Cancellation & Refund of insurance
According to the Rules & Regulations of IRDA (Insurance Regulatory and Development Authority), one has the right to cancel the insurance policy within 15 days from the date of receiving the insurance receipt. The 15-day period is called Free look period. Based on the terms and conditions followed by the insurance firm, the premium amount will be refunded.
Cancelling your health insurance
- The most important part of the terms of a health insurance policy is the cancellation policy.
- Knowing the terms attached to the insurance policy is very important for a policyholder.
- The policyholders have the option of Cancelling the policy or getting a refund after confirming that the benefits of the policy don’t match your requirements.
- This can be done only if there is no claim made during the year. The policyholder has to convey the insurance company through a letter mentioning the exact reason why the decision is made.
- The insurance companies give the policyholder a free look period of 15 days from the day of receiving the health insurance policy documents.
- Customers have the option to cancel the policy within these 15 days to receive the refund. If the request is made during the free look period, the policyholder has to submit a written submission to the insurance firm and the request will later be processed.
- The premium amount will be refunded. If the request is made after the free lock-in period, only part of the money will be refunded. In both cases, there should be no claim request.
- If the request is made after the free lock-in period, only part of the money will be refunded. In both cases, there should be no claim request.
- If the customer is not satisfied with the policy, he/she must communicate the same to the insurance provider as quickly as possible, as some firms have framed procedures like Insurance cancellation form.
- The forms may have sections like Details of the policy, date of receiving the policy documents, reasons for cancelling the policy.
- On receiving the request, the firm will contact the policyholder regarding the cancellation.
- The person has to convey the reason for the cancellation request, and in return, the firm representative suggests the possible solutions, and then the refund will be initiated.
There are certain deductions while refunding the amount like the follows,
- The pro-rate premium for the period
- The administrative fee
- The expense relating to the medical checkup done by the insurance firm
Health insurance is essential for everyone given our sedentary lifestyle. Choose the best health insurance policy that meets your health requirements.