The Life Insurance Corporation of India (LIC) has announced a special campaign for the revival of lapsed policies. The campaign was launched on August 23, 2021 and will end on October 22, 2021.
In a major relief for insurance policyholders, the Life Insurance Corporation of India (LIC) has announced a special campaign for the revival of lapsed policies. The campaign was launched on August 23, 2021 and will end on October 22, 2021.
In case, if your LIC policy has lapsed and wants to revive it by paying less late fee than what you pay under normal circumstances, here are the complete details for you.
Eligibility
Essentially, policies which are in lapsed condition after expiry of days of grace and within 5 years from first unpaid premium (FUP) date as on date of revival are eligible for revival under this special window. According to LIC, this campaign is meant for Non-ULIPs, and certain plans like Micro Insurance, Health Insurance, and discontinued ULIP, etc are not eligible for revival under this campaign.
To recall, the grace period for policies where the premium payment mode is monthly is 15 days from the due date. The grace period is 30 days for policies where the premium payment mode is quarterly, half-yearly or yearly.
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Concession in late fee
The LIC is offering 20% concession in late fee for total receivable premium up to Rs 1 lakh. However, the maximum allowed concession amount is – Rs 2,000.
The LIC is offering 25% concession in late fee for total receivable premium from Rs 1,00,001 to Rs 3,00,000. However, the maximum allowed concession amount is – Rs 2,500.
The LIC is offering 30% concession in late fee for total receivable premium from Rs 3,00,001 and above. However, the maximum allowed concession amount is – Rs 3,000.
Conditions for concessions in late fee
Concession in late fee will be allowed only for polices where policyholder pays all arrears of premium with interest and revival requirements if any, up to the date of revival. Besides, policyholders should note that the Goods and Services Tax (GST) on late fee will be charged as per rules.
In case of any shortfall of interest (late fee) after allowing the concession in late fee, provision to create x-charge as per present rule is allowed.
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Procedure to revive a lapsed policy
To revive a lapsed policy, policyholders can contact their LIC agents. One can also download the revival form from the official website of LIC. The form has to be filled and submitted to the LIC office along with the pending premium amount with late fee.
