Types of revival for lapsed LIC policies

To keep the risk cover in force in your LIC policy a policyholder must pay his/her insurance premium on time or within the grace period. If a policyholder failed to do so then his policy became lapse, and no risk cover is available under that policy.

To restart the risk cover in the policy, a policyholder has to revive the policy by paying all the due premiums up to the date of revival.

Nowadays policies can be revived in other branches if the policy is to be revived on DGH and Medical Report only. If there is any special medical report is called for then policyholder has to visit his servicing branch to revive his/her policy. But sometimes it’s not possible for the customer to deposit all the due premiums to revive his/her policy, to make the revival process easy and convenient, LIC have different types of revival scheme so that customers can revive their policy to restart the risk cover.

Types of Revival Schemes in LIC

There are five types of  schemes are available in LIC of India. These are Ordinary Scheme, Special Scheme, SB cum Revival scheme, loan cum revival scheme and installment revival scheme.

Ordinary Revival Scheme

Its the simplest scheme of all, all you have to do is to visit your servicing branch, get the revive quotation from the branch and deposit all the due premiums in your policy with DGH (Declaration of Good Health) or special medical report wherever applicable as per age and sum to be revived.

Special Revival Scheme

Sometimes it is not possible to pay all the due premiums due to huge amount to revive policy, and policy holder do not want to loose the money he has already paid as premium in particular policy (Majority of the policies acquire paid up value after premium have been paid for full three years and 3 years completed in policy). For customer who’s policy have not acquired paid up value (Premium is not paid for 3 years) and policy is in lapsed condition for not less than 6 months and not more than 3 years (6 months < FUP > 3 years), the policy can be revived under Special Scheme.

Under this scheme Date of commencement can be increased up to 2 years of original date of commencement and

• other requirements will be same as of ordinary scheme
• the difference of new and old premium must be deposited with any due premium
• Since DOC and maturity date will shift, consent of policyholder is required
• endorsement fee of Rs. 50 and policy bond for endorsement is required
• this type of revival can be done once in policy term
• Policies under withdrawn plans can be revived under this scheme, even if the new date of commencement falls beyond the date of withdrawal of the plan provided the other conditions applicable for the scheme are satisfied.
• Some policies are not allowed under this scheme.
• For policies issued before 01/01/2014, a new date of commencement (DOC) should not be later than 31/12/2013. (As per LIC circular CO/CRM/1012/23 dated 17/03/2016)

As per the LIC of India circular CO/CRM/1012/23 dated 17/03/2016, Special Revival scheme is not available to new plans launched on or after 01/01/2014.

Loan-cum-Revival Scheme

Under this scheme, the policyholder can take the loan in his/her policy and that loan amount is adjusted in premiums. It is not necessary that your policy has acquired paid up value, even policy where paid up value is not acquired can be revived. The loan amount is calculated as if the policy is in force condition till the date of revival. Very useful scheme if the policyholder is not able to pay lump sum revival amount from his pocket at that time.

Survival Benefit cum Revival Scheme

The revival of money back policies can be allowed under ordinary revival by taking into account the amount of survival benefit that had fallen due. The policyholder has to submit usual revival requirements, S.B. discharge form and policy document.

This scheme is allowed for

1. Survival benefit amount is more than revive amount and balance amount after utilizing amount for revivel is payable to policyholder
2. Survival benefit amount is less than revival amount. However, shortfall amount will be required to be paid by policyholder

Revival By Installment Method

Under this scheme, the amount is spread over the next two year. Revivl under this scheme will be permitted-

• for the policyholder who is not in a position to pay the arrears of premiums in one lump sum and policy cannot be revived under special scheme.where the arrears of premiums are for more than 1 year.
• There is no loan outstanding under the policy at the time
• No survival benefit falls due during the installment paying period of revivl
• The arrears of premiums will be calculated in the usual manner as under ordinary scheme. Depending upon the mode of payment, life assured has to pay initially 6 Monthly premiums, 2 Quarterly premiums, 1 Half-premium , or ½ of Yearly premium. Balance of the arrears will be spread over in the remaining premium due date in current policy anniversary and two full policy anniversary thereafter

To download DGH (Declaration of Good Health) Form No. 680 Click Here