LIC Launches Special Campaign to Revive Lapsed Individual Policies with Discounts
LIC offers discounts to revive lapsed policies, providing a crucial opportunity for policyholders.
Photo by Jon Tyson
Life Insurance Corporation of India (LIC) has launched a special campaign to enable policyholders to revive their lapsed individual policies. This initiative, running from January 1 to March 2, offers concessions on late fees, making it easier for policyholders to reinstate their coverage.
The campaign targets policies that have lapsed due to non-payment of premiums, providing a crucial opportunity for millions to regain their financial security. This move by LIC, a major public sector insurer, underscores its commitment to customer welfare and financial inclusion, ensuring that more people can maintain their life insurance coverage, which is vital for family protection and long-term savings.
मुख्य तथ्य
LIC launched a special revival campaign for lapsed individual policies
Campaign period: January 1 to March 2
Offers concessions on late fees
UPSC परीक्षा के दृष्टिकोण
Role of Public Sector Undertakings (PSUs) in social welfare and financial inclusion.
Regulation of the insurance sector by IRDAI and its mandate.
Government's commitment to financial inclusion through various schemes (e.g., PMJJBY, PMSBY).
Challenges faced by the Indian insurance sector, including low penetration and high lapse rates.
Evolution and reforms in the Indian insurance industry, including nationalization and liberalization.
दृश्य सामग्री
LIC's Market Dominance & Campaign Reach (Jan 2026)
This dashboard highlights LIC's significant presence in the Indian life insurance sector and the potential scale of its policy revival campaign, underscoring its role in financial inclusion.
- LIC's Market Share (New Business Premium)
- 62%Stable
- Total Individual Policies in Force (LIC)
- 29 Crore+Growing
- Number of Agents (LIC)
- 13.5 Lakh+Stable
- Insurance Penetration (India)
- 4.5%Slightly Up
LIC continues to be the largest life insurer, holding a dominant share of the new business premium, despite increasing competition from private players. This campaign aims to retain existing policyholders and strengthen its market position.
LIC serves a vast number of policyholders, making its initiatives like the revival campaign critical for a significant portion of the Indian population's financial security. The campaign targets a subset of these policies that have lapsed.
LIC's extensive agent network is a key strength for reaching remote areas and driving financial inclusion. These agents play a crucial role in implementing revival campaigns and customer outreach.
While growing, India's insurance penetration (premium as % of GDP) remains below global averages. Campaigns like LIC's contribute to improving this figure by reinstating coverage and promoting the value of insurance.
और जानकारी
पृष्ठभूमि
India's insurance sector has a rich history, marked by significant nationalization efforts post-independence. Life Insurance Corporation of India (LIC) was established in 1956 by nationalizing 245 private Indian and foreign insurers, aiming to provide widespread life insurance coverage across the nation. Similarly, general insurance was nationalized in 1972, leading to the formation of General Insurance Corporation (GIC) and its four subsidiaries.
While the sector was liberalized in 1999 with the entry of private players, public sector insurers like LIC continue to hold a dominant position, especially in rural areas and among lower-income groups, playing a crucial role in financial inclusion. Lapsed policies, often due to non-payment of premiums, remain a persistent challenge, leading to policyholders losing their coverage and impacting the insurer's persistency ratios.
नवीनतम घटनाक्रम
Life Insurance Corporation of India (LIC) has launched a special campaign from January 1 to March 2, 2024, to enable policyholders to revive their lapsed individual policies. This initiative offers concessions on late fees, making it easier for policyholders to reinstate their coverage. The campaign specifically targets policies that have lapsed due to non-payment of premiums.
Such campaigns are vital for customer retention, promoting financial literacy, and ensuring that the benefits of life insurance – such as family protection and long-term savings – are not lost due to temporary financial distress or oversight. This move by LIC underscores its commitment to customer welfare and financial inclusion.
बहुविकल्पीय प्रश्न (MCQ)
1. Consider the following statements regarding the recent campaign by Life Insurance Corporation of India (LIC): 1. The campaign aims to revive lapsed individual policies by offering concessions on late fees. 2. It targets policies that have lapsed due to non-payment of premiums. 3. LIC operates as a wholly-owned subsidiary of the General Insurance Corporation of India (GIC). 4. The campaign is regulated by the Reserve Bank of India (RBI) as part of financial stability measures. Which of the statements given above is/are correct?
उत्तर देखें
सही उत्तर: A
Statement 1 is correct as the news explicitly mentions the campaign offers concessions on late fees to revive lapsed policies. Statement 2 is correct as the campaign targets policies lapsed due to non-payment of premiums. Statement 3 is incorrect; LIC is a statutory corporation established under the LIC Act, 1956, and operates independently, not as a subsidiary of GIC. GIC itself was nationalized later and restructured. Statement 4 is incorrect; the insurance sector, including LIC, is regulated by the Insurance Regulatory and Development Authority of India (IRDAI), not the RBI.
2. With reference to the Indian insurance sector, consider the following statements: 1. The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory body responsible for regulating and promoting the insurance and re-insurance industries in India. 2. Life insurance policies primarily cover risks associated with property and casualty, while general insurance covers human life. 3. The nationalization of life insurance companies in India led to the formation of the Life Insurance Corporation of India (LIC) in 1956. Which of the statements given above is/are correct?
उत्तर देखें
सही उत्तर: C
Statement 1 is correct. IRDAI is indeed a statutory body established under the IRDAI Act, 1999, to regulate and promote the insurance and re-insurance sectors in India. Statement 2 is incorrect. Life insurance policies cover human life, providing financial protection to beneficiaries upon the policyholder's death or maturity. General insurance, on the other hand, covers non-life assets and liabilities, such as property, health, motor vehicles, and travel. Statement 3 is correct. The nationalization of 245 private Indian and foreign insurers in 1956 led to the formation of LIC, consolidating the life insurance business under a single public entity.
3. Which of the following statements correctly describes the concept of 'financial inclusion' in the context of insurance?
उत्तर देखें
सही उत्तर: B
Option B correctly defines financial inclusion in the context of insurance. It emphasizes making insurance products accessible and affordable to all segments of society, particularly the underserved and vulnerable populations, to help them manage risks and build financial security. Option A is incorrect as financial inclusion aims for broad access, not exclusivity. Option C is incorrect as while profitability is a business goal, financial inclusion's primary objective is social and economic empowerment, not just profit maximization. Option D is incorrect as financial inclusion promotes voluntary access and choice, not mandatory purchase, which might not be feasible or desirable for all.
4. Consider the following pairs of Government of India's social security schemes and their primary objectives: 1. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Provides life insurance cover to bank account holders. 2. Pradhan Mantri Suraksha Bima Yojana (PMSBY): Offers accidental death and disability cover. 3. Atal Pension Yojana (APY): A voluntary pension scheme for workers in the unorganized sector. Which of the pairs given above are correctly matched?
उत्तर देखें
सही उत्तर: D
All three pairs are correctly matched. 1. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is indeed a life insurance scheme offering a renewable one-year term life cover of Rs. 2 lakh for death due to any cause, available to people in the age group of 18 to 50 years having a bank account. 2. Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accidental insurance scheme offering accidental death and disability cover of Rs. 2 lakh for accidental death and full permanent disability and Rs. 1 lakh for partial permanent disability, available to people in the age group 18-70 years having a bank account. 3. Atal Pension Yojana (APY) is a government-backed pension scheme primarily aimed at providing social security to workers in the unorganized sector, allowing them to make voluntary contributions to receive a fixed pension after 60 years of age.