GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

STARRED QUESTION NO: 432
ANSWERED ON: 16.12.2016
Premium Refund on Lapsed LIC Policies
DHANANJAY BHIMRAO MAHADIK
HEENA VIJAYKUMAR GAVIT
Will the Minister of

FINANCE be pleased to state:-

(a) whether a number of Life Insurance Corporation of India (LIC) policies are considered as lapsed on account of default in payment of premium, if so, the details thereof;

(b) the norms for declaring a policy lapsed due to non-payment of further premium;

(c) if so, whether this amount is refunded to policy holder and if not, the reasons therefor; and

(d) the steps taken/proposed to be taken by the Government to refund the paid premium of policy holder despite the policy become lapsed?

ANSWER

THE FINANCE MINISTER

(a) to (d) : A Statement is laid on the Table of the House.

*****

STATEMENT REFERRED TO IN REPLY TO PART (a) TO (d) OF LOK SABHA STARRED QUESTION NUMBER *432 FOR 16th DECEMBER, 2016 REGARDING PREMIUM REFUND ON LAPSED LIC POLICIES TABLED BY SHRI DHANANJAY MAHADIK AND DR. HEENA VIJAYKUMAR GAVIT

(a) to (d): Life Insurance Corporation of India (LIC) policies are considered as lapsed when the premium due under the policy is not paid within the grace period prescribed. The lapsed policy can be revived within a period of two years from the date of lapsation by paying arrears of premium with interest and fulfillment of medical requirements, if any. The percentage of lapsed policies of LIC is around 4% on an average during the last three years. The premiums received under the lapsed policies become part of the overall Life Fund.

On all those policies which have premium paying term (PPT) of 10 years or more, where premia are paid for less than three years, then policies stand lapsed. Similarly, in all products with premium paying term of less than 10 years, where premia are paid for less than two years, then the policies stand lapsed.

However, as per Regulation 35 of the IRDA (Non-Linked Insurance Product) Regulations 2013, they acquire guaranteed surrendered value if premia are paid for at least three consecutive years with premium paying term of 10 years or more and similarly, if premia are paid for at least two consecutive years with a Premium Paying Term of less than 10 years.

Regulation 35(f) of the above said Regulations stipulates that a policy which has acquired a surrender value shall not lapse by reason of the non-payment of further premiums but shall be kept alive to the extent of the paid-up sum insured. The IRDAI (Acquisition of Surrender and Paid Up Values) Regulations, 2015 stipulate formulae for calculation of surrender value and norms for arriving at the paid up value.

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46 Comments

  1. MIR SAKIL AHMED says:

    I have a aviva lic lapsed policy ₹15000 two ppt paid. Now already lapsed. And Reliance lic paid one ppt 15000; then policy lapsed.

    I want to withdraw claim . How should solution ?

  2. Maxim Anthony Mascarenhas says:

    Sir I have jeva bhema policy,I told my agent to make my policy for me my wife n my daughter,he made but without telling me he made 2 policy for me my wife n daughter I use to pay yearly 2 time premium after sometime I came to knw I m paying for more 3 policy ,I cannot pay so much and even now I do t have job so canny pay premi for 1 policy also.now if I want my money back which I paid before can I get it back

  3. shashi sharma says:

    I PAID MY TWO TERM PRM IDIDNT GET MY YEARLY BOND CONVERTED BY MY AGENT HE TOLD HE WILL GIVE ON WORKING HRS,HE DIDNT GIVE MY BOND N MY RECEIPT PAID .WHEN I WENT TO HOME HE WAS EXPIRED.I ASKED MY RECEIPT TO SONS N BAHU THEY THREATENED ME.I GAVE COMPLAIN TO IRDAI I WANT MY MONEYBACK TO MY ACCOUNT.THEY ARE NOT LISTENING..

  4. Rajeshri says:

    Dear Sir, Can i claim money of my two policies on maturity from LIC of India even if premium paid for one or two year. Policies are 10years old. Premium paid almost Rs. 25000/-.

    1. G. Govardhana Rao says:

      Iam taken 500000/-rupees. 10years policy i paid 84 months. Monthly premium 2042/-rupees, my policy macturity date june /2021.how much rupees refunded me.

  5. Dipankar Pal says:

    How Can i claim money to my lapsed LIC policy only five installments (halfyearly)are paid from 05/10/2009 to 01/04/2012. How to get my premium amount returns.

  6. G.PRABU says:

    Respected Sir,

    I am open LIC police since 2014 and i have lic bond paper, suddendly i have some problem so stopped my premimum payment i am could not pay for lic, but i paid atleast 4 years. but now my police is lapsed so i want can i do my refund amount or continune my police, please reply me. most urgent

  7. Rajneesh Kumar says:

    Sir, I have opened a policy in ICICI Prudential life insurance annually in 2017. But I couldn’t pay another premium after 1st premium. Can I get my deposit money?

