As per LIC India rules your agency can be reinstated. You can do business once it is reinstated.

WHO CAN BE REINSTATED
1. AGENTS TERMINATED DUE TO NON FULLFILMENT OF MBG
2. AGENTS TERMINATED DUE TO EXPIRY OF LICENCE

WHO CANNOT BE REINSTATED
1. Agents terminated on grounds of a vigilance Enquiry, Disciplinary action, early claim etc.
2. Agents who have resigned.

3. Agents whose date of termination beyond 24months.

Read more details here.