Revival of Lapsed Policies | LIC

POLICY SERVICING DEPARTMENT
Revival of Lapsed Policies

REVIVAL OF LAPSED POLICIES
CHAPTER 1
1. GENERAL INTRODUCTION
(i) If a premium under a Policy is not paid within the days of grace, the Policy lapses
subject to such privileges as are applicable to it in terms of the Policy Contract.
(ii) If the conditions for revival of lapsed Policies in any Unit are onerous compared to
those stated in the Corporation’s Prospectus, the conditions and privileges
mentioned in the Corporation’s Prospectus should be applied. If, however, the
Policy conditions of any Unit confer greater advantage on the Policyholder than the
conditions mentioned in the Corporation’s Prospectus, the former conditions should
be made applicable.
(iii) DAYS OF GRACE: One month but not less than 30 days for payment of Yearly,
Half yearly and Quarterly premiums and 15 days for monthly premiums. The Grace
period should be reckoned from the day following the due date of premium. If the
last day of the Grace Period as reckoned above falls on a Sunday or Public
Holiday, the Grace Period should be extended to the following day. However, if the
premium is not paid within the Grace Period as reckoned above, calculation of “the
period of 14 days” or “one month” or “two months” or the “Claim Concession period
of six months or one year” will include the due date also. If the day so arrived at
happens to be a Sunday or Public Holiday, the premium with late fee should be
paid on the previous working day.
2. ORDINARY REVIVAL
(i) If the premium under a Policy is not paid within the Days of Grace but is paid
within six months of the due date of first unpaid premium, no evidence of health is
necessary but interest at the rate of 6% p.a. subject to minimum of 0.50 Paise in
respect of Policies issued with risks date prior to 15.9.1972, 7 ½ % p.a. subject to
minimum of Re.1/- in respect of Policies issued with risk date from 15.9.1972 to
31.12.1986 is necessary for revival of the Policy. However, in respect of Policies
issued with risk date prior to 1.1.1987, if revival is completed within 14 days from
the expiry of the Days of Grace, a simple revival charge of 0.50 Paise for Policies
issued with risk date prior to 15.9.1972 or Re.1/- for Policies issued with risk date
from 15.9.1972 to 31.12.1986 will be required, irrespective of the amount of
premium
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(ii) With effect from 10-04-2005, for revival of policies irrespective of DOC or
Plan, wherever the rate of interest was more than 8 %, the same stands
reduced to 8 % subject to a minimum of Rs. 5/- , for financial year 2005-2006.
Note:
For Policies issued with risk date prior to 1.1.1987, if a premium is paid within 14
days from the expiry of the Days of Grace without late fee, late fee need not be
called for, but the premium may be adjusted, if otherwise in order, irrespective of
whether the Policy is subject to Automatic Paid-Up Value clause or Automatic
Premium Loan Clause.
Interest will be calculated for full month from the due date of each premium
paid late. Fraction of a month in excess of 14 days will be treated as a full
month for the purpose of charging interest. If the number of days in excess of
a full month is 14 or less, the same will be ignored and no interest will be
charged for the same.
(iii) In the case of a policy which originally was subject to a non-forfeiture clause
providing for automatic advance of premium from the surrender value of the
policy and which has been converted into a reduced paid-up policy either in
terms of a policy privilege or otherwise, reinstatement to its full sum assured
may be allowed without evidence of good health if such reinstatement is
applied for within six months of the date with effect from which the policy
has been made paid-up, and the amount required for revival is duly paid.
(iv) In an Endowment type of Policy, with the exception of Anticipated
Endowment Policy, if the revival is sought during a period of 12 months before the
Policy is due to mature, no evidence of health is necessary. The Policy may be
revived on payment of arrears of premium with interest thereon. However, in the
case of Anticipated Endowment Policy, a Personal Statement regarding health
(Form No.680) should be called for.
(v) For revival of policies under Jeevan Kishore (T – 102), Jeevan Sukanya (T –
109) & Children Money Back (T – 113) , Komal Jeevan (T – 159)
before the commencement of risk, D.G.H. in F.No.720 (the same form used for
C.D.A. plans) is required. However, if the age L.B.D. of the L.A. is 10 years or
more, Medical Report is compulsory. After the Date of Commencement of risk but
before completion of 18 years by the life assured, Medical Report is required.
Where the age of the Life Assured is 18 years or more on the date of revival,
Nonmedical/Medical rules may be applied and for the purpose of obtaining
revival requirements, they may be treated at par with Endowment Plans.
Moreover, in Jeevan Sukanya (T – 109), if revival of the policy is sought after

marriage of the L.A., proof of continued insurability is required from both,
the L.A. and her husband. Consequently, a question should be added in the
D.G.H. form “Whether Married”?
3a(i) _In case of a lapsed policy where under the premiums have been received for at
least 5 years, its revival may be effected within 12 months from the due date of the
first unpaid premium without evidence of health on collecting all the arrears of
premiums with interest (except Temporary Assurances, T-94, T-111, T-150,T-
153,T-164). After one year from the date of lapse, our existing rules for revival will
apply.
NOTE: In case of Asha Deep Plans where revival is effected without evidence of
health, the restrictive lien clause of one year is not operative. In respect of
CDA policies on the life of minor, the concession as above is available only if the
risk has commenced.
In case of a lapsed policy under Jeevan Suraksha (T – 122) with life cover, its
revival may be effected, after the expiry of 2/3rd of the deferment period, without
evidence of health, on collecting all the arrears of premium with interest thereon.
Policies issued under New Jana Raksha Plans (T – 87) & (T – 91) and Jeevan
Sneha Plans (T – 128) can be revived within 3 years from the date of First Unpaid
Premium without evidence of health provided two full years premium have been
paid under the policy.
* Relaxation, under plan Anmol Jeevan (T-153 ) and Anmol Jeevan-1 (T-164),
which are lapsed due to non payment of premiums within the grace period of 15
days can be revived as under
Period from Revival Requirements:
F U P
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1) 16 days to 60 days Arrears of premiums with interest thereon
2) 61 days & above Arrears of premiums with interest thereon
subject to submission of proof of continued
insurability to the satisfaction of the
Corporation as per existing underwriting rules.
Jeevan Suraksha (Without Life Cover) & Jeevan Dhara policies can be revived on
payment of arrears of premium with interest without evidence of health.

