LIC launches campaign to revive lapsed policies: Check details
A policy lapse occurs when a policyholder is unable to avail the benefits and cover of the policy due to non-payment of installments/ premiums.
The Life Insurance Corporation of India (LIC) has announced a special campaign to revive lapsed policies that were closed before maturity at a discounted premium from September 1 on the occasion of the company's 67th anniversary.
Taking to X (formerly Twitter), the insurance company said it is pleased to announce its remarkable 67th anniversary, symbolising decades of trust, integrity and excellence in the Insurance industry. A total of 27.74 crore policies have being serviced by LIC as on March 31, 2023, the statement read.
During the campaign, LIC agents and employees will reach out to the policyholders of lapsed policies with the terms of revival.
"We express our gratitude to policyholders, shareholders and employees for their unwavering support and commitment throughout the years. LIC's journey has been nothing short of extraordinary — we owe our success to the trust and confidence reposed in us by our loyal stakeholders," said LIC chairperson Siddhartha Mohanty.
What is policy lapse?
A policy lapse occurs when a policyholder is unable to avail of the benefits and cover of the policy due to non-payment of instalments/ premiums within the designated time duration.
Policyholders must ensure to pay the premiums within the due date. They are allowed a grace period between 15 and 30 days. It is only when individuals fail to pay premiums even during the grace period that the policy lapses.
How to revive a lapsed LIC policy?
- Policyholders can revive their policies with the insurer by paying the late payment interest.
- A policyholder can revive their lapsed policy by paying a renewal fee along with a late fee and additional interests/penalties on the due premiums as per the plan conditions.
- The policyholders can contact the agents or visit the branch for the process.
The insurance company had in February also launched a similar revival campaign according to which policyholders who bought their policies post-January 1, 2014, could revive their non-linked policies within five years and unit-linked policies within three years of the first unpaid premium.
LIC had offered a late concession of 25% on the premium amount of ₹3 lakh. For the premium amount of over ₹3 lakh, the late fee concession was slated as 30%.
With such campaigns, LIC seeks to encourage its policyholders to reinstate their old policies and enjoy all the benefits that come with them. Life insurance cover is a risk management, for contingent, unexpected loss of life, it said, adding, this campaign gives an opportunity for LIC's policy holders to revive their lapsed policies and continue the benefit of insurance to protect the financial interests of their family.