LIC Health Insurance: What Health Shield and New Cancer Cover Pay

LIC health insurance now means two plans: LIC's Health Shield (Plan 907, UIN 512N369V01) and LIC's New Cancer Cover (Plan 908, UIN 512N370V01), on sale from 19 October 2026 according to LIC's press release of 13 October 2026. Both are fixed-benefit plans. They pay an amount agreed when you buy the policy, once a listed event happens, "regardless of the actual costs incurred" in the words of the Health Shield policy document. Neither pays your hospital bill. That makes them cash on top of an ordinary health policy, not a replacement for one.

LIC is a life insurer, and the claim settlement ratio quoted for it counts death claims, not health claims; the second section below explains what that means for these plans. Every plan detail here is read from LIC's own brochures, policy documents and customer information sheets, downloaded from licindia.in on 5 November 2026.

What health insurance plans does LIC sell?

LIC sells two health plans: LIC's Health Shield, a family plan that pays a fixed daily amount for hospital stays and fixed lump sums for surgeries, and LIC's New Cancer Cover, which pays fixed sums when cancer is diagnosed. They are the only two plans on LIC's Health Insurance Plans page (read 5 November 2026), and LIC's press release of 13 October 2026 says both are available to buy from 19 October 2026.

Source: LIC's sales brochures for Health Shield and New Cancer Cover, read 5 November 2026.

Two older LIC health plans are no longer sold. LIC's withdrawn-plans page lists LIC's Cancer Cover (Plan 905, UIN 512N314V03) and LIC's Arogya Rakshak (Plan 906, UIN 512N318V01) among the plans withdrawn during financial year 2024-25 (read 5 November 2026). New Cancer Cover carries its own plan number and UIN.

What is LIC's claim settlement ratio for health insurance?

LIC's 98.3% claim settlement ratio is a death-claims figure, not a health-claims one (IRDAI published data, three-year weighted average, latest available as of March 2026). It is the share of individual death claims LIC settled, counted by number of policies. It cannot tell you how LIC will handle a Health Shield or New Cancer Cover claim, and both plans have been on sale only since 19 October 2026.

LIC draws 4.57 complaints per 10,000 claims, averaged over 2022-25, and its 98.3% clears the 98% that nyvo treats as the bar for a life insurer. Use those figures to weigh a term plan from LIC against another life insurer's; our page on LIC's death claim settlement ratio shows where LIC ranks. A health insurer's ratio counts a different kind of claim, so the two cannot be set side by side.

What LIC does commit to on both plans is a service standard: 15 days to settle a health claim other than a cashless one, in each plan's customer information sheet.

How is a fixed-benefit plan different from health insurance that pays the bill?

A fixed-benefit plan pays an amount agreed in the policy when a listed event happens, whatever the hospital charged; an indemnity health policy pays the hospital bill itself, up to the sum insured. LIC's customer information sheet for Health Shield calls it a "Benefit" policy, one that "pays a fixed amount" on "the occurrence of the covered event". If the bill is twice the fixed amount, you pay the difference. If it is half, you keep the rest.

Take Health Shield with a daily benefit of ₹5,000. Its Major Surgical Benefit Sum Assured is 100 times that, ₹5 lakh. These are the amounts LIC's documents set for four events, once the relevant waiting period has passed:

Source: LIC's Health Shield sales brochure, sections 3 and 5 and the two annexures, read 5 November 2026.

On an indemnity health policy, a covered stay or surgery is paid on the hospital's bill, up to your sum insured, less whatever that policy itself deducts: a co-payment, a room rent limit, or a cap on the procedure. The two kinds of policy answer different questions. The indemnity policy answers "who pays the hospital?" The fixed-benefit plan answers "what money do I have while this is happening?" Our guide to critical illness vs health insurance makes the same distinction for lump sums paid on diagnosis.

What does LIC Health Shield pay?

LIC's Health Shield pays multiples of a daily benefit you choose, from ₹2,500 to ₹10,000 a day in steps of ₹500, for each person on the policy. A hospital stay pays the daily amount, twice that in intensive care, and surgeries and named illnesses pay extra on top. Every amount is fixed "regardless of the actual costs incurred" (Health Shield policy document, Part C, read 5 November 2026). The table shows each benefit at ₹5,000 a day.

