Along with extension of revival period, IRDAI, in its latest guidelines, has asked insurance companies to incorporate many other changes.
Good news for LIC customers. The company has decided to increase the revival period of its 32 products and will also be relaunching its insurance plans as per the new guidelines of IRDAI. As per the new guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI), instead of the existing revival period of 2 years, insurance policies issued from January 01, 2014 by Life Insurance Corporation (LIC) of India can now be revived within 5 years from the date of the first unpaid premium (FUP), starting November 4, 2019.
In the earlier policies of LIC of India, the revival period was 5 years from the date of the first unpaid premium, but for the new policies launched after implementation of the IRDAI Regulations, 2013, the revival period was reduced to 2 years.
However, in its recent guidelines, IRDAI has asked the insurance companies to increase the revival period of non-linked policies to 5 years from the date of first unpaid premium. To comply with this provision, LIC of India has decided to increase the revival period of 32 of its products to 5 years and that of its ULIP plan, New Endowment Plus, to 3 years from the date of the first unpaid premium.
Along with extension of revival period, IRDAI, in its latest guidelines, has asked insurance companies to incorporate many other changes. To incorporate those changes, LIC of India has also decided to relaunch its existing policies with new terms and conditions.
In this connection, the government sector insurance behemoth has asked its Regional Managers (RMs) to ensure that adequate policy bond stationery for policies issued up to November 30, 2019 is available in every Division under the Zones of respective RMs.
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Until the modified compliant products as per IRDAI Products Regulations, 2019 are introduced, the Divisions are also instructed by the LIC of India, through a Circular dated October 29, 2019, to print adequate copies of the changed terms and conditions as endorsements, so that the endorsements may be sent to the policyholders along with the policy bonds with immediate effect.
Following are the 32 products, in which, the LIC of India has extended the revival period to 5 years: