Demonetisation: LIC extends grace period for premium payment

Life Insurance Corporation (LIC) on Wednesday said it has extended the grace period for policyholders for payment of renewal premium in the wake of demonetisation move, which has led to a cash crunch and long queues at banks and post offices for exchanging now-invalid notes.

The government demonetised higher denomination notes of Rs 500 and Rs 1,000 from the midnight of November 8. "To ensure our policyholders do not experience difficulty in paying renewal premiums, LIC has given certain concessions," the state-run insurance behemoth said in a statement in Mumbai.

Renewal premium of policies, where grace period ends between November 9 and 30, can now be paid without penal interest if payment is made before November 30, it said.

Submission of other requirements, including a declaration of good health or medical reports, if required under such policies, is also being waived up to November 30, the statement added.