insurance policy has lapsed in the past five years then you have a chance to revive it by availing a heavy discount on the late fee.
Those policyholders who are meant to pay up to ₹one lakh are entitled to receive a late fee concession of 30 percent subject to the maximum concession limit of ₹3,000.
The policyholders who are meant to pay a premium between ₹one lakh to ₹3 lakh can avail a late fee concession of 30 percent or ₹3,500 whichever is higher.
Likewise, the policyholders whose receivable premium is more than ₹3 lakh can avail a concession of 30 percent or ₹4,000, whichever is higher.
The insurer ran a similar campaign early this year in the month of February as well.
Why does the policy lapse?
When a policyholder happens to miss payment of premium, the insurance policy stands to lapse.
From time to time, insurers send reminders to their customers but upon sending repeated reminders — when they fail to receive a reply or the payment of premium, the insurance policy gets discontinued.
| Total premium | Late fee | Maximum concession (Rs) |
| Upto ₹one lakh | 30% | 3,000 |
| 1-3 lakh | 30% | 3,500 |
| Above ₹3 lakh | 30% | 4,000 |
What is so different about this special campaign?
Usually, insurance companies offer a window of two years to revive a lapsed policy. But LIC is offering a window of five years. This means even if someone’s policy lapsed in the past five years for the non-payment of premium, the policy can be revived by clearing the dues along with applicable late fee.
It is vital to note that the policies can be revived within five years from the date of first unpaid premium as per plan conditions. The policies that lapsed longer than five years ago cannot be revived under the ongoing campaign.
