On August 23, 2021, the state run insurance company announced a special two-month campaign for reviving lapse policies of individuals. The programme called 'Special Revival Campaign' will run until October 22, 2021. There will be an incentive for policyholders who intend on reviving their policies as they will be offered a concession on late fee amount.
How would the revival plan work?
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. The release further added that policies in lapsed condition and which the premium payment term has not ended are eligible to be revived as part of the campaign. . However, term assurance as well as 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 plans also qualify for the concession in 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 shall not be over 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 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."The campaign is launched for the benefit of those policyholders whose policies lapsed as they were not able to pay premiums on time due to unavoidable circumstances. It always makes better sense to revive an old policy to restore insurance cover," LIC said.