1 min read.Updated: 03 Dec 2019, 11:58 AM ISTAgencies
Credit card charges will also be waived on new premium, repayment of loan and interest on loans against the policies, LIC said
LIC had earlier allowed policyholders to revive their policies that have lapsed more than two years
To promote digital transactions, Life Insurance Corporation or LIC has waived off the convenience fee on all payments, including payment through credit cards, to the national insurer, effective December 1.
LIC said any credit-card originated payments towards renewal premium, new premium, or repayment of loan and interest on loans against the policies will not attract any additional charges or convenience fee, from December 1.
"This facility of free transactions using credit cards shall be applicable to and implemented across all collecting systems - card less payment and card dip/ swipe on point of sale machines," LIC said in a statement on Monday.
LIC had earlier 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.