  8. Mohamed Esha says:

    Hi sir , I have taken 9 policies. 7 of my policies got lapsed, I tried to make payment through LIC customer portal app. I can’t able to do through app, kindly suggest to make inforce in all of my policies.

  9. Dharmbeer shaw says:

    Dear sir,,Mera LIC me jeevan Anand aur jivan tarun policy hai.jiska primium Maine 18 mahino Tak lagbhag 71000rs pay kar diya hai.aur aage ki primium financial problem ke karan pay nahi kar paya.to please give me suggestions how I can do it for refund my deposit money.thanks.

  10. Naresh sikka says:

    sir my self naresh kumar
    i open LIC quarterly installment and already paid 8 installment.after cant able to paid because some financial problem .
    And now not to able continue.if my deposit money refunded.

  11. SANTOSH KUMAR BHASKAR says:

    SIR MENE 2013 OR 2014 ME LIC KI THI , financial problems ke karam unhe me continue ni kar saka , in lic me mera kuch amount paid hai . ye amount mujhe kese refund hoga.

  12. Sasi Kumar says:

    How to get amount paid and discontinued due to salary expectation failed but amount needed me spend my financial needs what are processing details to my lic policy schemes .

  13. K SARAVANAN says:

    sir my self K SARAVANAN
    i open LIC yearly installment police at Rs.146828 and already paid 1 installment.after that i can’t able to paid because some financial problem .
    sir i want know how can i get my premium amount or continue the policy

  14. Chandrasinh says:

    Sir I have open a SBI Life insurance in the year 2011 but due to personal problem I could not continue that policy only 2 installment given , now whether any possibility to get my principal amount which is deposit in SBI Life . please suggest me how to get my principal amount .

    Also i have 4 nos LIC in the year 2006 but due to personal problem I could not continue that policy only 2 installment given , now whether any possibility to get my principal amount which is deposit in LIC . please suggest me how to get my principal amount

  15. Lakshmi says:

    I have no job. In lot of health issues and jobless I am struggling. And I am 47 years.My policies lapsed 5 years back only. Kindly arrange for the repayment of policies amount

  16. Rashmitha RP says:

    i have 3 bonds with me which is lapse before 4 year i request you to suggest for get back the amount where we have spend it to my father heath purposes kindly do the needful.

  17. AFAJ UDDIN MAZUMDER says:

    Sir I have open a SBI Life insurance in the year 2009 but due to personal problem I could not continue that policy only 2 installment given , now whether any possibility to get my principal amount which is deposit in LIC . please suggest me how to get my principal amount .

    Sir I have open a LIC in the year 1998 but due to personal problem I could not continue that policy only 2 installment given , now whether any possibility to get my principal amount which is deposit in LIC . please suggest me how to get my principal amount

  18. Shriram says:

    I have paid the premium for Shriram Life Insurance policy and want to cancel my policy. If I do not pay the next installment my policy would be lapsed. I want to get the refund of my premium paid. Kindly help.

  19. dr lokesh gupta says:

    Dear sir I took 2 policies of lic in 2007 money plus for 20 premiums but I deposited only 6 premiums till 2013 and after it no premium was deposited today I checked its status then it is foreclosed since 2015 what should I do

  20. paras khanna says:

    Dear All,

    I had taken a pension plan policy no.314392676 of LIC in 2011 of premium Rs.10,928/ half yearly,I had paid 5 installments of the policy but unfortunately due to some medical reason my economic condition got worse and I am unable to continue this policy,last payment paid till 2013.
    Now I want to surrender my policy to get money,kindly guide me for the same.

  21. Tapas Mohanto says:

    Dear Dir,
    I beg state that I am Tapas Mohanto policy is lapesed very few years ago due to my heart blockage treatement at present i am already 15000 to 20000 premium of my name and my two son name. But i unable to pay insurance premium due to very low economic condition and my heeart medicine not purchase for this position

  22. Megha Gupta says:

    Sir I continued my policy for 1 year and have paid 4 premiums of 20050/-. But am unable to continue the policy due to financial problems. Can I get the premium refunded.. Please help me with the procedure

  23. Lakhwinder Kumar says:

    Sir I have pail only one aviva life insurance premium of INR 100000, further I couldn’t be able to pay/continue due to financial crisis, please let me know whether I get refund from the Aviva life insurance company,

  24. Lakhwinder Kumar says:

    Sir I have pail only one Aviva life premium of INR 100000, further I couldn’t be able to pay/continue due to financial crisis, please let me know whether I get refund from the Aviva life insurance company,

  25. Karpagam says:

    Sir, I bought kotak life insurance premium of 40000 .on 2017 November. I couldn’t renew next year that is 2018 November due to unexpected financial problems. Could I get the first premium refund in any way as I am senior citizen.

