Mr. Anup Rau, Chief Executive Officer at Reliance Life Insurance Company Limited announced the new measures taken by the company to restore the lapse insurance policies. All interest charges on due premium, medical test (subject to certain stipulation), and documents for customers are waived off. This initiative was taken by the company to bring back its customers back into the life insurance fold with all protections and benefits.
This relaxation is against the existing practice wherein a policy can be revived only after payment of applicable premium amounts along with the interest and declaration of good health by the policy holder.
Adding to the above, Mr. Rau also said that this revival facility is extended to all its products and will be made available across all Reliance Life Insurance plans and applicable to every policy holder in the company. He further added that this scheme will remain open till November 30, 2013.
Life insurance is a long term protection mechanism and its benefits are able to be seen only over a long term period only in cases where the policies is in force by way of regular payment of premium By this plan we will offer our customers to make good their lapse policy and gain all the policy advantages, he said.
Reliance Life Insurance is a joint venture between Reliance Capital, holding 74% stake in the company and Japan’s Nippon Life Insurance which holds remaining 26% shares of the company. As at 31st March 2013 the total premium amount (net of reinsurance) stood to Rs. 4,015 crores whereas new business premium amount was Rs. 1,188 crores. The profit of the company touched to Rs. 380 crores.