LIC policyholders to get up to Rs 2,500 concession on revival of lapsed policies

In a major relief to LIC policyholders, the insurance major has offered an opportunity for its customers to revive their lapsed policies in a bid to encourage continuation of risk cover during the coronavirus pandemic period. LIC has launched a special revival campaign from August 10 till October 9 for its customers to revive their individual lapsed LIC policies. Under this special revival campaign, policyholders will get a maximum concession up to Rs 2,500 in late fee, depending on their total receivable premium.

"In view of the prevailing circumstances, no concessions are being offered in medical requirements and the same are limited to late fee only; under plans other than term assurance and other high risk plans," LIC notified on Sunday.

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Under this special revival campaign, LIC policyholders will get 20 per cent late fee concession for revival of plan with total receivable premium of up to Rs 1 lakh, while 25 per cent concession for amount between Rs 1 lakh and Rs 3 lakh. For premium above Rs 3 lakh, policyholders will get 30 per cent discount on late fee.

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Here are key highlights of LIC's special revival campaign:

• LIC said no concessions are being offered in medical requirements in "view of the prevailing circumstances". High risk plans such as term assurance, health insurance and multiple risk policies will not get concession under this campaign.
• Only policies of specific eligible plans can be revived within five years from date of the first unpaid premium, subject to certain terms and conditions.
• The scheme will benefit those policyholders who were not able to pay premiums due to unavoidable circumstances.
• LIC policyholders will get a maximum concession in the range of Rs 1,500 to Rs 2,500 in late fee, depending on their total receivable premium.
• LIC said that it makes sense to revive an old policy to restore insurance cover and the company values its policyholders and their desire to continue their life insurance cover.

By Chitranjan Kumar with PTI inputs