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Revival of policies under Bima Sandesh and Bima Kiran Plan within 6 months
from first unpaid premium :
Policies issued under Bima Sandesh & Bima Kiran Plans which have lapsed
due to non-payment of premiums within the days of grace, can be revived
within 6 months from the due date of first unpaid premium by paying arrears
of premiums with interest thereon and no evidence of health is necessary.
Ref:Circular CO. Ref. Act1. /1583/4 dtd. 5.9.96.
3a(ii) If the premiums under a lapsed policy have been received for 10 years or one half
of the total term of the policy, whichever is more, revival, after 12 months from the
due date of the first unpaid premium but within 18 months of the date of lapse, will
be considered on collecting all the arrears of premiums with interest and on the
strength of satisfactory Personal Statement of Health only. After 18 months, our
usual rules for revival will apply.
3(b) After expiry of six months from the due date of the first unpaid premium in cases
where (3)(a) above does not apply if the overdue premiums with interest have been
received within one month thereafter, a Policy can normally be revived subject to
satisfactory Personal Statement regarding Health (Form No. 680), provided the
personal statement is received within two weeks of its being called for and
provided further (i) the original Policy has been issued at the tabular rate, or (ii) if
the Policy was issued or, subsequently revived, with an extra, lien or endorsement,
such extra, lien or endorsement was due to occupation or sex only, (iii) there is no
adverse information regarding health, habits, occupation, etc. of the Assured on
record, and (iv) in the Personal Statement regarding Health that is completed for
revival, nothing adverse in respect of the health, habits, etc. of the Life Assured is
discovered.
Note:
Policies under the following New Plans also can be revived in the seventh
month as per the concessions allowed:
Jeevan Sarita, Jeevan Kishore, Jeevan Chhaya, Jeevan Aadhar, Jeevan
Suraksha, Jeevan Sanchay, Jeevan Sneha, Jeevan Balya, Marriage
Endowment/Education Annuity Plan, New Janaraksha, Jeevan Vishwas.
Jeevan Surabhi, Bima Sandesh, Bima Kiran, Jeevan Shree, Children Money
Back, Jeevan Saathi, Jeevan Mitra, Jeevan Griha, Jeevan Sukanya, Jeevan

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Asha-I, Jeevan Asha II, Asha Deep and Asha Deep II being high risk plans,
seventh month revival is disallowed.
In cases where (3) (a) (i) & (ii) above does not apply and where the Policy has
remained in lapsed condition between six months and one year and is not one
under Temporary Assurance (Table 43), convertible Term Assurance (Table 58),
Bima Sandesh (Table 94) or Bima Kiran (Table 111) Plan, the revival of the Policy
issued under Medical Scheme can be considered on the strength of a Personal
Statement regarding Health (Form No.680) if the sum at risk is up to Rs.10,000/-
and provided the life is First Class, accepted at Ordinary Rates or with a standard
extra for occupation, sex or a standard physical impairment which covers all
impairments under Group A and impairments of “loss of teeth (more than 10 teeth)”
and “not protected against Small Pox” under Group B of Annexure C (extra
premiums for certain types of physical impairments) in the Underwriting Manual
(Amended up to March 97) and/or on subsequent revival his/her Policy has been
revived on original terms and the Policy file does not reveal any adverse features
regarding the health and habits of the life assured or in any evidence of health
already received and provided also the life assured has undergone medical
examination for the same Policy or for any other Policy within last five years from
the date on which revival is being considered.
In respect of Multipurpose Plan the revival can be considered on Personal
Statement regarding Health (Form No. 680) if the sum at risk is upto Rs. 5,000
subject to other conditions as above.
3(c) Where an enquiry for loan has been made within a period of six months from the
due date of the first unpaid premium and the amount of loan is sufficient for the
purpose, but the requirements have not been completed within that period, no
declaration of good health need be called for provided the loan application and all
other requirements are complied with within a fortnight from the date of our writing
to the Policyholder. Late fee should be charged for six months only.
Note:
(1) These concessions will not apply if the plan of assurance is either Temporary
Assurance or Convertible Term Assurance, Bima Kiran or Bima Sandesh,
Anmol Jeevan, New Bima Kiran, New Anmol Jeevan.
(2) The above revival concessions do not constitute any extension of the
existing claim concession period. Only the rules regarding revival of policies
are relaxed and when policies are revived on the basis of the above
relaxations, all the other revival formalities should be observed by the Branch
Offices.

(3) The concession 3(a) (ii), 3(b) and 3 (c) is not applicable if age of LA is
above 60 yrs.
3(d). In the case of a policy which being subject to a non-forfeiture clause providing for
automatic advance of premiums from the surrender value of the policy, lapses on
account of the net surrender value being insufficient to meet a due premium,
reinstatement may be permitted within six months of the date of total lapse on the
strength of a satisfactory Personal Statement regarding Health. (Form No. 680)
3(e). Reinstatement of a paid up policy, which has been written off to loan, may be
allowed without any evidence of health if reinstatement is applied for within 6
months of the date of surrender. If reinstatement is applied for after 6 months, a
M.R., at the cost of the policyholder, should be called for.
3(f). Consistent with the provisions in sub-section (a) above, in an Endowment type of
Policy, if the revival is sought within a period of 12 to 24 months before the date of
maturity, the revival may be considered on the strength of Personal Statement
regarding Health (Form No. 680).
3(g). In respect of female lives where D.G.H. has been submitted for revival, the same is
to be considered valid for a period of 3 months from the date of last menstruation
instead of calling for a fresh D.G.H. at the expiry of every month from the date of
last menstruation if revival is not completed within that period. This would be
applicable provided the following conditions are fulfilled:
(i) The policies are issued to female lives with earned income on the same
terms as applicable to male lives.
(ii) The Life Assured did not have any miscarriages in the past.
(iii) The Life Assured should be an educated lady with minimum S.S.C.
qualification and is expected to seek medical assistance for confinement.
3(h) The Revival of Anticipated Endowment or Money Back Policy can be allowed under
Ordinary Revival Scheme by taking into account the amount of Survival Benefit that
will fall due subject to revival, towards the accumulated arrears of premiums with
interest required for the revival.
3(i). The facility of Loan-cum-Revival will be allowed to both (A) Policies which have
acquired the requisite Surrender Value or Paid-up Value and (B) also to Policies
which had not acquired such Surrender Value or Paid-up Value before lapsation.
Loan value will be calculated assuming that the premiums due up to the date of
revival have been paid. The policyholder will be required to remit only the balance
amount, after deducting from the total consideration amount the maximum loan
available, along with other requirements for revival and the Loan cum-Revival
action should be taken simultaneously. This is subject to all conditions for revival

