Insurance big LIC has introduced a particular window to revive previous insurance policies with concession in late charges. These insurance policies are those which have lapsed because of unpaid premiums.
Policies which can be within the premium paying time period and are inside 5 years of the final unpaid premium may be revived. The newest revival window is open till March 24, 2023.
LIC frequently allowed such home windows open as just lately as March 2022, August 2021 and November 2019. Policyholders ought to utilise such alternatives, particularly now, contemplating the heightened want for a danger cowl.
Reviving an present coverage with charges and phrases of earlier intervals may be useful, in comparison with investing in a brand new danger cowl whose prices would have elevated publish the pandemic. The supply is just not relevant for high-risk covers similar to time period insurance policy and a number of danger insurance policies.
Policy revival concession particulars
For a complete receivable premium of as much as ₹1 lakh (cumulative unpaid premiums), a late payment concession of 25 per cent is relevant as much as a most concession of ₹2,500 on the late charges. Similarly, for premium sum of ₹1,00,001 to ₹3 lakhs, 25 per cent late payment concession as much as a most of ₹3,000. For premiums above ₹3,00,001 — 30 per cent late payment concession is allowed as much as a most of ₹3,500.
Separately, late payment on the flat fee of simply ₹5 (excluding GST) shall be levied to all of the eligible NACH and Bill Pay registered insurance policies revived on this marketing campaign, based on LIC communique to policyholders.
Policies sometimes carry a 15-day grace interval for month-to-month funds and one month for different cost frequencies similar to quarterly, half-yearly and annual. After the top of grace interval, the coverage lapses.
The revival of such a coverage is a recent contract, with the insurer having the proper to impose recent phrases and situations. According to LIC web site, a lapsed coverage needs to be revived by cost of the collected premiums with curiosity in addition to present process medical exams as required.
Outside of the coverage revival marketing campaign at present underway, revival schemes can be found for making a return to the insured fold.
In a particular revival scheme, the date of graduation is shifted by a most of two years for insurance policies which can be lower than six months by way of non-payment. This may be utilised solely as soon as within the coverage life, and phrases would be the ordinary phrases and situations.
Under sure situations, the revival quantity may be serviced in installments as properly or a mortgage is supplied based mostly on the coverage being revived itself to cowl for the arrears. To revive your lapsed LIC coverage, policyholders can contact their nearest department or agent.