LIC Launches Special Campaign To Revive Lapsed Policies With Fee Concessions
Life Insurance Corporation of India has announced a special revival campaign running from January 1 to March 2, 2026, to help policyholders restore lapsed individual insurance policies. The initiative offers up to 30% concession on late fees for non-linked insurance plans with a maximum limit of ₹5,000, while providing 100% waiver of late fees for micro insurance policies. The campaign targets policies that are lapsed during their premium-paying term but have not completed their policy term, with no concessions on medical requirements.
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Life Insurance Corporation of India has officially announced a comprehensive special revival campaign designed to help policyholders restore their lapsed individual insurance policies. The pan-India initiative, running from January 1 to March 2, 2026, offers substantial financial concessions to encourage policy revival and restore insurance coverage for affected individuals.
Campaign Structure and Financial Benefits
The revival campaign provides differentiated concessions based on policy types, offering significant cost savings for eligible policyholders:
| Policy Type: | Late Fee Concession | Maximum Limit |
|---|---|---|
| Non-linked Insurance Plans: | Up to 30% | ₹5,000 |
| Micro Insurance Plans: | 100% waiver | No specified limit |
The concession amount for non-linked plans depends on the total receivable premium, ensuring proportional relief based on individual policy circumstances. This tiered approach allows LIC to provide targeted support while maintaining operational sustainability, with the 100% waiver for micro insurance policies specifically designed to facilitate affordable restoration of risk cover.
Eligibility Criteria and Revival Requirements
Policies eligible for revival under this campaign must meet specific conditions to qualify for the concessions. The initiative applies to policies that are in a lapsed condition during their premium-paying term but have not completed their overall policy term. Importantly, policies can be revived within five years from the date of the first unpaid premium, provided they satisfy all existing policy terms and conditions.
LIC has clarified that while financial concessions are available on late fees, there will be no relaxation on medical or health-related requirements. This ensures that the revival process maintains the necessary risk assessment standards while providing financial relief to eligible policyholders.
Strategic Impact and Policyholder Benefits
The revival campaign represents LIC's proactive approach to supporting policyholders who may have missed premium payments due to unfavorable circumstances. The insurance behemoth emphasized that the campaign is launched specifically for the benefit of policyholders who were not able to pay premiums on time due to any unfavorable circumstances. By restoring lapsed policies, individuals can reinstate their insurance protection and continue providing financial coverage for their families.
LIC highlighted the importance of maintaining active policies, stating that "policies must be kept in force to get full insurance benefits." The company reinforced its commitment to policyholders, noting that "LIC values its policyholders and their desire to stay protected for the well-being of their family members." The initiative underscores that it is always advisable to revive an old policy and restore insurance cover rather than allowing policies to lapse permanently.
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