under Ordinary Revival Scheme being satisfied. The policy should be eligible for
revival on the basis of the requirements received.
NOTE:
Wherever the amount of survival benefit/loan as mentioned in 3(h) and 3(i) is
not sufficient to cover the arrears of premium and interest and hence the
balance is received by cheque, the revival action should be taken only after
the realisation of the cheque.
4 (i). At any time after the first six months but not later than the expiry of a period of 5
years from the due date of the first unpaid premium, consideration of revival can be
proceeded with, on production of a Medical Report on the Assured’s Life unless the
revival can be considered on Non-Medical basis or without production of any
evidence of good health.
(ii) Revival of policies lapsed beyond 5 yrs is now withdrawn.
.
(iii) Policies issued under the following plans can be revived without any
evidence of health, on payment of only arrears of premium with interest there
on:
1. Pure Endowment Plan (T-21)
2. Deferred Annuity Plan (T-45)
3. Jeevan Dhara Plan (T- 96)
4. Jeevan Suraksha Plan (T-122) (without life cover)
3. REVIVAL ON NON-MEDICAL BASIS
i) The maximum Sum Assured limit for consideration of revival under the various
Non-Medical Schemes are same as applicable to underwriting of new proposals.
Under a Policy which comes up for revival if in the event of a new proposal
being submitted by that life assured the Corporation would be prepared to consider
it under Non-Medical Scheme, the revival of the policy should also be considered
on Non-Medical basis.

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(ii) For revival of a policy on Non-Medical basis it should Inter-alia be seen that not
only does the “amount to be revived” (i.e. the sum assured less the paid up value
as on the date of lapse) not exceed the prescribed limit as above, but also that no
other policy or policies on the life of the assured issued on Non-Medical basis either
by the Corporation or by any Insurer whose business has been taken over by the
Corporation are in force for a total assurance (including amount under policy/ies
under revival) exceeding the above limit, other conditions being satisfied as for
consideration of a new proposal under the Non-Medical Scheme.
(iii) The Non-Medical (Special) and Non-Medical (General) Scheme having been
extended to female lives, revival of lapsed policies on female lives should also be
considered on Non-Medical basis, subject to the following:
(a) For Non-Medical (Special) Scheme, the female life assured must have
passed at least SSC or an equivalent examination and must be in
permanent service in the employment of Government (Central/State),
Municipal District Board or Local Board Offices or Schools, Hospitals etc. run
by any of these agencies, State Corporations, Public Sector Undertakings
and Public Limited Companies.
(b) For Non-Medical (General) Scheme, the female life assured must be literate
with own income. Illiterate and/or pregnant women and/or women having
undergone caesarian operation and/or women having had abortion/s or
miscarriage/s will not be accepted.
(c) The maximum Sum Assured inclusive of the amount to be revived under the
policy and Sum Assured under all in-force policies on the same life taken
and/or revived on Non-Medical (Special) basis must not exceed as specified
in the chart. Provided under 3 viz. Revival on Non-Medical Basis.
(d) All other conditions applicable under Non-Medical (Special) and (General)
Schemes for male lives must be fulfilled before considering revival of policies
on female lives on Non-Medical Scheme.
(iv) Where a policy issued under Non-Medical (General) Scheme lapses, the
evidence, of continued insurability necessary for its revival will be as follows:
(a) Within six months from the date of lapse, revival will be effected without any
evidence of continued insurability.
(b) Where the period since the date of lapse is six months or more the revival
will be subject to life assured submitting a Personal Statement regarding
Health in Form No. 680 and the same being found satisfactory.

4. REVIVAL ON MEDICAL BASIS
If a policy that has come up for revival cannot be revived on Non-Medical basis by
application of any of the foregoing rules then its revival will have to be considered
on Medical basis as follows :
Rated up Sum Assured/Sum at risk has to be arrived at in respect of certain
policies as in the case of new proposals for the purpose of exercising
financial powers and for determining the special reports to be called for.
5. MEDICAL EXAMINATION ARRANGEMENTS
The rules regarding arrangement for Medical Examination except Special Medical
Reports will be the same in the case of revival as in the case of new proposals,
except that, in the case of revival, for determining whether a Medical Examiner is
qualified to examine or not, “the amount to be revived” (stepped up in the case of
Policies as stated in 4(i) & 4(ii) above) and not the sum Assured under the Policy is
to be taken into account.
6. SPECIAL REPORTS FOR REVIVAL
The following procedure may be followed in the matter concerning requirements of
Special Reports in cases of revival :
(i) No Special Reports need be called if the outstanding term is 5 years or less,
unless some such reports are considered essential on account of very
special features depending on the merits of the case.
(ii) For outstanding term 6 to 9 years, the Special Reports are to be called for as
in (iii) below but the Sum Assured is to be taken as half the amount for
revival as calculated in (iii).
(iii) If the outstanding term is 10 years or more, Special Reports may be called
for, as prescribed on the basis of the attainted age, the Sum Assured for this
purpose being taken as only the Sum Assured less proportionate paid-up
amount as on the date of revival assuming the Policy to be in force, even
where the Policy had not acquired paid-up value on the date of lapse.
(iv) In the case of Whole Life Limited Payment Policies, the outstanding term is
to be taken as the number of years for which premiums are outstanding plus
5 if such number is 6 or over, and plus 2 if it is less. Whole Life Policies with
premiums payable for life are, for this purpose, to be treated as Limited
Payment Life Policies with premiums ceasing at age 70 years.
Special reports required for revival of policies is as applicable to new
proposals.

