Life Insurance Corporation started a distinctive campaign to reopen expired insurance plans, allowing policyholders to restart their policies if they have been closed. The campaign will run till March 24, 2023. During this time, the giant in the insurance industry is also waiving late fines.
When a policy expires, policyholders are no longer able to take advantage of the protection and advantages it offers. When premiums are not paid by the due date, a policy becomes lapsed, and until the insured reinstates the procedure, the terms and conditions of the policy contract are null and void.
In general, insurers provide their customers with a two-year window to renew their policies. The coverage expires if premiums are not paid within the allotted grace period.
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In addition, any qualified National Automated Clearing House (NACH) and BILL Pay registered insurance revived as part of this campaign will receive a special offer late charge of Rs 5 (excluding GST).
How to revive lapsed policy?
LIC said, "the revival of the discontinued policy takes effect only after the same is approved by the corporation.”
As per LIC, a lapsed policy must be reinstated by paying the accrued premiums with interest in addition to meeting all necessary health standards.
The policyholder is required to pay a renewal fee, a late fee, and additional interest/penalties on the last two years' unpaid premiums as part of the revival. For a term insurance policy, the insurance company might even request a second medical exam.
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Customers can renew their policies during revival campaigns even after two years, subject to various limitations that differ from insurer to insurer and plan to plan.
