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The concession in late fee will help those who could not pay premiums due to job loss during the Covid-19 pandemic
In a bid to revive individual lapsed policies, the Life Insurance Corporation (LIC) of India is offering concession in late fees to its customers. India’s largest life insurer is running a special campaign from August 23 to October 22 to revive the lapsed policies.
“Under this Special Revival Campaign, policies of specific eligible plans can be revived, within 5 years from the date of the First Unpaid Premium subject to certain terms and conditions,” India’s largest insurer said in a statement.
Revival of policies lapsed during Covid-19 crisis
Owing to the Covid-19 pandemic, the economy went into a downward spiral and many people also lost their jobs and means of livelihood. Many people also lost out on their insurance covers as well. LIC said that this special campaign has been launched to aid those policyholders whose policies lapsed due to the inability to pay the premiums owing to inevitable circumstances.
“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 added.
This is the first time that LIC has extended the campaign to health insurance and microinsurance policies along with the conventional insurance policies, according to a report in The Times of India.
Late fee concession brackets
Lapsed policies with a total receivable premium of up to Rs 1 lakh will get a concession of 20% in late fees, with the concession amount capped at Rs 2,000. Policies with receivable premium in the bracket of Rs 1-3 lakh will get a 25% concession up to Rs 2,500. If the total receivable premium is above Rs 3 lakh, a concession of 30%, up to Rs 3,000, will be given.