Delayed Payment of Premiums
If the due premiums are not paid within the days of grace, the policy lapses. However, such a policy can be revived by furnishing revival requirements, i.e., paying interest on premiums for the lapsed period and evidence regarding its continued good health.
The policy can be revived by mere payment of arrears with interest, if six months have not lapsed from the first unpaid premium.
In case of LIC rate of interest charged are,
6% per annum compounded yearly for policy with Date of commencement up to 14.7.72,
7.5% per annum compounded yearly for policy with Date of commencement from 15.9.72 to 31.12.86,
9% per annum compounded yearly for policy with Date of commencement from 1.1.87 onwards.
For, certain new plans, the revival interest rate is 12% per annum.
The interest charged for Delayed Payment of Premiums for Re.1.00 premium is as follows:
| Delayed Months |
Late Fee Rate |
| |
6% |
7.5% |
9% |
12% |
| 1 |
0.005 |
0.0062 |
0.0075 |
0.010 |
| 2 |
0.010 |
0.0125 |
0.0150 |
0.020 |
| 3 |
0.015 |
0.0187 |
0.0225 |
0.030 |
| 4 |
0.020 |
0.0249 |
0.0300 |
0.040 |
| 5 |
0.025 |
0.0311 |
0.0375 |
0.050 |
| 6 |
0.030 |
0.0373 |
0.0450 |
0.060 |
|
Individuals
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