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7. REVIVAL ON THE STRENGTH OF MEDICAL REPORTS SUBMITTED IN
RESPECT OF A NEW PROPOSAL.
The Revival of Policy/ies may be considered on the strength of Medical Report/s
submitted in respect of new Proposal/s or revival of other policy/ies on the same
Life/Lives provided Medical Report/s is/are in force, the Medical Examiner/s is/are
authorised, and his/their limit is sufficient to cover both the amount of the Sum
Assured under the new Proposal/s and the amount to be revived under the
Policy/ies.
The procedure to be followed for obtaining extracts from medical reports and
underwriting of such cases is as follows:
Where revival of a previous policy is to be considered on the strength of medical
report submitted in connection with fresh proposal or revival of other policy
belonging to same Divisional Office the underwriting decision under fresh proposal
and/or revival of policy/ies will be taken by the same person after going through all
the papers. However, an extract of personal statement and medical report together
with revival decision will be filed in the policy file.
If a party has submitted medical report under fresh proposal or for revival of other
policy with one servicing Branch Office say, Office/”A” and his previous policy with
another Office, say Office/”B” is to be revived on the strength of medical report
submitted to Office/”A”, the following procedure should be observed.
Office/”B” should, for the purpose of considering the revival, call for an extract from
personal statement and medical report submitted to Office/”A”.
Office/”A should take up the consideration of the fresh proposal and/or revival of
policy attached to their Office as soon as papers are received by them provided no
extract from previous policy papers of Office/”B” is required before arriving at
underwriting decision as per rules laid down in the underwriting manual. Office/”A”
should take an underwriting decision and send an extract from personal statement
and medical report together with underwriting decision arrived at under the fresh
proposal and/or their policy to Office/”B”.
However, where an extract from policy papers of Office/“B” is necessary as per
rules before taking underwriting decision under fresh proposal and if the same is
not received by Office/”A” at the time of consideration of the proposal, Office/”A”
should immediately call for extract from previous papers of Office/”B” and after
receipt of the same, it should take underwriting decision under fresh proposal and
thereafter, an extract from proposal papers together with underwriting decision
arrived at, under the fresh proposal should be sent by Office/”A” to Office/”B”.
If the fresh proposal is accepted on terms other than as proposed at ordinary rates
or revival of policy is approved on other than original terms or approved on original

terms but the policy was issued with extra premium or some restrictions, the
Divisional Office/”A while noting the underwriting decision in the extract should also
indicate the reasons for charging extra premium or imposing the restrictions or for
approving revival on other than original terms.
Office/”B” should consider the revival of its Policy on the strength of extract of
personal statement and medical report together with underwriting decision under
proposal and/or policy received from Office/”A”. If the extract shows underwriting
decision other than ordinary rates and if detailed reasons for such decision are
necessary Office/”B” should refer back to Office/”A calling for detailed reasons for
such decision and also obtain copies of personal statement and medical report
submitted to Office/”A” before arriving at underwriting decision under revival of their
policy.
8. SPECIAL REVIVAL SCHEME
(a) The revival under this scheme may be allowed if the following conditions are
satisfied:
(i) The Policy, as on the date of lapse, must not have acquired any sur
render value.
(ii) Policy must have lapsed for not less than six months and not more
than three years reckoning upto the date of revival.
(iii) Revival under the Scheme must not have been effected under the
same Policy on a previous occasion.
(b) As regards evidence of good health, etc., the same rules as are applicable to
revival under Ordinary Revival Scheme, are applicable for consideration of
revival under Special Revival Scheme.
(c) If a policy is eligible for revival under the Special Revival Scheme and the
revival is effected, the policy will have to be endorsed for change in the date
of commencement, age, term of assurance (where applicable), instalment
premium, date of last instalment of Premium and the maturity date (for
endowment type of policies). On revival, the policy will be dated back for
such period as the lapsed policy was in force, subject, however, to the
condition that if the policy stood lapsed for more than two years, the policy
will be so dated back on revival that the new date of commencement does
not fall beyond two years from the original date. The policy would usually
have the same unexpired term of assurance at the date of revival as it had,
on the date of lapse. The revised premium payable on the policy from the
new date of commencement will be calculated for the same term of
assurance (unless change in the term is also required to be made) at the

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rate applicable to the age nearer birthday of the Life Assured at the new date
of commencement.
(d) The Life Assured will be required to pay a revival charge. This charge will be
the difference between the aggregate of the premium originally paid and the
amounts that would have been paid at the new rate of premium on revival
accumulated from the new date of commencement with interest at prevalent
rates reckoning from the due date of each premium with reference to the
new date of commencement together with the premiums that have already
fallen due on the policy with respect to the new date of commencement,
after allowing for the premiums already paid before the policy lapsed,
accumulated at the prevalent rate of interest reckoning from the due date of
each such premium, subject to a minimum revival charge of Rs.2/-. In
addition, premium for minimum period of three months at the revised rate as
at the date of revival should be called for. The policyholder shall also be
required to pay an endorsement fee and an endorsement effecting the
revival should be placed on the original policy bond.
(e) It may be noted that on revival under Special Revival Scheme, the period of
assurance will normally remain unaltered. However, it is to be kept in view
that on revival, the premium ceasing or maturity age, as the case may be,
should not extend beyond the maximum allowable under new policies of the
same class of assurance. Where this happens the terms of assurance or the
premium paying period, as the case may be, will have to be appropriately
reduced at the time of revival.
(f) If the policy stands assigned conditionally or absolutely, the consent of the
assignee is necessary for putting the endorsement on the policy before
reviving the policy under Special Revival Scheme.
I
n view of the changes in the Rate of Interest employed in the
calculation of revival charges from time to time and also changes in certain
policy conditions from time to time, care should be taken to see that the new
policy after special revival bears the proper rate of interest and the changed
policy conditions as applicable to new proposals as on the date of revival of
the policy, under Special Revival Scheme.
Where the revival is made by putting endorsements and not by issue
of a new policy, due care is to be exercised in effecting the appropriate
endorsement which will correctly reflect the changes in policy conditions
made. Form No. 5058 is to be used in respect of policies, where there is no
change in the rate of interest or other policy conditions and Form No. 5058-A
is to be used for policies where there is a change in the rate of interest or
other policy conditions applicable to the new policy after special revival.

