LIC has permitted its policyholders to revive their policies which have been lapsed of over 2 years, in a bid to help improve persistency ratio. In an official statement, LIC further said that the policies that have lapsed for more than two years and were not allowed to be revived earlier can also be revived now. 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 nonpayment of premium, it said.
With a view to extend 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. Vipin Anand, LIC managing director, 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.
