LIC Update – Easily Start your closed policy: Micro insurance policies sold by LIC will be eligible for 100% discount on late fine. This will greatly benefit the smaller policies, as their risk cover will be restored without any additional charges.
If your life insurance policy (LIC policy) has also been closed due to any reason then there is no need to worry. Since LIC has started a special drive to revive similar discontinued policies, there is not much to worry about.
This campaign will start from 17th August till 21st October. The campaign allows revival of all discontinued policies that do not fall under the ULIP category. Paying the late penalty will enable you to resume any of your discontinued policies if they have been closed for several months.
LIC is giving exemption on late penalty under this campaign. Customers whose policy has been discontinued due to non-payment of premium can start a new policy under this campaign if they are unable to pay the premium.
LIC has issued a press release to its customers. In this release, LIC has issued a statement through its Twitter account. According to LIC, for customers whose policy has expired, the discontinued policy can be reinstated.
All except ULIP-linked insurance plans can be restarted by the country’s largest insurance company LIC. From the date of first unpaid premium, the policy can be revived within 5 years of discontinuance.
LIC will provide 100% rebate to customers for late penalty on micro insurance policies. Customers with smaller policies will benefit greatly from this as they will be able to continue to cover their risk without any charges. When a discontinued policy is introduced, please let us know about the late fee.
Late payment fee
- There is a 25% rebate on late fee for premium balance of Rs 1 lakh. The maximum exemption in this case has been fixed at Rs 2,500.
- If your premium is outstanding between Rs 1 lakh to Rs 3 lakh, you will be eligible for a discount of up to Rs 3,000.
- A rebate of 30% on late fee will be provided for premiums above Rs.3 lakh. A discount of up to Rs.3500 is allowed.
- LI has seen strong growth in its earnings. LIC’s income has registered an increase of Rs 682.9 crore in the June quarter. LIC’s income has increased as a result of increase in premium income.
Premium income has increased manifold from Rs 2.94 crore a year ago to Rs 4.5 crore now. Although the company’s margins have declined, profits have risen sharply. There has been a sharp increase in earnings since LIC switched products.
