Summary of this article
LIC says the initiative is meant to support policyholders who may have struggled to pay premiums on time due to adverse circumstances. “Policies must be kept in force to get full insurance benefits,” the corporation noted in its announcement, underlining that revival is often the better option for long-term protection and financial security.
The Life Insurance Corporation of India (LIC) recently announced a special campaign that will help policyholders revive their lapsed insurance policies. The drive, to be carried out nationwide, began on August 18 and will run until October 17, 2025. It offers concessions on late fees to make it easier for customers to restore their coverage.
As per the state-owned insurer, the revival drive applies to all individual, non-linked insurance plans that are eligible for reinstatement under policy terms. Such policies can be revived within five years from the date of the first unpaid premium, provided they are still within the premium-paying term and have not yet completed the overall policy term.
What is LIC offering upon the revival of lapsed policies?
Under the scheme, LIC is offering up to a 30 per cent concession on late fees, but with limits depending on the premium amount.
For policies with a total receivable premium up to Rs 1 lakh, the concession is capped at Rs 3,000
For premiums between Rs 1,00,001 and Rs 3,00,000, the maximum concession goes up to Rs 4,000
For policies where the receivable premium exceeds Rs 3 lakh, the concession remains at 30 per cent but is limited to Rs 5,000
In the case of Micro Insurance Plans, policyholders will get a complete waiver, with the late fee fully waived off.
There will, however, be no relaxation on medical or health requirements wherever applicable, the notification added.
The state-run insurer has said that the initiative is meant to support policyholders who may have struggled to pay premiums on time due to adverse circumstances. "Policies must be kept in force to get full insurance benefits," the corporation noted in its announcement, noting that revival is often the better option for long-term protection and financial security.
Why do policies lapse in the first place?
When you buy a health insurance policy, the basic requirement to continue coverage is to pay a premium amount at regular intervals. In case you fail to pay the amount within the due date or even after the policy's grace period has expired, the plan lapses, and the benefits are terminated.
With this campaign, LIC is trying to ensure that families do not lose out on the safety net of insurance simply because of a missed premium payment.
