Life Insurance Corporation of India (LIC) has launched a special campaign to revive lapsed insurance policies. This campaign, running from August 18th to September 17th, 2025, offers a waiver of up to 30% on late fees for non-linked policies and 100% waiver on micro insurance policies. This will provide an opportunity for millions of policyholders to restore their insurance coverage.
LIC policy: The country's largest insurance company, LIC, has initiated a special campaign to revive discontinued insurance policies. This scheme will be in effect from August 18th to September 17th, 2025. Under this, a discount of 30% on late fees, up to a maximum of ₹5000, will be given on non-linked policies, and a 100% discount will be given on micro insurance policies. LIC says that this step will provide relief to those customers who, for some reason, could not pay the premium on time and now want to restore their insurance cover.
Significant Discount on Late Fees
LIC stated in its announcement that late fee concessions will be offered to reactivate policies as part of this campaign. A discount of up to 30 percent on late fees will be available for non-linked, i.e., term insurance policies. This discount will be capped at a maximum of ₹5000. At the same time, the biggest relief has been given for micro insurance policies. The company has said that there will be a discount of up to 100 percent on late fees on micro insurance policies.
Who Will Benefit?
LIC has clarified that this campaign is for those policyholders whose policies had lapsed due to non-payment of premiums. If the term of a policy is not complete and it has become inactive due to lack of premium, it can be reactivated in this campaign. That is, the policyholder will get the opportunity to regain the same insurance cover.
Opportunity to Revive Policy Within Five Years
The company has stated that under this scheme, a lapsed policy can be restarted within five years from the date the premium was first not paid. To revive the policy, the customer will have to fulfill the necessary conditions and pay the outstanding premium.
Micro insurance policies are primarily for people in the low-income group. It becomes difficult for such people to deposit the premium on time due to financial difficulties. LIC has completely waived the late fees to give relief to these customers. Millions of small policyholders will directly benefit from this.
No Relaxation on Medical Requirements
However, LIC has also clarified that no relaxation will be given on medical or health-related requirements in this campaign. That is, if a medical examination is a condition for restarting a policy, it will have to be fulfilled. The company has said that medical rules are an important part of the insurance contract and no changes will be made to them.
Why is it Necessary to Keep the Policy Active?
LIC says that insurance protection is very important for every individual and family. Many times, due to adverse circumstances or economic pressure, people are unable to pay the premium on time and the policy lapses. But the risk to the family increases due to the policy lapsing. The purpose of this campaign is to give policyholders an opportunity to reactivate their old policies.
LIC has crores of customers across the country. Out of these, a large number of policies lapse due to non-payment of premium. Such customers are now getting a special opportunity of 30 days. In this period, they can restore their insurance protection.
When and How to Avail the Benefit?
This campaign is only for one month. Therefore, policyholders will have to apply to revive their lapsed policies before September 17th, 2025. For this, they will have to contact the nearest LIC branch or agent. After paying the premium and late fees, the policy will become active again.
