How to Cancel Health Insurance Policy: Full Guide of 2025
Ravi Mehta, an IT professional residing in Bangalore, purchased health cover in 2021, during which the global pandemic taught everyone to pay more attention to health insurance. In the case today, the year 2025, he discovered that since his employer offers a full group health insurance cover to his family, it does not make sense to pay twice on the premiums. Similar to Ravi, the amount of Indians, who re-assess their health policy annually is several thousand and occasionally they wish to terminate or port their policy due to numerous reasons such as enhanced product characteristics, cost-effective premiums or any personal reason.
Surprising or not?
The number of individual health insurance policies that are not renewed or renewed is over 2 lakh each quarter as individuals change their jobs, change cities, find cheaper, or better plans, or unsatisfactory service according to the data provided by the IRDAI. However, few know the correct way, time, and consequences of canceling health insurance, and they either miss benefits or unnecessarily pay up.
At a Glance:
- Termination of health insurance policy is a well-nurtured procedure
- Follow schedule to exclude additional expenses
- Deploy the use of online and offline choices
- Learn refund and tax consequences
- Try and compare new options at the site eg at fincover.com before cancelling
- Ask a professional when you are confused about other coverage
Health Insurance Cancellation- What and Why in 2025?
Health insurance cancellation is the act of terminating your policy, whether as a new purchase, or by any time throughout coverage. It is also known as policy termination or withdraw, which sometimes occurs due to many reasons.
Why is it that people have been wanting to cancel health insurance now?
When choosing to drop their health insurance policy, the following are the best reasons within the year 2025:
- One got a new job with a group health cover that pays better
- They are seen elsewhere with lower priced or more appropriate plan at a lower price
- Problems of service with existing insurer
- Policies by duplicate of person same
- Renewal premium that is unaffordable following increase in price
- Disatisfied with claims process / or ratio of settlements
- Removed to an outside area of coverage or city
- The changed situation does not require individual plan any more
Expert Insight:
Insurance advisor, Dr Amiya Rao observes: “In India, most cancellations of individual policies in 2024-25 will be around job changes and folks learning what their real coverage requirements are after the COVID experience.”
Step by Step Cancelling of Health Insurance Policy in 2025: The Procedure
The process of cancellation of health policy is easy, but one has to take some steps in order to prevent loss or further troubles.
What is the Cancellation Process of Health Insurance? Is Online Possible?
Most insurers now have alternatives of cancelling your health policy whether you purchased your policy at an offline shop or through an agent or online. Here’s the common roadmap:
A. Free-Look Period cancellation:
- Every health insurance policy in India will set aside a 15 days free look after obtaining policy.
- No charges are deducted; full premium refund (after minor stamp duty or medical expenses).
- Perfect when you regret purchase immediately or find any difficulties with documents.
B. Free-Look and Not So Free Cancellation:
- The policy can be cancelled at any time during the year.
- Submit written application to insurer (form or email).
- Return original policy papers in case they are issued hard copies.
- Refund method and reason of cancellation.
- The insurer will pay premium on utilized period and reimburse the remainder.
- It will be 7-14 working days upon approval.
Online Option:
Other major insurers and brokers have enabled cancellation request on their website, on cell phone app or through customer care. Eg: Star Health, ICICI Lombard, HDFC Ergo and Niva Bupa etc.
- Register in the portal of the insurer
- Log into Manage Policy or My Policies
- Click on the option of Cancellation and complete the form
- Provide uploading documents in case they are necessary
- Online tracking of tracks
C. Cancellation by Use of Aggregators or Onlines:
Assuming that you bought a policy through a portal such as fincover.com, you may cancel through their help desk or portal at their online dashboard.
- Handwritten cancellation request and refund reply should be kept at all times.
- Ensure no outstanding claim; claim should settle or be withdrawn.
- Office or banks insurance might be a different procedure.
Table of Cancellation Overview
| Method | Time in which refund would be made | Amount to be deducted as a rule on the refund | Coupons required |
|---|---|---|---|
| Free Look (15 days) | 7-10 days | Full Premium less fees | Cancellation form, docs |
| After free look | 10-14 days | Pro-rata refund (deduct used period + GST) | Application, policy copy |
| Internet | Quickest, 7 days | According to regulations | Uploading of e-document |
Did you know?
To initiate and monitor the status of cancellation within seconds, many insurers in 2025 have WhatsApp chatbots.
Which Documents are Required to Cancel Health Insurance?
When terminating the contract during the 15-day free look, or any time, there are very often some minimum documents and procedures to perform.
What Documents Should be Submitted to Terminate the Policy?
The majority of the insurers will require:
- Filled and signed cancellation request form (can be digital)
- KYC ID proof (Aadhaar, PAN)
- Original soft copy or Policy document
- Last premium receipt (if paid offline)
- Bank cancelled cheque (for refund)
- Reason for cancellation (simple letter or tick box)
Of online plans:
It is just as easy as simply download the form, enter in your details, sign it on a digital platform, and even upload it. Keep the email number or ticket number given upon making a request.
