The Life Insurance Corporation of India (LIC) has launched a new campaign for policyholders to revive their lapsed insurance policies. Under the new campaign, policyholders will be able to revive those plans that have lapsed during their premium paying period.

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"While the current Covid-19 pandemic scenario has emphasised the need for mortality protection, this campaign is a good opportunity for LIC's policyholders to revive their policies, restore life cover and ensure financial security for their family," the company said in its release.

Also read: Exclusive: Term policy premiums likely to rise by 15-25% across life insurance companies

Policyholders have time between February 7 to March 25, 2022, to revive their lapsed policies.

Under the campaign policies, certain plans are eligible to be revived up to a period of five years from the date of the first unpaid premium. However, high-risk plans like term assurance and multiple risk policies and completed policy terms are not eligible.

Also read: Here’s how to participate in LIC's mega IPO

For reviving policies, policyholders will have to pay the accumulated premiums along with the associated late fees. But LIC is also offering concessions for the late fee depending on the total premiums paid.

For conventional and health policies, LIC has offered a 20 percent concession in late fee, up to Rs 2,000 for policies with a total receivable premium of up to Rs 1 lakh. For policies which have a premium amount of above Rs 3 lakh, a 30 percent concession is being offered with a limit of Rs 3,000.

Also read: Countdown to LIC listing: Embedded value seen at Rs 5.40 lakh crore, draft prospectus likely next week

LIC, the country’s largest insurer, is on track to become the country’s largest, and one of the world’s largest public issues, as the government looks to divest its stake in the corporation.

Finance Minister Nirmala Sitharaman had stated during the Budget presentation that the IPO would happen within this fiscal and reports indicate that the LIC may be filing its draft red herring prospectus sometime soon.

Also read: LIC IPO: A SWOT (strength, weakness, opportunity, threat) analysis

(Edited by : Shoma Bhattacharjee)

First Published:Feb 7, 2022 6:20 PM IST