LIFE
• Claim Settlement
  
• Hints on proposal Forms
  
• Nomination
  
• Revival of Policies
  
• Loan on Policies
  
• Lost Policies
  
• Tax Benefits
  
• Surrender Value
  
• Assignment
  
• Delayed Payment of Premiums
  
  
  NON-LIFE
• Claim Settlements
  
• Hints on Proposal Forms
  
• Legal Aspects
  
• Guide
  

Revival Of Policies

A policy lapses if the premiums are not paid within the grace period allowed.

In case of LIC a lapsed policy can be revived within 5 years from the date of first unpaid premium. There are five different schemes under which a policy can be revived.

Ordinary Revival Scheme

• Under this scheme, all the arrears of unpaid premiums along with interest have to be paid.

• Interest is calculated on the unpaid amount of premiums. Rate of Interest depends on when the policy was commenced. The current interest rate charged is 9% per annum compounded yearly. For certain plans 12% interest per annum is charged.

• Also, a 'Declaration of Good Health' in Form No. 680 and medical certificate, if necessary, is required for effecting revival.

Special Revival Scheme

• If a person is not in a position to pay all the arrears, then, he can choose this scheme.

• Under this scheme, the date of commencement of the policy is shifted so that the policy is lapsed just prior to the date of revival. This means that the date of commencement is advanced approximately by the period of lapse.

• Where the lapsed period is over 2 years, only 2 year period is ignored while arriving at the new Date of commencement and on revival one quarterly installment at the new rate of premium for the new age has to be paid.

• Other requirements like 'Declaration of Good Health' and Medical wherever necessary are required as in Ordinary Revival.

Special Revival is allowed under the following conditions

• The policy should not have acquired any surrender value.

• Revival should be within 3 years of lapse.

• Special Revival is allowed only once during policy term.

Revival by Instalment method

If a policyholder cannot pay arrears in one lump sum and if the policy cannot be revived under Special Revival Scheme, he can make use of Instalment Revival Scheme. Under this scheme, on the date of revival the policyholder has to pay immediately.

• 6 months premiums, if mode is Monthly,

• 2 quarterly premiums, if mode is Quarterly,

• 1 Half year premium, if mode is Halfyearly,

• Half of the yearly premium, if mode is Yearly.

The balance of the revival amount is paid in installments spread over two years along with normal premium installments.

Other requirements regarding health are as required in Ordinary Revival Scheme.

Loan-cum-Revival Scheme

If a policy acquires surrender value on the date of revival, the policy can be revived by taking a policy loan.

Loan amount will be calculated treating the premiums as paid up to the date of revival.

Shortfall, if any, in revival amount is called for. If loan amount is more than required for revival, the excess will be paid to the policyholder.

Survival Benefit-cum-Revival Scheme

In a Money-back type of policy, the Survival Benefit which falls due, can be used for revival of the policy if the date of revival is later than the Survival Benefit due date.

If the survival benefit is less than the revival amount, the short fall will be called for.

If the survival benefit is more than the revival amount, the excess is paid back to the policyholder.

The other requirements for normal survival benefit settlement and revival requirement are to be fulfilled.