LIC allowed revival of the lapsed policy over 2 years

LIC has provided an opportunity to the policy holders to revive the policies which have been lapsed more than 2 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, The policy holders were not able to revive the policy which has been lapsed for two consecutive years from the date of the first unpaid premium. That is why after 1 January 2014, all the policies were not able to get revived again if they had been lapsed more than 2 years.

To give the benefit of continued life cover to its customers, LUC has approched Irdai and has now extended the revival period for the policies bought after 1st January 2014. LIC said that now the polocy holders who had bougth the policies after 1st January 2014, will be able to revive their non linked policies within 5 years. The unit Linked policies can be revived within 3 years of the first upaid premium.

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.”