Quick Overview

LIC health insurance is discontinued, so new policies cannot be purchased anymore. Existing customers can continue renewals, but it is worth checking whether the cover is truly comprehensive or more benefit-based, with limits that may not match today’s hospital bills. If the cover feels inadequate, moving to a comprehensive hospitalization policy can be a better long-term fix. Portability helps carry forward already served waiting periods if there is no break in coverage. For alternatives, consider government-backed insurers for the PSU comfort, or stronger private insurers for broader coverage and smoother claims.

LIC equals trust for many Indians. So if someone is looking for “LIC health insurance,” they’re usually chasing that same peace of mind for medical bills.

But the key update here is that all LIC health insurance offerings have been withdrawn. 

In this article, we will walk you through why LIC discontinued health insurance, what to do if you already have an LIC policy, and what alternatives are worth considering today.

Not sure what to look for instead of LIC? Book a free call or chat on WhatsApp with a Ditto advisor.   

Why Did LIC Discontinue Health Insurance?

LIC has not shared any official reason for withdrawing these products. But if you look at how health insurance works in the real world, a few practical reasons become obvious.

1) Health insurance has Complex Operations

Health insurance is not just about selling a policy. It is about getting cashless approvals, claims processing, and hospital coordination right when someone is stressed and needs help.

2) Older offerings were not Comprehensive

LIC health plans were built around fixed benefits, not a full reimbursement of your actual hospital bill. For example, LIC’s Jeevan Arogya mentions “lump sum benefit irrespective of actual medical costs,” which feels limiting compared to comprehensive health policies.

3) Customer Expectations have Changed 

Most buyers today want one primary health policy that covers big hospital bills with few or no limits. Older benefit-style designs do not match what people expect from health insurance today.  

4) Where LIC Stands Today

LIC’s Health Plans page does not list any active health insurance products right now. What exists today is mostly in the form of critical illness riders that can be attached to LIC’s life insurance policies, and these are fixed benefit riders, not full hospitalization coverage.

5) LIC May Return

LIC has said it is in advanced talks to enter health insurance by taking a stake in a standalone health insurer, but it also clarified there is no binding agreement yet. Though LIC has not named the insurer, multiple reports suggest it may be ManipalCigna. 

What To Do if You Already Have Health Insurance from LIC?

1) Renewals Are Still Possible 

The withdrawal affects new buyers, not existing LIC health insurance customers. As long as your policy is active, you can keep it active by paying premiums and renewing it through LIC’s portal or your agent.

2) Check Your Current Coverage

Many LIC health offerings were not designed like modern comprehensive hospitalization policies. For example, LIC’s Jeevan Arogya caps day care procedures at 3 per policy year and 24 over the entire cover period, per insured person. So check your policy for limits like room rent caps, copays, waiting periods, and whether payouts match actual hospital bills.

3) Consider Porting for Comprehensive Coverage

If your LIC health cover feels limited for today’s hospital costs, consider switching to a more comprehensive option. While porting, the served waiting periods and benefits like the moratorium period are carried forward as per portability rules, as long as there is no break in coverage. But remember to share your full medical history when you switch.

CTA

When people look for LIC health insurance, they probably want a reliable government-backed insurer with a strong track record. Below are the top government-backed insurers to consider.

InsurerClaim Settlement Ratio (Avg FY 2022-25)Complaints Volume per 10k Claims (Avg FY 2022-25)
New India Assurance98.91%5.04
United India93.79%12.75
National 94.61%30.13
Oriental93.55%7.33

Government-backed is one approach, but reliability is not only about ownership. After reviewing a wide set of policies and how they work in real claim situations, the next table lists our top options across the market.

InsurerClaim Settlement Ratio (Avg FY 2022-25)Complaints Volume per 10k Claims (Avg FY 2022-25)
HDFC Ergo96.71%9.28
Bajaj General96.77%3.06
Aditya Birla95.81%18.67
Care Health93.12%42
Niva Bupa91.61%42.85

Why Choose Ditto for Health Insurance?

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Pallavi below love us:

LIC Health Insurance
    • No-Spam & No Salesmen
    • Rated 4.9/5 on Google Reviews by 15,000+ happy customers
    • Backed by Zerodha
    • Dedicated Claim Support Team
    • 100% Free Consultation

Confused about the right insurance? Speak to Ditto’s certified advisors for free, unbiased guidance. Book your call or chat on WhatsApp with us now!

Ditto’s Take on LIC Health Insurance

LIC health insurance is discontinued, so it is not a real option for new buyers today. If an LIC health policy is already active and renewable, it can be kept as a secondary layer, but it should not be the only cover since the benefit-based plans feel limited.

What we would recommend:

    • Pick a comprehensive health policy from an insurer with strong claim servicing and low complaint rates.
    • Judge it on real terms like room rent limits, copay, waiting periods, and restoration, not brand familiarity.
    • If LIC returns via a standalone health insurer, wait until the products are live and tested before considering it as an option.

Frequently Asked Questions

How to file a claim under an old LIC health insurance policy that is discontinued?

A discontinued policy can still be serviced if it is active. The simplest approach is to use the claims process mentioned in the policy wording and submit the required documents through LIC’s health claims route or via your agent.

Does withdrawal of LIC health insurance affect cashless availability or claim payout in any way?

Withdrawal mainly affects new sales, not the benefits promised to existing policyholders. If the policy is active, claims should still be processed as per the terms and conditions of the policy, subject to the usual documentation and eligibility rules.

How much coverage is “enough” when replacing an old LIC health policy?

A practical way to decide is to estimate the cost of a serious hospitalization in the city, then pick a sum insured that would cover a large bill without relying on multiple add-ons. For many families, starting with a ₹15-25L solid base cover and adding more later if required is advisable. 

If switching to a new insurer, what should be disclosed to avoid claim issues later?

Disclose everything that could matter medically, even if it feels minor: past diagnoses, ongoing conditions, regular medicines, prior surgeries, and any tests or consultations. Also, share previous policy details and claims history so the insurer can underwrite correctly.

If the LIC health policy is benefit-based, what gaps usually show up during hospitalization?

Benefit-based policies usually pay a fixed amount for specific events, so the payout can fall short if the actual hospital bill is higher. They also often come with caps on benefits like the number of procedures, hospital cash days, or room-related limits, which can reduce how useful the cover feels during a real hospitalization.

Last updated on: