What is the Free Look Period?
The policyholder has 15 days from the date of receipt of the policy to review the terms and conditions of the policy. In case he disagrees to any of the terms and conditions, then he can exercise the option to return the policy, stating the reasons for his objection. In case the policyholder exercises the free look period and returns the policy, the insurance company should refund the premium paid, after deducting the expenses incurred on medical examination and stamp duty charges. In India IRDA has made it mandatory for all insurance companies to grant 15 days free look period for health and life insurance contracts.
When will the free look period starts?
The free look period starts from the day of receipt of policy documents by the policyholder.
How do I cancel the policy during the free-look period?
If the policyholder wants to cancel the insurance policy during the free-look period, follow the below procedure –
1- Fill the free look period cancellation form and send it with the original policy documents to the insurance company’s address (mentioned in the form) or the local branch of the insurance company.
2- Or contact customer care of the insurance company and ask for cancellation process.
Please note that always send the documents within 15 days of the receipt of the policy from the insurance company and recorded post (and keep a photocopy of all the documents for future use), so that they have proper documents to support the facts.
How much of the premium paid is refunded if I cancel with in free look period?
If a person cancels an insurance policy during the free-look period, the insurance company refunds the entire premium paid after making following deductions –
a) Stamp Duty Charges
b) Charges to medical tests (if any)
In year 2009, the Insurance Regulatory and Development Authority (IRDA), directed all life insurance companies not to deduct any premium in cases where the insured decides to return it’s policy during free look period.