IRDA (Insurance Regulatory and Development Authority) has included a provision in order to protect the interest of customers, in which customers can return their health insurance policies if they are not satisfied, and receive a refund for the same. As per the regulations of IRDA, a free look period is granted to the policyholder, in which they get a chance to follow the terms and conditions stated in the health insurance policy to evaluate if the policy is really beneficial for them or not. Mostly a free look period is granted for 15 days, during which policyholder may request for cancellation of the policy.
Following are the important details regarding the free look period:
What is Free Look Period in Health Insurance?
Free Look period is an excellent opportunity for the insured to return the policy if the policy does not meet their requirements. With the help of health insurance premium calculator, you can calculate the premium online with ease. All kind of health insurance policies have a free look period of 15 days. However, some insurance companies may extend the period up to 30 days.
Let us know how this clause works in a health insurance policy:
Time Limit to Avail the Benefit
The benefits under the free look period clause can be availed15 days from receiving the policy documents. The starting date of the policy needs approval to initiate the process, in case you are willing to return the policy.
Request to cancel the Policy
To avail the free look period benefit, you need to submit a written request to the insurer. It can be done by filling an online form, which can be downloaded from the official website of the insurance company.
To cancel an insurance policy within the free look period, you need to submit certain details such as the receiving date of the policy document, agent information if you have bought from an agent, cancellation reason, etc. A valid bank account is required for the refund of the premium of your health insurance plan.
Documentation to Cancel the Policy
To complete the cancellation process of the policy, submission of original documents is essential. The receipt of first paid premium and a cancelled cheque for refund is required to be submitted.
Don’t Expect a Full Refund
In case of policy cancellation, the insurance provider refunds the premiums after charging a minimal amount, which includes:
Stamp duty charges
The risk premium for the coverage period
Incurred expenses paid by the insurer towards a medical test.
Following is the Stepwise Procedure to Cancel a Policy within the Free-look Period:
– For cancellation of the policy, make a request to the insurer, contact the customer care and write to them.
– The insurance company will send an endorsement and the premium will be refunded within 7 working days.
– The most vital thing to remember is you can only cancel the policy during the free look period.
The Final Word
Free Look period is designed to keep the interest of the customers. Thus, to make the fullest use of this term, you must know how it works and how to go with the process. In addition, always compare health insurance plans to select the best one as per your needs and requirements. Peruse the policy documents to understand the insurance claim process, coverage to make the most out of your policy.