No premium during free look period, says Irda

New Delhi: The Insurance Regulatory and Development Authority, or Irda, issued a circular on Thursday directing all life insurance companies not to deduct any premium in cases where the insured decides to return its policy during free look period.

Under free look period, the insured gets 15 days period from the date of receipts of policy documents to return the policy if he or she disagrees with terms and  conditions of the policy.

The regulator on Monday also issued a draft on corporate governance guidelines for insurance companies to protect the interests of policy holders. The draft has details on governance structure, control functions, disclosures and relationship with stakeholders. In another circular, the regulator has issued a format for reconciliation of outstanding entries in the balance sheet of non-life companies, which is being currently used to meet solvency margins.