BackInsurance: How to avail the free-look period benefit
If you are not satisfied with your life/health insurance policy, IRDA allows you to return the policy within a specific period called ‘free-look period’
PremiumAre you satisfied with your life/health insurance policy that you recently bought? If not, Insurance Regulatory and Development Authority (IRDA) provides you a provision that allows you to return the policy within a specific period called ‘free-look period.’ This means that from the time you receive your policy documents, you get 15 days (even some companies provide 30 days from the date of dispatch) to review it, and if you are not satisfied, you can return the policy to the insurer.
While in the case of life insurance, the IRDA provisions provide free-look period for all policies, however, in the health insurance policies, a term of at least three years is a must. The free look period will be applicable at the inception of the policy.
The IRDA provisions further give an additional 15 days extension (total 30 days) in the free-look period in case of electronic policies and policies sourced through distance mode from the date of receipt of the policy to return the same if not acceptable.
If you have not made any claim during the free look period and you want to return the policy, the insurer will refund the paid premiums after deducting stamp duty charges, the proportionate risk premium for the coverage period, and costs for any medical check-ups.
In respect of unit-linked policy, the insurer shall also be entitled to repurchase the unit at the price of the units as on the date of the return of the policy, the IRDA provisions add.
Request for cancelation
If you want to avail the free-look period benefit, you can call customer care or send an email to the insurer to initiate the policy return. You will have to submit the essential original documents to complete the cancellation process.
The insurance provider will send an endorsement and refund the premium within 7 working days
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