LIC Announces Special Drive to Restart Lapsed Life Insurance Policies

As per news reports, Life Insurance Corporation of India (LIC) has announced a special drive to allow policyholders to revive lapsed individual life insurance policies.  

The campaign will run from January 1, 2026, to March 2, 2026, and will be available across India. It is targeted at customers who missed premium payments due to difficult personal or financial situations. 

Who Can Apply 

The revival facility is open for policies that have lapsed during the premium-paying term and have not completed their policy tenure.  

LIC said such policies can be revived within five years from the date of the first unpaid premium, subject to the existing policy terms and conditions. Policies must remain active after revival to receive full insurance benefits. 

Late Fee Relief 

As part of the campaign, LIC is offering concessions on late fees for eligible non-linked insurance plans. The relief is capped at 30% of the applicable late fee, subject to a maximum of ₹5,000.  

The concession amount depends on the total receivable premium due at the time of revival. 

Concession Structure 

For policies with a total receivable premium of up to ₹1 lakh, the maximum concession allowed is ₹3,000. Where the receivable premium falls between ₹1,00,001 and ₹3 lakh, the concession increases to ₹4,000.  

For policies with receivable premiums of ₹3,00,001 and above, the late fee concession is capped at ₹5,000. 

Micro Insurance Policies 

LIC has extended additional relief to holders of micro insurance policies, offering a 100% waiver on late fees during the campaign period.  

The insurer has clarified that this concession applies only to late fees. Medical or health-related requirements, where applicable, will continue as per policy conditions. 

Purpose of the Initiative 

According to LIC, the campaign is meant to help policyholders restore insurance cover that may have lapsed due to missed payments. Reviving a policy allows continuity of cover and keeps the original policy benefits intact, subject to compliance with revival conditions. 

LIC Share Price Performance  

As of January 5, 2026, 10:34 am, Life Insurance Corporation of India (LIC) share price was trading at ₹859.70, a 0.13% down from the previous closing price. 

Read More: Who are Sahaj Mitrs? The 4.5 Lakh-Strong Force Driving the LIC-Sahaj Insurance Alliance! 

Conclusion 

The revival campaign offers a time-bound option for eligible policyholders to reinstate lapsed life insurance policies, with defined late fee concessions and no change to underlying policy terms. 

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