Mumbai, December 9: If you are unhappy with a policy, don’t fret. The Insurance Regulatory and Development Authority of India (IRDAI) understands the customer’s behaviour and allows a time period of certain days to review a policy and if not satisfied with the particular policy the customer has the option to cancel the policy.
What is free-look period?
A window of 15 days is given to a policyholder to review thoroughly for the option to cancel the policy. The period starts from the date of the receipt of the policy document by the policyholder.
Always check the date when you receive the policy documents and retain the envelope. Download the free-look cancellation request form.
The policyholder should clearly mention about the types of product - unit-linked or traditional products. One must mention the reason behind the cancellation of the policy and provide correct personal and bank account details.
The best way to cancel your policy is visit to your nearest insurer’s branch and submit your policy cancellation application and collect acknowledgement of the application for cancellation receipt.
The premium refunded will be adjusted to the proportionate risk premium on cover expenses incurred by the insurer on medical examination and stamp duty charges. In case of unit-linked insurance plan, one may not be able to get the actual refund as the refund payment will be subject to the Net Asset Value (NAV) fluctuations and other applicable charges.