Special campaign for revival of lapsed policies of LIC of India

Life Insurance corporation of India (LIC), the state owned insurer celebrates Insurance week from 01st September to 7th of September every year. During this week LIC celebrates it foundation day (LIC was formed by merging over 245 companies on 01st September 1956), and do many activities related to employees, agents and its policy holders. Like other occasion in past, this year also LIC has launched a special campaign for revival of lapsed policies. This special campaign is from 01/09/2015 to 31/10/2015. During this campaign policy holders can revive their lapsed policies with concession in late fee and relaxation from some medical requirement.

This is a excellent opportunity for policy holders to revive their lapsed policy with concession in late fee and medical requirements. To know more contact your LIC agents or visit your nearest/servicing branch.

Lapsed policies under all type of plans are eligible except Micro insurance Plans. ULIP policies under Plan 802,803,804,811 which are discontinued as per policy conditions are eligible for revival.Revival of policies with FUP more than 5 years as on the date of revival will be done as per the rules. However such policies will be eligible for late fee concession.

Policies which are eligible for revival

Individual life insurance policies and Health insurance policies are eligible for revival under this campaign.

Individual Policies and Health Policies which are eligible for revival in this campaign
  1. Lapsed policies under all type of plans are eligible except Micro insurance Plans. ULIP policies under Plan 802,803,804,811 which are discontinued as per policy conditions are eligible for revival.
  2. Policies which are in lapsed condition for more than 6 months from FUP as on date of revival.
  3. Policies issued through all distribution channels.
  4. Policies which are in lapsed condition during the premium paying term and not completed policy term as on the date of revival.
  5. Policies under Plan 805 and 806 can be revived within 1 year from FUP.
  6. Revival of policies with FUP more than 5 years as on the date of revival will be done as per the rules. However such policies will be eligible for late fee concession.
  7. Policies under all types of Health plans are allowed.
  8. Policies which are in lapsed condition for more than 15 days for Monthly mode/ECS mode and One month for policies with other than monthly mode, but less than 2 years from FUP as on 01.09.2015 will be eligible.

LIC of India

Concession in late fee

The basis for allowing concession in late fee will be the total receivable premium under the
policy, as indicated below.

Total Receivable premium
amount under policy
% of concession
allowed in late fee
Maximum amount of
concession allowed
Upto Rs. 1,00,000 20% Rs. 1,500
From 1,00,001 to 3,00,000 25% Rs. 2,000
From 3,00,001 and above 30% Rs. 2,500
  1. Concession in late fee will be allowed only for policies where policyholder pays all arrears of premium with interest and revival requirements if any, up to the date of revival.
  2. Concession in late fee will be allowed for all types of revival including SB-cum-Revival, Loan–cum-Revival, and Instalment Revival.
  3. Concession in late fee will not be allowed to policies which were revived during the campaigns for revival of lapsed policy in 2013 and two campaigns in 2014, where concession in late fee was granted.
  4. Concession in late fee will also be allowed under policies where no evidence of health will be required i.e spot revival.
  5. Late fee concession will also be allowed where the arrears of premium for revival is in policy deposit and adjustment of the same is done during the campaign period after receipt of revival requirements.
  6. Under some plans like plan 91, 128, 174, 179 wherein the policyholder can pay one or two instalments of premium with interest instead of paying all arrears of premium, concession in late fee will not be allowed for such part payment. Needless to add that if all arrears of premiums with interest are paid during campaign period, then concession in late fee will be allowed as per rule.
  7. For plan 903 and 904 : Waiver of interest of 20% subject to maximum of Rs.1500 under LIC’s Jeevan Arogya plan 903 and 904.
  8. Medical Reports are to be submitted as per existing underwriting rules.
  9. No concession in waiting period.

 

Concession in Health Requirements or Evidence of health

The policy can be revived on submission of satisfactory declaration of good health (DGH) instead of regular health requirements, provided:

  1. Premium under the policy has been paid for atleast full 5 years as on date of revival and the Age of the life assured is 45 years or less as on the date of revival (nearer birthday) irrespective of sum assured.
  2. Age nearer birthday between 46-50yrs the total sum to be revived is allowed up to 2 lac.
  3. The Policy has been accepted/ revived at Ordinary rates or with extra other than on health/ build ground.
  4. In Declaration of good health (DGH) submitted by policyholder, there is no adverse information about health or personal history.

Exclusions for granting concession in health Requirements:

  1. Term assurance plans, high risk plans will be excluded.
  2. In addition to above plans, any policy issued with term rider or critical illness rider should also be excluded.
  3. For polices which will not satisfy the above criteria mentioned as at ‘3’ usual health requirements based on age and sum to be revived as on date of revival may be called.
  4. Policies which are not eligible for concession in health requirements, concession in late fee will be allowed as per rule.

This is a excellent opportunity for policy holders to revive their lapsed policy with concession in late fee and medical requirements. To know more contact your LIC agents or visit your nearest/servicing branch.

Curated from Special campaign for revival of lapsed policies of LIC of India 

 

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