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(g) The rates of premium to be charged on revival should be the current rate
irrespective of the new date of commencement. It is to be noted here that
policies under Jeevan Dhara can also be revived under Special Revival
Scheme just like policies under any other plan. An Illustrative example is
given below:
Illustrative Example:
Example on revival by special revival scheme
1. DOC 28.05.92; SA 1,00,000; Mode Qly; P & T 14-25;
Age at entry 27 yrs; DOB 21-12-1964; Premium 985/-; Date of lapse
28-08-1994; Date of revival 28-01-1996; Terms of acceptance OR + DB2
Date of lapse : 28.08.94 Date of revival : 28.01.96
DOC : 28.05.92 Date of lapse : 28.08.94
Premium paid for 2 1/4 years. Period of lapse 1 5/12 years
Eligible for Revival under Special Revival Scheme
Date of revival : 28-01-1996
(Period for which premium was paid under earlier policy): 00-03-2
New risk Date : 28.10.1993
Age on (revised) new risk date : 28.10.1993
DOB : 21.12.1964
07.10.28 = 29 years
Premium for 29 years (under 14-25 SA 1 lakh) to be calculated.
Let the New premium be Rs. 995-00
Net amount required for revival
Iii . Difference of premium on 9 Qly @ Rs. 10/- Rs. 90.00

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i
ii. Late fee Rs. 8.50
iii. 1 Qly premium at new rate due on 28.1.96 Rs. 995.00
iiv. Special revival charge Rs. 5.00
Total Rs. 1098.50
Terms on revival Original Terms
DOC 28.10.1993 28.05.1992
Premium Rs. 995.00 Rs. 985. 00
Age at entry 29 years 27 years
Date of Maturity 28.10.2018 28.05.2017
Due dt. of last prm. 28.7.2018 28.03.2017
(h) In all cases, the terms for revival under Special Revival Scheme should be
quoted to the Policyholder and his written consent thereto should be
obtained before effecting the revival of the policy under Special Revival
Scheme and putting the necessary endorsement on the policy.
(i) Commission on the difference of premiums, if any, paid by the Policyholder,
should be allowed to the Agent on the basis of the current commission rates.
9. PAYMENT OF REVIVAL AMOUNT IN INSTALMENTS
The facility for revival of a lapsed policy on payment of arrears of premiums by
instalments spread over a specified period should be allowed only if the
policyholder is not in a position to pay the arrears of premiums in one lump sum,
there is no loan outstanding on the policy at the time of revival (the outstanding
loan, if any, may be repaid in full with interest in order to avail of the benefit of
revival under Instalment Revival Scheme) and the policy cannot be revived under
Special Revival Scheme. The payment of the arrears of premiums in instalments
will be allowed on the following terms :
(i) If the arrears of premiums are for one year or less, the facility to pay the
Revival Amount by instalments will not be allowed;

___
(ii) The Revival Amount determined as a lump sum can be paid by instalments
subject to the condition that at least a sum equal to six monthly premiums or
two quarterly premiums or one half-yearly premium or one half of the yearly
premium is paid immediately;
(iii) The balance amount required for revival can be paid by instalments over the
remaining premium due dates in the policy year current on the date of revival
and in two policy years thereafter;
The installments payable over specified period will be calculated in the
following manner :
Installments of Revival Amount
l x x
---- -----
m k ….at (m)
----
v
at 8 % rate of interest
m = The frequency of premium payment
t = Period of repayment
x = Balance of Revival amount to be paid by installments .
k = Period between the date of revival and next premium due date.
In the case of policies under which the Revival Amount is being paid by instalments
the normal paid-up and surrender values will be allowed only if the policyholder
pays up the outstanding instalments of Revival Amount in one lump sum. It would,
therefore, be necessary to place an endorsement on the policy as per the Form No.
5184. The instalment premium shown in the master records will be altered to
include the Revival Instalment. Care should be taken to ensure necessary
modifications in master records from the date the Revival Instalment will no longer
be payable.
Although, the instalments of Revival Amount contain an element of interest on
premium, the interest content of each instalment is not separated and the whole of
these instalments is treated as “Premiums”, both for the purpose of accounting and
for commission payment. In view of this, commission will be paid on the entire

___
amount of each instalment at the rate appropriate to the policy year in which the
instalment is received. However, no commission is payable on the initial payment of
the consideration amount for revival of the policy under Instalment Revival Scheme.
As regards surrender values and paid-up values, the endorsement in Form
No.5184 provides that the normal paid-up and surrender values and cash value of
bonuses will be allowed only on immediate payment of the outstanding instalments
of the Revival Amount. In practice, if the policyholder is not able to pay the
outstanding instalments in one lump sum, we may adjust the normal surrender
values and paid-up values in the following manner:
(i) Surrender Values: We may allow the normal surrender value (i.e.
surrender value calculated on the basis that the policy is in full force without
any arrears of Revival Amount) less the outstanding instalments of the
Revival Amount. For this purpose, only the arithmetical total of the
instalments outstanding on the date of surrender should be deducted.
(ii) Paid-up Value: If the paid-up value is desired then the balance of the
surrender value calculated in the manner indicated above should be
converted into an equivalent paid-up value by use of the same relationship
as exists between the unadjusted paid-up and surrender value. This would
mean that the balance surrender value will have to be divided by the
surrender value factor for unit paid-up sum assured. If the paid-up value
works out to less than Rs. 100, only the surrender value should be allowed.
(However under the policies of sum assured not less than Rs. 1,000/- issued
on or after 1.1.1976, if the paid-up value excluding vested bonus if any,
works out to less than Rs.250/-, only the surrender value should be allowed).
Note:
Policies under CDA Plan, before the deferred date and Money Back Plans under
Instalment Revival Scheme
.
An example of calculation of revival arrears, when a policy is revived under :
( As per circular Ref:Actl/2035/4)
Instalment Revival Scheme :

