LIC Launches Revival Drive for Lapsed Policies with Up to 30 Percent Fee Waiver

The Life Insurance Corporation of India (LIC) has rolled out a nationwide Special Revival Campaign aimed at helping policyholders reinstate their lapsed insurance policies with significant concessions on late fees. The campaign, which began on August 18 and will run until October 17, 2025, is part of LIC’s broader effort to retain customers and reinforce financial protection for families who may have missed premium payments due to unforeseen circumstances.

This limited-period initiative applies to individual, non-linked policies that have lapsed during the premium-paying term and have not yet completed their policy duration. LIC is offering up to 30 percent concession on late fees, capped at Rs 5,000, depending on the premium amount. For micro-insurance plans, the late fee waiver is a full 100 percent.

Key highlights from the revival campaign

- Campaign duration: August 18 to October 17, 2025  
- Applicable to individual, non-linked policies within the premium-paying term  
- Up to 30 percent concession on late fees, capped at Rs 5,000  
- 100 percent late fee waiver for micro-insurance policies  
- Policies eligible for revival within five years from the first unpaid premium  

Eligibility and revival process

To qualify for revival under this campaign, the policy must be in a lapsed state due to non-payment of premiums but still within the premium-paying term. Policies that have matured or completed their term are not eligible. Policyholders must pay all overdue premiums along with applicable interest and submit proof of continued insurability, which may include medical reports or declarations.

- Policies must be lapsed but not matured  
- Revival allowed within five years from the first unpaid premium  
- Medical and health requirements remain applicable  
- Revival can be initiated through LIC agents, branches, or customer service channels  

Financial and coverage benefits

Reviving a lapsed policy restores the full insurance coverage and associated benefits, including death and maturity claims, loan eligibility, and bonuses. LIC emphasizes that keeping policies in force is essential for long-term financial security and family protection. The campaign is designed to support customers who may have missed payments due to financial hardship, illness, or other personal challenges.

- Restores full insurance coverage and policy benefits  
- Reinstates eligibility for loans and bonuses  
- Strengthens financial protection for dependents  
- Avoids the need to purchase new policies at higher premiums  

Customer outreach and support

LIC has launched a multi-channel outreach program to inform policyholders about the revival campaign. Notifications are being sent via SMS, email, and postal communication. LIC agents are actively contacting customers with lapsed policies to guide them through the revival process. Dedicated helpdesks have been set up at branch offices to handle queries and documentation.

- Personalized outreach via SMS, email, and postal mail  
- LIC agents assisting with revival procedures  
- Helpdesks established at branches for walk-in support  
- Online resources available at LIC’s official website  

Market response and strategic intent

The revival campaign is part of LIC’s broader strategy to improve persistency ratios and reinforce its leadership in the life insurance sector. By offering financial relief and simplified revival procedures, LIC aims to bring back millions of policyholders who may have dropped out of the system. The initiative also supports the government’s financial inclusion goals by ensuring continued access to life insurance.

- Supports LIC’s persistency and retention targets  
- Aligns with financial inclusion and social protection objectives  
- Reinforces LIC’s position as India’s largest life insurer  
- Expected to improve customer satisfaction and brand loyalty  

Looking ahead

With the Special Revival Campaign now underway, LIC is urging all eligible policyholders to take advantage of the fee concessions and restore their coverage before the October 17 deadline. The initiative offers a timely opportunity to secure long-term financial protection without incurring heavy penalties, especially for families navigating economic uncertainty.

Sources: Economic Times, News18, Business Standard, Zee News.

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