Live
- Cyber Crimes Surge by 18% in 2024: Director Shikha Goel Reports
- BGT: We are seeing a master at work; I take my hat off to him, says Abbott on Bumrah
- Niranjan Reddy Slams Jupally Krishna Rao and Government Over Irrigation Incompetence
- Gardner reflects on Australia's dominant year after ODI series sweep over NZ
- Pushpa Producer Naveen Yerneni Donates Rs. 50 Lakhs to Family of Victim in Sandhya Theater Incident
- NC MP holds anti-reservation protest outside J&K CM’s residence
- Inflation burden eases for farm and rural labourers
- Delhi BJP releases 'chargesheet' against Kejriwal, AAP govt
- The First 40 Days: Sonnalli Seygall’s Thoughts on Traditional Postpartum Care
- CM Nitish Kumar embarks on Pragati Yatra from West Champaran, begins development drive in Bihar
LIC allows revival of lapsed policy of over two years
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.
NEW DELHI: State-owned Life Insurance Corporation (LIC) on Monday permitted its policyholders to revive their lapsed policies of over 2 years, a move that will help improve persistency ratio.
The policies that have lapsed for more than two years and were not allowed to be revived earlier can also be revived now, LIC said in a statement.
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, it said.
Earlier, all policies have 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 extending 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 managing director Vipin Anand said unfortunately, there are circumstances when one is unable to continue paying premiums and the policy lapses and it always makes a better sense to revive an old policy rather than discontinuing it and buying a new policy to restore insurance cover.
"Buying life insurance is one of the most prudent decisions a person takes in life we value each of our policyholders and value their desire to continue their life insurance cover with us," he said.
This is a unique opportunity for LIC's policyholders to revive the policies that could not be revived in the past and restore life cover to ensure the financial security, he added.
The persistency ratio broadly measures the quantum of the customer retention by the life insurance companies, while determining the percentage of policyholders paying renewal premiums at the end of one year, or more years depending on the tenure of the policy.