DOC: 28.02.2001
S A : Rs 1,00,000
Plan : 14 – 25
Mode: Half yearly
Premium: Rs. 2850/-
Date of lapse: 28.02.2004
Date of revival: 25.08.2005
The calculation of revival arrears works out to be:
(1) 3 half yearly premiums due 02/2004 to 02/2005 @ Rs 2850/- : Rs 8550/-
(2) Late fee : Rs 702/-
Total : Rs 9252/-
Less Consideration amount
(equal to minimum of one half yearly premium) : Rs 2850/-
Balance of revival arrears to be spread over : Rs 6402/-
Date of lapse : 28.02.2004
Date of Revival : 25.08.2005
New premium due date : 28.08.2005
Policy anniversary : 28.02 every year
So the balance of revival arrears will be recovered along with the usual
premium due under the policy from 28.08.2005 to 28.02.2007 (both
inclusive) i.e. 4 half yearly premiums in this case.
(1) Total balance to be spread over : Rs. 6402/-.
(2) Factor ( 2 years Hly, i.e. m=2, t=2 & k=0) : 26.46
Then, the installment will be 6402 X 26.46/100 = Rs 1694 plus


__
Usual premium = Rs 2850
Then revised premium = Rs 4544/-
10. MEDICAL REPORT, A CONFIDENTIAL DOCUMENT
The Medical Report submitted to the Corporation by a Medical
Examiner is a Confidential document between the Corporation and the
Medical Examiner. This being so, the contents of a Medical Report must not
be disclosed to any third person under any circumstances.
11. SOME SPECIAL POINTS REGARDING ADVERSE CHANGE IN PLACE OF
RESIDENCE AND PERSONAL HISTORY
The Clause about revival contained in the privileges as set out at the back of the
Corporation’s Policies, provides that a Policy may be revived on production, to the
satisfaction of the Corporation, of an approved Medical Report, where necessary,
at the Assured’s expense, regarding his health and habits and of evidence to show
that there has been no adverse change in Personal or Family History or occupation
and on payment of premium in arrears with interest. The following points may be
noted in this connection.
(i) There is no restriction on revival of a policy due to adverse change in the
Life Assured’s place of residence. Consequently, if there is any adverse
change in the assured’s place of residence, no fresh restrictions can be
placed on the Policy at the time of revival.
(ii) If a criminal charge has been preferred against an assured and a criminal
case is pending against him, that can be regarded as an adverse change in
his Personal History which will have to be taken into account for
consideration of revival of his policy. The reason for this is that if, on disposal
of the Criminal case against him, the life assured is sentenced to
imprisonment his health is likely to deteriorate. In view of this, revival of the
policy may not be considered until the criminal case against the assured is
disposed of and either he is held innocent of the charge or the punishment
imposed is nominal. The revival however, should not be held over if the
offence alleged against the assured is of a trivial nature, such as, for
instance, violation of a traffic regulation, or where the punishment on
conviction for the offence can be of a nominal fine only. It is not practicable
to lay down any strict rules regarding the cases of offences in which revival
should be postponed due to adverse Personal History of this nature, and
each case will have to be considered on its merits. If the Branch Office is in
doubt the matter may be referred to the Divisional Office.

__ _
(iii) Where, therefore, a request for revival of a Policy is received and it has
come to the knowledge of the B.O. that a criminal case is pending against
the assured, he should first be requested to produce evidence to show that
there has been no adverse change in his Personal History (without referring
to the criminal charge) and if he mentions the fact about the criminal case
pending against him, the matter should be considered further.
(iv) What is stated in the preceding two paragraphs will apply to policies issued
by the Corporation and such of the policies of I.H.O. Units as contain a
clause about revival which specifically provides for revival on production of
the proof by the Policyholder to the satisfaction of the insurer, inter alia, of
evidence to show that there has been no adverse change in the Personal
History of the assured. Where there is no specific provision in the policy
contract requiring production of such evidence, revival cannot be refused on
the ground of such adverse change in the Personal History.
(v) If an assured has been adjudicated insolvent, that may be regarded as an
adverse change in his Personal History. Moreover, if an assured is insolvent,
he is incapacitated from entering into a contract for revival. In view of this,
revival of a policy cannot be allowed in such a case until the assured has
been discharge from his insolvency and he produces an Order of Discharge
from a competent court and also a letter from the Official Assignee or Official
Receiver, as the case may be, to the effect that the latter does not claim any
interest in the policy.
.
12. MEDICAL FEE CONCESSION
(i) Corporation offers Medical Fee concession to Policyholders, for revival. The
Life Assured is required to pay the Medical Fee to the Medical Examiner
directly in the first instance. The refund or the credit of the Medical Fee may
be allowed to the assured only if the following conditions are satisfied:
(a) The Policy has not lapsed within one year of its inception;
(b) This concession of refund of Medical Fee has been accorded to the
Policyholder only once before, and
(c) The revival of the Policy is approved and effected.
(ii) Scale of maximum Medical fees refundable is as applicable to new proposals.
The same scale of fees will apply to each of the Reports under a Joint
Life policy. No additional fee will be paid where a re-check of measurement
and weight only is called for, from the same or from another medical
examiner. Medical fees in case of revival under Tables 43, 52, 58, Bima

___
Kiran (111) & Bima Sandesh (94) Plans, is to be borne by the Life
Assured only and is not to be reimbursed.
Fees for Special Reports, if required, will have to be borne by the
Policyholder.
13. FORMS OF PERSONAL STATEMENT REGARDING HEALTH
On Medical basis:
(a) Where revival of a lapsed policy is to be considered on the strength of a
medical report, the Personal Statement Regarding Health to be completed
by the Proposer will be as per Form 680.
(b) Where revival is to be considered on the strength of a medical report
submitted in connection with revival of another policy on the same life, the
forms of Personal Statement regarding Health to be completed by the
Proposer will be as per Form No. 680.
(c) Where revival is to be considered of:
(i) A Children’s Deferred Assurance Policy before its adoption by or
vesting in the life assured, if the unexpired deferment period at the
time of revival of the Policy is less than 10 years, or
(ii) A Policy on the life of another which has not been absolutely assigned
in fever of the life assured or which has not vested in the life assured,
the form of Personal Statement Regarding Health to be completed
by both the Proposer and the life Assured will be as per Form No.
700.
(d) In case of policies on joint lives an additional form of joint declaration (Form
No. 5209) duly completed by the lives assured should be obtained, along
with the Personal Statements regarding Health to be completed by each of
the lives assured.
Where revival of a C.D.A. policy is sought before its adoption by/vesting in
the life assured, but after the death of the Proposer, ascertain all the heirs of the

