Home / Money / Personal Finance /  LIC to allow policyholders to revive their lapsed policies with late fees concessions
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The Life Insurance Corporation of India (LIC) has announced a unique opportunity for its policyholders who wish to revive their lapsed policies. The insurer on Friday announced a distinctive special revival campaign for its customers to revive individual lapsed LIC policies. The campaign will begin on August 17 and will be available till October 21, 2022. The campaign is a unique drive as it extends to all non-ULIP Policies with a very attractive concession in late fees.

The campaign is introduced to help those policyholders who were not able to pay premiums due to unavoidable circumstances and their policy lapsed.

"Life Insurance cover is a risk management, for contingent, unexpected loss of life. This campaign gives a rare opportunity for LIC’s valued policy holders to revive their lapsed policies and continue the benefit of insurance to protect the financial interests of their family," LIC said in its statement.

Under the campaign, except for ULIP policies, all policies can be revived within 5 years from the date of the First Unpaid Premium subject to policy conditions.

As per the regulatory filing, a total receivable premium of up to 1 lakh will have a 25% late fee concession with a maximum concession allowed to the tune of 2,500. Further, for receivable premiums between 1,00,001 to 3 lakh, the late fee concession is same as 25% but with a maximum concession of 3,000.

For total receivable premium between 3,00,001 and above, the late fee concession is up to 30% with a maximum concession allowed up to 3,500.

"There is a 100% waiver of late fee for Micro Insurance Policies to facilitate affordable restoration of risk cover," the statement said. Also, there are no concessions in medical requirements.

According to LIC, policies except for ULIP plans which are in lapsed condition during the premium paying term and not completed policy term as on the date of revival are eligible to be revived in this campaign.

On Friday, LIC announced its financial performance for the quarter ending June 30, 2022 (Q1FY23).

In Q1FY23, LIC sold 36.81 lakh policies in the individual segment registering a rise of 59.56% compared to 23.07 lakh policies sold in Q1FY22.

During the first quarter of FY23, LIC registered a breath-taking 23,127.21% rise in standalone net profit to 682.89 crore for the quarter ending June 30, 2022 (Q1FY23) compared to a profit of 2.94 crore in the same quarter last year. Further, its total premium income climbed 20.35% to 98,351.76 crore in Q1FY23 compared to 81,721.41 crore during Q1 of last fiscal.

On year-on-year, LIC's overall business witnessed a strong momentum with marketing activity picking up pace.

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