  26. Bharath says:

    Dear Sir,
    I have paid 5 times (2 and haif year) lic payments around before 2015. after that i did not continue the policy due to some personal issues.
    how can i get my paid policy amount?
    need your valuable suggestion it will help to me.
    Bharath

  27. bharathi.m.s says:

    Sir in 2003 i started one policy, upto two and half year i paid, then dueto financial problems i discontinued, now policy has matured, how can i get the paid policy amount pls reply

  28. dvrao says:

    we have Gratuity policy with LIC since long up to 1998 ,in the year 1998 new company has taken over the old company .After taken over the company we are not renewed the policy with LIC and we have separate Trust.Since 1998 on wards paid Gratuity amount through our trust only to the employees.
    Finally in the year 2012 Nov our company has been closed and we paid all the liablity to the employees under Dy. Commissioner of Labour,visakhapatanam has been cleared on 22.05.2013.
    whatever paid the Gratuity premie amount with LIC so we have to get back the amount from LIC,in this connection we approached LIC ,as per their information asked us to sibmitt all the papers
    except Income tax dept clearance certificate.in view of the above we approached IT dept ,they said our pociy has been closed in the year 1998 so they will not issued IT clearance certificate.
    with out IT clearance certificate LiC of India will not release the refund amount .
    In this connection please give your suggestion and how approach to get the amount from LIC

  29. Dr Hassain Dastagir says:

    i was abroad , i have paid continuously premium of lic for two years then due to financial problems , i have discontinued, now the policy is matured , can i get the policy premium paid from LIC, which is with LIC

  30. dinesh R sharma says:

    sir my self dinesh sharma
    i open LIC yearly installment police at Rs.15600 and already paid 2 installment.after 3 installment i cant able to paid because some financial problem .
    sir i want know how can i gate my submitted many or any processes to continue this police.

  31. Kuppi Bai Ranganathan says:

    Dear Sir,
    My son R Sathyanarayab < 45 yrs Male Illitreate Guy residing in Tiruninravur, who paid for Kotak Mahindra Life Insurance the first premium of Rs 25000/- per year in very difficult situation. He is earning only Rs 8000/-per month unable to pay further premium after a year now , and went ti Kotak Mahindra Insurance , Ambathur, told regret their inability to refund the first premius. Now Sri Vijayan Sir< the Chairman of Esteemed Concern IRDA ahelped us to get back the unrefundable premium holding with Life Insurance companies.As a Mother I am reuesting you to drop a line reply as how to procedd for further to get back the paied first premium amount of Rs 25000/- fr0m Kotak Mahindra . he is very poor n innocent illiterate and unknowing all those things of the difficulies in paying further premium. as per the agent talk only he paid & joined . I am 66yrs old Mother Seeking your valuable guidance in theis regard to get nack the amount .
    please do the needful sir,
    Thanking you and awaiting for your favourable reply to my e-mail Id [email protected]
    Kuppi Bai Ranganathan

  32. Danish says:

    Sir my dad have done 2 policy one jevan ananad other jevan shree one 2lac 50thousand other 5lacs from 2004 he started paying anually 70thousand in 2012 he get in depression so we had stop payment
    In 2014 we need to know that bound is in West bengal financial corporation morgade from where my dad took loan so they had adjustest in bond as my dad business fail
    I want to know that shall I get my bond back for conninoue by paying them cash where we given to adjust in 2014 due to business fail
    I want to know that it is old bond my dad condition get bad more wen he thinking about that saving so many yeas
    I am from kolkata I want to know how can I replace that bound bcoz it’s 15yrs maturity
    If I pay cash then where shall I need to ask and if I repay bond premium from 2012 then I can do but shall that bond exist or not

  33. Loganathan says:

    Sir I have pail only one life insurance premium of INR 15675, further I couldn’t be able to pay/continue due to financial crisis, please let me know whether I get refund from the Exide life insurance company,

  34. Shahid says:

    Dear sir Maine LIC me 20yrs Ka plan liya tha aur Maine isme 4 yes tk premium bhara but iske bad me premium nhi Bhar paya ab ye policy lapse ho gyi hai kya ab ye chalu ho sakti h ya nhi aagar yes to to Kaise ya mujhe refund mil Sakta h ya nhi.plzzz sir Mera margdashan kre….. …………….. lapse hone Ka reason ye h ki Mai ek student hi aur MERI earn Ka koi source nhi hai…… Thank you sir

  35. Gautam Basak says:

    Sir my 4 pic policy was lapse due to financial hardships,now I wish to surrender my those 4 policies
    Pl give me the guidelines who can I surrender it.

  36. P.K.Sathyanathan says:

    Dear Sir,
    I am herewith want to know about two of my LIC policies which had got lapsed 12years before and paid only less than two years,since I have lots of problems on medical issues is it possible to get encashment of those policies kindly I give me the feedback for this issue which will be helpful for me.thank you and regards
    P.k.sathyanathan

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