Proposer (just as is done while waiving legal evidence of title in cases of death
claims) and then obtain an application for revival of the policy duly signed by all the
heirs. The declaration below the Personal Statement Form No. 700 should also be
got signed by all the heirs of the Proposer. If any of the heirs are minors, the
Proposer’s widow, failing whom the eldest son should sign the application as well
as the declaration for self and for and on behalf of the minors. In such cases, the
declaration at the foot of Form No.700 should be altered to read as follows, before
it is issued:
We........................................................................the heirs
of………………………….. ....................................... the Proposer, do hereby
declare that the foregoing statements and answers made by the life assured are
true in every particular, and agree and declare that these statements and these
declarations along with the statements and declarations made by the Proposer at
the time of Proposal for insurance shall be the basis of the contract of revival of the
lapsed policy between us and Life Insurance Corporation of India, and that if any
untrue averment be contained therein, the said contract shall be absolutely null and
void and all moneys which shall have been paid in respect thereof shall stand
forfeited to the Corporation.
On Non-medical basis:
(a) Where revival of the policy is to be considered on non-medical basis, the
Personal Statement regarding Health to be completed by the proposer will
be as per Form No. 680.
(b) Where revival is to be considered of a C.D.A. policy before its adoption
by/vesting in the life assured, if the unexpired deferment period at the time of
revival of the policy is 10 years or more the form of Personal Statement
regarding Health to be completed by the Proposer will be as per Form No.
720.
14. REVIVAL OF POLICIES UNDER SALARY SAVING SCHEME
It was our practice that when a Policy under the Salary Savings Scheme
(SSS) lapsed on account of the number of defaults being six or more, the policy
was taken out of the SSS and readmission thereto was allowed only after it had
been revived on such terms as were applicable to ordinary policies. However, the
present approved practice provides that it is not necessary to remove the policy
from SSS when it lapses and even if it remains in a lapsed condition for more than
a year. It follows that the lapsed SSS policy is to be serviced, for purpose of revival
by SSS Department and as such the policy records need not be transferred to PS

___
Department of the Servicing office, which services the ordinary policies. A lapse
intimation should invariably be sent to the policyholder when a policy lapses. If a
policy has lapsed or become paid-up for a reduced Sum Assured the SSS
Department must advise the DP Department for effecting necessary movements
and also make necessary entries in the individual policy registers. Similar action
should also be taken in the case of revival effected by the SSS Department.
The following rules are applicable for the collection of arrears of premium required
for reviving lapsed SSS policies:
(a) Arrears may be collected at SSS-rates only and not at enhanced rates of
premiums with the addition of monthly extra, provided the policyholder
continues to remain in the service of the Employer and the monthly premia
will continue to be received through the salary of the employee after the
revival is effected.
(b) If the policy is revived within one year from the date of lapse the interest on
arrears of premium should be charged, as per our usual current practice, on
the overdue installments of premium at the SSS-rate.
(c) If the policy continued in lapsed condition for one year or more, interest
should be charged on the arrears of premium as if all the SSS monthly
installments of the first 12 months fell due on the first defaulting month and
thereafter as if all the arrears of premium at SSS rate fell due in the first
month for next 12 months or part thereof.
For example, if the date of first default is March 1993 and the premium
installment is Rs. 50/- interest is to be charged on Rs. 600/- (total of the
installments for the period March 1993 to February 1994) from March 1993 till the
date of collection. For March 1994 premium and onwards interest is chargeable
similarly for next 12 months if already over or part thereof assuming all the
installments fell due in March 1994.
The total of the overdue monthly installments at the SSS rate along with
interest calculated in the above manner may be collected for revival of the SSS
policy provided that after revival the policy will continue to remain under SSS. If,
however, the policyholder has left the service of the employer and premiums are
not going to be paid through deduction form salary after revival, then in such cases
the policy should be transferred to ordinary group and the revival arrears should be
collected charging interest on the overdue installments at monthly increased rate of
premium as per the SSS Endorsement.

15. UNDERWRITING RULES FOR REVIVAL
(i) The rules prescribed for underwriting new proposals should be applied to
Revival and Reinstatement of Policies. New Rules of underwriting should not
be in conflict with Policy conditions.
(ii) The revival should be on the existing terms only even if a new proposal on the
life could be underwritten more liberally.
(iii) Where revival requires a higher rating than that of original acceptance, such
higher ratings should be imposed on the basis of (1) the age of the assured
on the date of underwriting, (2) the amount to be revived on the date of
lapse, and (3) the unexpired period of risk on the date of underwriting. After
arriving at the actual extra per annum for the amount to be revived on the
date of lapse, the extra so derived should be distributed over the whole of
the original sum assured and the proportionate extra per thousand of original
sum assured should be quoted to the policyholder.
Illustrative Example :
Date of commencement : 10.04.1993
Sum Assured : Rs. 15,000
Plan and Term : 14-15
Mode : yly
Extra to be charged as on the date of underwriting -
Rs. 4 per 1000. S.A.
FUP : 10.04.98
Sum to be Revived = Sum Assured-Paid up value
= 15,000-5000
= Rs. 10,000
Extra for Sum to be revived = 10,000/1000 x 4
= Rs. 40/-
Extra for the total Sum Assured = 40/15 = Rs. 2.70
25

