Friday, February 12, 2010

Late free or fine for delayed payment of premium in LIC

If the premium amount is not paid on the due date then the policy is considered to be a lapsed policy. However the policy can be revived within six months of the policy lapsation paying a small amount as the interest.
So how the delayed payment interest is calculated?
LIC considers the delay of 1 month 14 days as one month. 1 month 15 days to 2 months 14 days as 2 months and like that. A delay of just 15 days will also be considered as a delay of one month. And the fine will be charged at the rate of 8%.







For example a person has to pay a premium of Rs. 2000/- bu he makes a delay of more than 2 months 14 days in paying the premium then the delay will be considered as a 3 months delay. The late fee rate for Rs. 1% premium for 3 months at the rate of 8% is 0.01999 Therefore the late fee he has to pay is 2000 x 0.01999 = Rs. 39.98/-. The total amount he has to pay is 2039.98.

 
Related Posts:
Stumble
Delicious
Technorati
Twitter
Facebook

34 comments:

  1. Its a good blog for visitor that want more about LIC. I allredy bookmark this blog. If you want to know more abut LIC please visit us on: http://lic-premium.blogspot.com/

    ReplyDelete
  2. Can we make payments to LIC from USA?

    ReplyDelete
  3. Sure. You can make payment from anywhere in the world. For more details see

    http://licinsuranceguide.blogspot.com/2009/12/modes-of-insurance-payment-in-lic-of.html

    ReplyDelete
  4. sir,
    my half yearly premium is 30000 & if i have not paid premium in given period than what will be the late fee or panellity

    ReplyDelete
  5. The late fee rate for Rs. 1% premium for 3 months at the rate of 8% is 0.01999 Therefore the late fee he has to pay is 2000 x 0.01999 = Rs. 39.98/-
    What does this line mean?
    very confusing!!

    ReplyDelete
  6. But, how it comes the 0.01999
    i want the explanation on it.

    ReplyDelete
  7. I have to premium for 2 installments
    1st one due date is 23/06/2010
    & 2nd due date is 23/12/2010
    My premium amount Rs. 8188/-
    please tel me the interest for above 2 payments.

    ReplyDelete
  8. Thank you Boss . indeed a good site for LIC related queries

    ReplyDelete
  9. Sir my yearly premium is Rs 11000 which i have not paid premium from june 2011, i want to that what will be late fee

    ReplyDelete
  10. Really, i also have confusion of this late fee calculation
    ( The late fee rate for Rs. 1% premium for 3 months at the rate of 8% is 0.01999 Therefore the late fee he has to pay is 2000 x 0.01999 = Rs. 39.98/- )

    ReplyDelete
  11. The late fee rate for Rs. 1% premium for 3 months at the rate of 8% is 0.01999 Therefore the late fee he has to pay is 2000 x 0.01999 = Rs. 39.98/-. The total amount he has to pay is 2039.98.

    EXPLANATION:

    Since premium for 1 year (12 months) is 2000.
    The premium for 3 months will be (2000/12)*3 = 499.98
    The late fee will be charged: (8% of 499.98) = 39.98

    ReplyDelete
    Replies
    1. thank you for clearing that up...
      Very helpful

      Delete
    2. Very helpful post...!!!!!!! Thanks

      Delete
    3. 2000*8/100=160
      160/12=13.333
      13.333*3=39.99

      Delete
  12. Sir my half yearly premium is Rs 2495 which i have not paid premium from february 2006, i want to that what will be late fee. my thirteen installment pending.

    ReplyDelete
  13. is the late fee period includes the grace period too. i.e my pymt dues on 12-Mar-12 and grace period ends with 11-Apr-12 if my 1 mnth 15 days dues on 26-Apr or 26-May

    ReplyDelete
  14. Please tell me the calculation on the follwing

    Due date of Premium 27/01/2013 Prm 6065
    Paying date is 26/04/2013 Mode is Halfyearly

    How much would be Late fees with calculation

    and if the policy is Quaterly what would be the calculation???

    ReplyDelete
  15. Hi,

    i guess i missed the payment of lic premium. the due date was 1st April and I thought i could pay it today ie 1st of may. but i cant do it online. this is the 2nd year of my policy ie i have only paid one premium. will i lose my money? its a big sum arnd 27000. is there any way i can redress this. please do provide a response.

    ReplyDelete
  16. How do I pay premium for a policy that has not been paid for 4 premiums.can we pay with penalty?

    ReplyDelete
  17. thanks
    http://mydayspecial.blogspot.in/

    ReplyDelete
  18. Hi, I have paid my premium with 3 days in delay.. due was on 21st but i made the payment on 24th, Will this be affected in any way? what measure so i need to take if there is a problem? Please guide me

    ReplyDelete
  19. Hi, I missed my yearly premium of 60,000 to jeevan saral 165. The due date wad 23 July 2013. Now what would be the fine.

    ReplyDelete
  20. what is the procedure of calculation of late fees of half yearly mode .

    ReplyDelete
  21. sir 28.04.2013 date of premium how much fine will be these policy

    ReplyDelete
  22. Life Insurance Corporation of India (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai. So please use Indian rupees currency. Avoid other country’s currency. Please help to improve our country rupees value.

    ReplyDelete
  23. Sir,
    My yearly premium is 14298 but due date was 26/6/2013.. what is interest and How do i pay it online?

    ReplyDelete
  24. Hi, I have been praying my insurance premium for last 13 years and i have delayed my payment by about 25-27 days !! is this usually a big issue when the LIC matures ?

    ReplyDelete
  25. u write ...1 month 15 days to 2 months 14 days as 2 months but u calcuate it is as 3 month...i couldn't understand...???

    ReplyDelete
  26. i have not deposited my premium for last one year . how can i make payment for my premium amount

    ReplyDelete
  27. Dear sir because of some problems I cant able to pay my premium. Now I want to pay but 10 month delayed so what I have to do

    ReplyDelete
  28. Sir my primium is 20000 every year but I have late one month from deposit date so please reply how many pay in this condition

    ReplyDelete