Source: LIC's Health Shield sales brochure, sections 3 and 5, and policy document, Part C, read 5 November 2026.

Hospital Cash is paid on top of the surgery, illness and long-stay lump sums. The exception is a day-care procedure: if one is performed, no daily cash is paid even if the stay runs past 24 hours, except for maintenance dialysis and radiotherapy. At the ₹10,000 maximum daily benefit, which is a cap across all your Health Shield policies, the largest single surgical lump sum is ₹10 lakh before any No Claim Benefit.

Three more benefits are built in:

• No Claim Benefit. After every three consecutive policy years in which nobody on the policy claims, LIC adds 10% of the initial daily benefit to the daily benefit, with no ceiling. At ₹5,000 a day, three claim-free years lift it to ₹5,500, and every lump sum worked out on it rises too.
• Premium waivers. A Category 1 or 2 surgery on LIC's list waives one year's premiums for everyone on the policy. If the original principal insured dies, LIC waives all future premiums for the surviving family members and the policy carries on.
• Quick Cash. For a Category 1 or 2 surgery at one of LIC's listed network hospitals, the principal insured can ask for 50% of the surgical benefit as an advance during the stay, subject to LIC's approval. Otherwise LIC pays after the event, on proof.

Who can LIC Health Shield cover, and what does it cost?

LIC's Health Shield covers the person who buys it, the principal insured, aged 18 to 65 at entry, and can add a spouse and parents aged 18 to 65 and children from 90 days to 20 years, all in one policy. The term is 15 years with premiums paid throughout, and cover ends by age 80 for adults and 35 for children (Health Shield brochure, section 2, read 5 November 2026).

The family rules are strict. If both parents are eligible, both are covered or neither is, and the same goes for all eligible children. Anyone left out at the start cannot join later, except a spouse after marriage or a child born or adopted after the policy starts, added within 12 months while at least five years of the term remain. No family member's daily benefit can exceed the principal insured's.

LIC's sample yearly premiums for a ₹5,000 daily benefit, on a policy bought offline, are below. LIC collects any tax on top of the premium.

Source: LIC's Health Shield sales brochure, sections 12 and 21, read 5 November 2026.

Each person added pays a separate premium. LIC's example for a 35-year-old woman added to a policy whose principal insured is 40 is ₹6,357, so a 40-year-old man and his 35-year-old wife pay ₹15,803 a year between them at ₹5,000 a day each, offline and before tax. Buying online without an intermediary takes 10% off the tabular premium, and a daily benefit of ₹4,000 or more earns a fixed rebate (₹700 a year for the principal insured at ₹5,000); ask LIC whether its sample premiums already include it before you subtract it. The policy has no maturity benefit, surrender value or loan.

What waiting periods and exclusions apply to LIC Health Shield?

LIC's Health Shield pays nothing for illness in the first 90 days of each person's cover, and nothing for 23 listed conditions in the first two years, including cataract, hernia, gall stones, piles and knee replacement not caused by an accident. There is no 90-day wait for an accident. A pre-existing condition is excluded unless you disclosed it and LIC accepted it before cover began, or before a lapsed policy was revived (Health Shield policy document, Part C, conditions 9 and 10, read 5 November 2026).

The 23 conditions with the two-year wait are: adenoid or tonsil disorders, anal fistula or fissure, benign enlargement of the prostate, benign uterine disorders such as fibroids, cataract, gall stones, slip disc, piles, benign thyroid disorders, hernia, hydrocele, degenerative joint conditions, sinus disorders, kidney or urinary tract stones, varicose veins, carpal tunnel syndrome, benign breast disorders, benign ovarian disorders, gastric or duodenal ulcer, retinal disorders, knee or joint replacement not caused by an accident, osteoporosis or osteoarthritis, and chronic or end-stage kidney failure. Our guide to waiting periods explains how these clocks work on an ordinary policy.

"Pre-existing" here means a condition diagnosed by a doctor, or for which a doctor recommended or gave advice or treatment, in the 36 months before cover started. LIC's wording sets no waiting period after which an undisclosed condition becomes covered. See how to disclose a pre-existing disease before you fill in the proposal.

A lapse costs you: revive the policy more than 90 days after the first unpaid premium was due and both waits start again from the date of revival.

