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The Life Insurance Corporation of India (LIC) has launched a special two-month campaign to revive individual lapsed policies, the state-run insurer announced on August 23.
The program - ’Special Revival Campaign’ - has been launched from August 23 and will continue till October 22, 2021, it said. As part of the campaign, LIC would be offering a concession on late fees as an incentive for policyholders to revive their insurance policies.
Here’s how the revival campaign works:
The 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, LIC said in a press release.
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. However, term assurance and high-risk plans have been excluded.
"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," LIC said.
"There are no concessions on medical requirements. Eligible Health and Micro Insurance plan also qualify for the concession in a late fee," it noted.
Concession to be offered on late fees:
For a total receivable premium of up to Rs 1 lakh, a 20 percent concession in late fees would be offered. However, the concession amount cannot exceed Rs 2,000.
For the total receivable premium from Rs 1-3 lakh, a 25 percent concession in late fees not exceeding Rs 2,500 would be offered.
In the case of the total receivable premium being above Rs 3 lakh, a 30 percent concession in late fees is permitted, but the concession amount cannot exceed Rs 3,000.TOTAL RECEIVABLE PREMIUM | PERCENTAGE ALLOWED IN LATE FEE CONCESSION | MAXIMUM CONCESSION ALLOWED |
Up to Rs.1,00,000 | 20% | Rs 2000/- |
From 1,00,001 to Rs.3,00,000 | 25% | Rs 2,500/- |
From 3,00,001 and above | 30% | Rs 3000/- |
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