___
The above extra of Rs. 2.70 is to be charged for the unexpired term of the policy
i.e. from 10.4.1998 to 10.4.2008.
In case of Jeevan Surabhi policies, the premium paying term is limited and there is
increasing cover over the duration of policies. Due to this the pro-rata method is
not suitable for application to Jeevan Surabhi pols. For extra premium to be
charged refer C.O. circular Ref. Acts/1690/& dtd. 29th Sept. 1999.
(iv) Where the extra charged for revival as arrived at, on the basis referred to in
the concluding portion of (iii) above is higher by not more than 50 paise per
thousand per annum than the original extra charged under the policy, the
original extra may be retained. Where, however, no extra was charged under
the original policy because such extra was less than Rs. 1.50%, then the
actual extra for revival should be imposed if it comes to the level of Rs. 1.50
or more, although the difference between the original rating (which was not
charged because it was less than Rs. 1.50) and the rating arrived at for
revival is 50 paise or less.
16. CALCULATION OF REVIVALS CHARGES.
(1) Revival Charges will be arrived at, as follows:
After six months of the due date of first unpaid premium, interest as per the
Specified rates will be required compounding half-yearly.
(2) Rate of Interest to be shown in case of Policy revived under Ordinary and Special
Revival Schemes:
(a) As a fresh Policy is not issued under Ordinary Revival Scheme, the rate of
interest in respect of Policies revived under Ordinary Revival Scheme
remain unaltered. In respect of Special Revival Scheme, however, the
prevalent rate of interest should be applied to all Policies which are which
are revived irrespective of the new date of commencement, though no new
policy is issued and only endorsement with amended Policy Conditions is
put on Policy consequent upon the revision of the rate of interest. Prior
consent of the Policyholders to incorporate the new Policy Conditions should
be called for along with other requirements for revival of the Policy under
Special Scheme.
(b) Rate of interest to be applied in case of Policies revived under Instalment
Revival Scheme:
Where a Policy is to be revived under Instalment Revival Scheme (i.e. where
the Revival Amount is to be paid by instalments), the interest on the arrears of

premia should be charged at the rate specified in the Policy Contract. However,
while spreading the Revival Amount for paying the same by instalments, the
prevalent rate of interest should be employed. When an enquiry for revival
quotation is received from a Policyholder, the revival charges should normally be
quoted as at the expiry of one month from the date on which the quotation is given.
If any amount is in deposit, allowance for interest thereon should be made while
calculating revival charges.
17. IRREGULARITIES ON THE PART OF MEDICAL EXAMINERS
If, in the course of consideration of revival of a Policy, it is found that the
Medical Examiner who examined the life assured for such or previous revival or the
Medical Examiner who examined the assured at the time of his proposal for
assurance, had failed to discharge his duties properly, the facts of the irregularities
committed by the Medical Examiner concerned should be reported to the Medical
Section of N.B. Department to enable them to decide what action is necessary to
be taken against the Medical Examiner.
Note:
Where any evidence of health is received for consideration of revival of a Policy but
the final decision regarding revival cannot be taken pending reply to some
reference to a party other than the Life Assured, such as, the Medical Examiner,
any Agent, etc., it is necessary to see that the reply to such reference is duly
received.
18. IMPORTANT POINTS.
(a) Asha Deep Policy (T-110) can be revived as per present practice.
However for policies revived under this plan, lien condition should be
made applicable for a period of one year from the date of revival of the
policy.
(b) A lapsed policy under Convertible Term Assurance (T-58) may be
revived during the life time of the Life Assured but before the expiry of
a period of two years from the due date of the FUP on the usual terms.
(c) Under Bima Kiran policies, if the policy lapses during the first five
years, full S.A. should be taken as the Sum at risk.
(d) Concessions to Defence Personnel: Defence Personnel may be given
the following concessions regarding revival of their policies:

___
(i) Waiver of evidence of health like DGH, Special reports etc.in respect
of all lapsed policies with a duration of lapse of 3 years or less,
irrespective of the number of instalments of premium paid.
(ii) Waiver of interest on arrears of premium if the delay is not more than
12 months from the date of FUP and waiver of interest upto 50%
where the delay is more than 12 months from the date of FUP.
19. REVIVALS AT A GLANCE
--------------------------------------------------------------------------------------------------------------
Policies eligible for Revival Requirements
------------------------------------------------------------------------------------------------------------------------
A.
(i) Within 60 days from FUP
(Ii) Within six months from FUP
(iiI) In the last year of maturity, under Endowment
type of Policies.
(iv) Pure Endowment & Deferred Annuity including
Jeevan Dhara, Jeevan Suraksha (w/o life cover) &
Jeevan Suraksha (with life cover) after the expiry
of 2/3rd of the deferment period.
(v) Within 12 months of FUP, provided premiums have
been paid for at least 5 years except under Bima Arrears of
Sandesh, Bima Kiran, Temporary Assurance, Premium
Convertible Term Assurance, CDA policies (only with interest
after the risk has commenced).
(vi) Within 3 years of FUP provided two years premium
have been paid under Jana Raksha (T-87 & 91) &
Jeevan Sneha Policies (T-128).

_ _
B.
(i) Within seventh month from FUP, excluding high risk
Plans viz. Jeevan Surabhi, Bima Kiran, Bima Sandesh,
Jeevan Saathi, Jeevan Mitra, Jeevan Griha, Jeevan
Sukanya, Jeevan Asha I&II, Asha Deep & Asha Deep II
Anmol Jeevan (T-153) & Anmol Jeevan-I (T-164)
provided the original policy was issued at the tabular
rate or if the policy was issued, or subsequently revived
with an extra, such extra was due to occupation or sex
only, there is no adverse information in record & in the
DGH submitted for revival ,Age of LA should be less
than 61.
(ii) Within one year of FUP provided Sum to be revived DGH &
is Rs. 10,000 (5,000) under Multipurpose Plan, Arrears of
excluding T-43,58,94,111, subject to conditions. Prem. with
Interest
(iii) In the penultimate year of maturity under ordinary
Endowment Policy.
(iv) Within 12 months of maturity under Anticipated
Endowment Policy, Age of LA should be less than 61.
(v) After 12 months but within 18 months of FUP, provided
the premiums have been paid for 10 years or half of the
Policy term, whichever is more (Age of LA less than 61 )
except under BimaSandesh, Bima Kiran,
Temporary Assurance and Convertible Term Assurance.
(vi) If the policy is eligible to be revived under NMG/NMS.
(vii) Before the Commencement of risk, or if the deferment
period is more than 10 years, under T-102, 109, 113.
C.
Policies that cannot be revived as in A or B above. Medical Report
with Special
Reports, if
any, DGH &
Arrears