The exclusions most likely to matter on a claim:

• Bills before and after the stay, excluded outright.
• Pregnancy and childbirth, including caesarean section, with ectopic pregnancy the one exception.
• Stays of under 24 hours, except listed day-care procedures and the daily cash for dialysis and radiotherapy.
• Treatment outside India, and AYUSH treatment outside a government or government-recognised hospital.
• Dental and cosmetic treatment, with narrow exceptions after an accident or for medical necessity.
• Admissions for check-ups or diagnosis only, obesity, sleep disorders, infertility, hormone replacement, hazardous sports, and claims arising under the influence of alcohol or of drugs a doctor did not prescribe.

Health Shield's customer information sheet lists migration and portability as "Not Applicable", so you cannot move the policy to another insurer. And LIC's forfeiture clause says the policy is void if the proposal contained an untrue statement or withheld material information, with any claim then subject to Section 45 of the Insurance Act, 1938.

What does LIC New Cancer Cover pay?

LIC's New Cancer Cover pays 25% of the sum assured on first diagnosis of a listed early-stage cancer, and 100% on a major-stage cancer, plus 1% of the sum assured every month for the next 10 years. LIC's brochure says the amounts are fixed "irrespective of actual cost incurred", and the total across all claims is capped at 245% of the sum assured (New Cancer Cover policy document, Part C, read 5 November 2026).

Source: LIC's New Cancer Cover policy document, Part C, read 5 November 2026.

The early-stage list has six conditions: carcinoma-in-situ, early prostate cancer (T1N0M0 with a Gleason score of 2 to 6), thyroid cancer under 2 cm (T1N0M0), early bladder cancer (TaN0M0), chronic lymphocytic leukaemia at Rai stage 0 to 2, and severe cervical dysplasia reported as CIN3 on cone biopsy. Carcinoma-in-situ of the skin, melanoma-in-situ, and benign or borderline tumours are excluded. LIC's wording lists CIN3 as an early-stage cancer and, a few lines later, excludes "dysplasia, intra-epithelial neoplasia" from early-stage benefits, so ask LIC in writing how it reads the two together before you rely on that line.

A major-stage cancer is a malignant tumour that invades and destroys normal tissue, proven by histology, and includes leukaemia, lymphoma and sarcoma. Non-invasive and borderline tumours are excluded, and so are these below the stage LIC's wording sets for each: skin cancers other than melanoma that have not spread to the lymph nodes, melanoma that has not invaded beyond the outer layer of the skin, and cancers of the prostate, thyroid and bladder, gastrointestinal stromal tumours and chronic lymphocytic leukaemia.

The rules on repeat claims are tight. The early-stage benefit is paid once in the life of the policy. An early-stage claim counts only if it was diagnosed before the major-stage cancer. Once the major-stage benefit is paid, the policy ends except for the monthly income. If two cancers are diagnosed at once, LIC pays only the larger benefit.

You choose one of two options at the start and cannot change it. Level Sum Assured keeps the sum assured fixed. Increasing Sum Assured adds 10% of the basic sum assured on each of the first five policy anniversaries, so ₹50 lakh becomes ₹75 lakh from the fifth, and the increases stop after any cancer diagnosis. There is no death benefit, no maturity benefit, no surrender value and no loan.

Who can buy LIC New Cancer Cover, and what does it cost?

LIC's New Cancer Cover is sold to adults aged 18 to 65 for a term of 10 to 15 years, with premiums paid for the whole term, and the policy must end by age 75. The minimum basic sum assured falls with age, from ₹35 lakh for ages 18 to 34 to ₹15 lakh for ages 51 to 65, and the maximum basic sum assured is ₹50 lakh across all your New Cancer Cover policies, in multiples of ₹1 lakh (New Cancer Cover brochure, section 2, read 5 November 2026).

Two clocks decide whether a claim pays. A 180-day waiting period runs from the date the policy is issued or revived: if any stage of cancer occurs in that time, nothing is paid and the policy ends. And the insured must survive 7 days from the date of diagnosis, counting that day. Any cancer, precancerous condition or related condition diagnosed, or advised on or treated, in the 36 months before the policy was issued is excluded, as is any condition caused by alcohol or by drugs not taken on a doctor's direction (New Cancer Cover policy document, condition 7, read 5 November 2026).

LIC's sample yearly premiums for a ₹50 lakh basic sum assured on the Level option, bought offline and exclusive of taxes:

Source: LIC's New Cancer Cover sales brochure, section 9, read 5 November 2026. A 15-year term at 65 would run past the maximum age of 75.

