Revival of lapsed policies is one of the items referred to
in the ‘Conditions and privileges’ of a policy. A lapsed policy may be allowed
to be revived during the life time of the life assured and before the date of
maturity if the period of lapse is within five years. This five year period
varies from company to company. For considering the revival the insurer may
call for proof of continued good health of the life assured. It may be in the
form of a Declaration of Good Health [DGH] or medical reports or both and
arrears of premium with interest thereon. Revival shall take effect only after
it is approved by the insurer and the same is communicated to the policyholder.
Revival in effect is novation of a contract. The papers submitted for
consideration of revival by the insurer comes under the definition of
‘Proposal’. Life insurance companies apply Sec.45 of the Insurance Act, 1938
[Policy not to be called in question on grounds of mis-statement after two
years] from date of revival also.
Key words:
Conditions and privileges
Lapse
Revival
Proposal
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