LIC has now allowed policyholders to revive their policies that have lapsed more than two years. "LIC brings an excellent opportunity for all its policyholders to revive their lapsed policies. The policies which have lapsed for more than two years and were not allowed to be revived earlier can also be revived now," LIC said in a tweet.
After the Irdai Product Regulation 2013, which came into effect from January 1, 2014, revival period was restricted to two consecutive years from the date of first unpaid premium, during which the policyholder is entitled to revive policy which was discontinued due to non-payment of premium. So earlier all policies taken after January 1, 2014 could not be revived if they remained in lapsed condition for a period exceeding two years.
With a view to extend the benefit of continued life cover, LIC approached Irdai and extended the benefit of longer revival period to even those policyholders who bought policies post January 1, 2014, LIC said. Now, even those LIC policyholders who bought their policies post January 1, 2014 can revive their non-linked policies within 5 years and unit linked policies within 3 years of first unpaid premium, it added.
LIC brings an excellent opportunity for all its policyholders to revive their lapsed policies. The policies which have lapsed for more than two years and were not allowed to be revived earlier can also be revived now.
LIC managing director Vipin Anand said: "Unfortunately, there are circumstances when one is unable to continue paying premiums and the policy lapses. It always makes a better sense to revive an old policy rather than discontinuing it and buying a new policy to restore insurance cover."