On LIC's table, women pay more than men at 20, 35 and 50 and less at 60 and 65: a 35-year-old woman's premium for a 10-year term is ₹15,200 against a man's ₹8,050. The Increasing option costs more, ₹9,700 instead of ₹8,050 for that 35-year-old man. Buying online without an intermediary takes 7.5% off the tabular premium for a 10 to 14-year term and 10% for a 15-year term.

Why can an LIC health plan not replace a health policy?

An LIC health plan cannot replace an indemnity health policy because its payouts are capped in rupees and in days whatever the treatment costs, and because it leaves out much of what a hospital stay involves. Health Shield's largest surgical lump sum is ₹10 lakh at the maximum ₹10,000 daily benefit, before any No Claim Benefit, and 232 of the 263 surgeries on LIC's list pay 20% to 60% of that sum assured (Health Shield policy document, Major Surgical Benefit annexure, read 5 November 2026).

• The amount does not follow the bill. A listed surgery pays its percentage, plus the daily cash, however costly the operation.
• Only listed events earn the bigger sums. Any other surgery or illness pays by the day while you are in hospital for more than 24 hours, plus a lump sum if one stay passes 30 days.
• Days are rationed. Hospital Cash stops after 30 days in the first policy year, 90 days in each later year, and 900 days in all.
• Bills before and after the stay are excluded. See what an indemnity policy pays for pre and post-hospitalisation.
• LIC pays you, not the hospital. Benefits are paid as a lump sum on proof of the stay or surgery, apart from the Quick Cash advance to the principal insured on major surgeries at listed hospitals.
• The cover ends and cannot move. Health Shield runs 15 years, with adult cover stopping by 80; New Cancer Cover ends by 75. Neither can be ported to another insurer.

None of that makes the plans bad; it makes them a different product, best used as cash on top of an indemnity policy sized for a real hospital bill. Our guide to how much health cover you need covers the sizing.

Who might add an LIC health plan to a health policy?

An LIC health plan makes sense as a second layer for someone who already has an indemnity health policy and wants cash that arrives whatever the bill: for income lost while in hospital, for travel and a family member's stay, or for a co-payment on their own policy. For benefit-based policies, IRDAI's Master Circular on Health Insurance Business (29 May 2024, Chapter I, para 18) says policyholders "can claim from all Insurers under all policies", and nothing in the Health Shield policy document cuts LIC's payout because another insurer paid the bill.

• A self-employed person or a sole earner. Days in hospital can mean days without income. Health Shield's daily cash covers some of that, and New Cancer Cover's 1% a month for 10 years after the major-stage lump sum is closer to an income than a reimbursement.
• A family whose health policy carries a co-payment or a room rent limit. The daily cash can fund the share the policy leaves to you, and parents can join Health Shield up to age 65.
• Someone who wants a lump sum on a serious diagnosis. New Cancer Cover pays on cancer alone. A critical illness plan pays on a list of illnesses, so compare the two before choosing; our best critical illness plans sets out the options.

It does not suit anyone without an indemnity policy, who should buy that first, or anyone over 65, who cannot enter either plan.

How do you buy and claim on LIC's health plans?

You can buy LIC's Health Shield and New Cancer Cover through LIC agents, corporate agents, brokers and insurance marketing firms, or online on licindia.in, where both plans are listed on LIC's Buy Online page. Buying online without an intermediary cuts the tabular premium by 10% on Health Shield and by 7.5% to 10% on New Cancer Cover, depending on the term. Health Shield's cover starts only when LIC accepts the risk after underwriting, and New Cancer Cover's waiting period runs from the date the policy is issued.

To claim on Health Shield, tell LIC as early as possible and send the claim form with an NEFT mandate for your bank account, the discharge card showing exact admission and discharge times, any operation notes, the treating doctor's certificate and the bills. To claim on New Cancer Cover, write to the branch that services the policy with the claim form and NEFT mandate, the original policy document, the treating doctor's and hospital's certificates and the confirming tests, including histology; LIC pays once a doctor it appoints or approves confirms the diagnosis.

The plan pages hold each plan's brochure, policy document and customer information sheet: LIC's Health Shield and LIC's New Cancer Cover. The policy document is the one that decides a claim.

FAQs

Does LIC have health insurance?

Yes, two plans: LIC's Health Shield (Plan 907) and LIC's New Cancer Cover (Plan 908), on sale from 19 October 2026. Both pay fixed amounts when a listed event happens, not your hospital bill.

Is LIC Health Shield a mediclaim policy?

No. A mediclaim or indemnity policy pays your hospital bill up to the sum insured. Health Shield pays fixed amounts worked out on the daily benefit you choose, whatever the bill, so it sits on top of a mediclaim policy rather than replacing one.

What is the claim settlement ratio of LIC health insurance?

The ratio usually quoted for LIC is not a health figure. LIC's 98.3% is its individual death claim settlement ratio, by number of policies (IRDAI published data, three-year weighted average, latest available as of March 2026), and LIC's two health plans have been on sale only since 19 October 2026.

How much is the premium for LIC Health Shield?

For a ₹5,000 daily benefit bought offline, LIC's sample yearly premium is ₹7,195 for a 30-year-old man and ₹6,883 for a 30-year-old woman as principal insured, with any tax on top (Health Shield brochure, read 5 November 2026). Each family member added pays a separate premium, and buying online without an intermediary takes 10% off the tabular premium.

What is the waiting period in LIC Health Shield?

90 days for illness, with no 90-day wait after an accident, and 2 years for 23 listed conditions such as cataract, hernia and knee replacement not caused by an accident. The waits run separately for each person on the policy.

Does LIC Health Shield cover pre-existing diseases?

Only if you disclosed the condition and LIC accepted it before cover started, or before a lapsed policy was revived. Otherwise a condition diagnosed, advised on or treated in the 36 months before cover is excluded, and LIC's wording sets no waiting period after which it becomes covered.

How much does LIC New Cancer Cover pay?

25% of the sum assured for a listed early-stage cancer, and 100% for a major-stage cancer plus 1% of the sum assured every month for 10 years. On a ₹50 lakh Level Sum Assured that is ₹12.5 lakh for early stage, or ₹50 lakh plus ₹50,000 a month for major stage, with ₹1.225 crore as the most the policy pays.

Can I claim LIC Health Shield and my health insurance for the same hospital stay?

Yes. For benefit-based policies such as Health Shield, IRDAI's Master Circular on Health Insurance Business (29 May 2024, Chapter I, para 18) says policyholders can claim from all insurers under all policies when the insured event happens. LIC pays its fixed amounts regardless of the actual cost, and your health insurer pays the bill on its own terms.

Can I buy LIC health insurance online?

Yes. Both plans are on LIC's Buy Online page at licindia.in. Buying online without an agent or other intermediary takes 10% off Health Shield's tabular premium, and 7.5% (10 to 14-year terms) or 10% (15-year term) off New Cancer Cover's.

Is LIC Arogya Rakshak still available?

No. LIC's withdrawn-plans page lists LIC's Arogya Rakshak (Plan 906) and LIC's Cancer Cover (Plan 905) as withdrawn during financial year 2024-25. The plans on sale are Health Shield (Plan 907) and New Cancer Cover (Plan 908).

Does LIC Health Shield cover maternity?

No. Pregnancy, childbirth including caesarean section, medical termination and pre and post-natal care are excluded, with ectopic pregnancy as the one exception.

Related guides:

• Critical illness vs health insurance
• Waiting periods in health insurance
• How much health cover you need
• LIC's death claim settlement ratio
• How to disclose a pre-existing disease

Sources:

• LIC's Health Shield (Plan 907, UIN 512N369V01): sales brochure, policy document and customer information sheet, from LIC's Health Shield page on licindia.in, read 5 November 2026
• LIC's New Cancer Cover (Plan 908, UIN 512N370V01): sales brochure, policy document and customer information sheet, from LIC's New Cancer Cover page on licindia.in, read 5 November 2026
• LIC press release, "LIC of India introduces three New Plans", 13 October 2026
• licindia.in Health Insurance Plans, Withdrawn Plans and Buy Online pages, read 5 November 2026
• Claim settlement ratio: IRDAI published data, three-year weighted average, latest available as of March 2026; complaints per 10,000 claims, averaged over 2022-25
• IRDAI Master Circular on Health Insurance Business, 29 May 2024, Chapter I, para 18 (claims under benefit-based policies), read 5 November 2026