Notes to Keep in Mind:
- Where policy is in joint names or under a multiple member, consent is needed by all and any signatures that are needed should be signed by all.
- Policy cannot be cancelled as long as there is any claim being entertained until the claim is settled or refused.
- Before you can cancel your new plan, do verify whether it has been activated, or you have coverage gap.
Can I recover anything by cancelling health insurance policy?
Of course the question that immediately comes to mind is: will you receive any refund when you terminate your health insurance cover ahead of the expiry period?
What is the Amount of the Refund with which You will Get Refund? Which Charges are Charged?
A. Return of Free-Look Period:
- Cancel within 15 days of buying (free look), you get nearly full refund.
- Only minor charges (stamp duty, medical exam) are deducted.
- Insurer asked no questions.
B. Mid Term Cancellation Refund:
- Free look period, cancel and premium of used period is forfeited.
- It is on pro-rata basis on unused period per IRDAI and insurer tariff.
- In most cases GST paid is not refundable except during free look.
Sample Refund Table (annual policy, Rs 10,000 premium):
| Month of Cancellation | Approx Refund (Rs) |
|---|---|
| In 15 days | 9800 |
| 3 months later | 7500 |
| In 6 months | 5000 |
| In 9 months | 2500 |
No money back in the case of just one month remaining or, where claims have already been filed.
Expert Insight:
Where cancelled policy tax benefit has been taken, it will have to be reversed in your succeeding ITR in case of setting it off under section 80D.
How Does the Cancellation of Policy Affect Tax and Continuity?
You will be affected by policy cancellation in case you availed 80D tax benefit or require porting to a new insurer.
2. Will you lose your health insurance waiting period/no claim bonus by cancelling?
Waiting period restart:
Should you subsequently cancel your prior plan and then purchase a new one then your pre-existing disease and other provision waiting period will begin once again, unless you port prior to expiry.
To assure hassle free cover acquire the new plan or port in the renewal period.
Tax Impact:
Incase you have claimed premium under sec 80D and thereafter cancelled within same tax year, you will have to reverse or adjust the amount in which you file next ITR.
No Claim Los Bonus:
Cancelling of a standalone plan entails the loss of NCB or discount on premium.
The possibility to cancel health insurance policy online in 2025. What is Faster Offline or On-Line?
Is it Quicker to Cancel Online Than to Go to Branch?
Indeed, it takes less time to cancel online, via insurer official app, site, or reliable partners fincover.com.
No visit of any physical form, courier or agent.
Refund by the internet to bank account or payment method of yours in 7-10 days.
Online Cancellation: 2025 Major Characteristics:
- E-request on the spot
- Convenient load of documents
- On-line status reports
- In clarification, in selected cases, an immediate chat was in place.
Did you know??
By 2025, fincover.com provides a special dashboard to maintain, compare and even change/cancel your health insurance via professional consultants.
What If You Will Need Health Insurance Once More in the Future? Smart Comparing and Applying
When considering canceling your health insurance, remember these factors, in case you suspect you may be in need of it soon.
Where to Get Better Plan? What is the Process of applying to purchase a New Health Insurance Policy?
- Check and queue up new options and cancel old policy online using online comparison websites such as fincover.com.
- Compare coverage, network hospitals in your city, ratio of submitting a claim, premium, preference of cashless, renewal plans.
- When it comes to family, check whether maternity, OPD care or wellness features are present.
- It is possible to apply directly through fincover.com with the uploading of KYC and Aadhaar linking and paying online. The majority receives softcopy immediately.
- Intermediate health problems have to be planned with an overlap, or they can be ported during renewal window to benefit of continuity.
There is a comparison table comparing the old or new plan before cancelling.
| Feature | Old Plan | New Plan (example) |
|---|---|---|
| Sum Assured | 5 Lakh | 10 Lakh |
| Premium | 12,000 Rs | 13,500 |
| Network Hospitals | 2500+ | 6200+ |
| Claims Settlement Ratio | 94 percent | 98 percent |
| Wellness, OPD, Maternity | Limited | Yes, as part of it |
| Portability Waiting Period Transfer | No | Yes, in the instance of porting |
What are the Alternatives of Cancelling Health Insurance? (Porting Vs Surrender Vs Pause)
It is not always necessary that you feel the need to cancel your health insurance so swiftly and so abruptly
Is it possible to Port to Another Insurer Or to Suspend the Policy rather than canceling it?
Porting:
IRDAI permits portability of health insurance, without discontinuity in case one is not satisfied with the existing insurer. In such a way, waiting period benefit and coverage will be transferred to the new insurer in case of doing the port before expiring.
Pausing/Deferring:
Some insurers in 2025 allow you to put policy on ‘pause’ for short durations for genuine reasons, subject to rules. Premium changes as such.
Partial Cancellation:
In a floater family, you can dispose one of the members or go to an individual plan instead.
You can check these alternatives to retain part of the benefits but either decrease load or change to a superior service.
Expert Insight:
One should continually review conditions on continuity benefits and service location moving, as well as transfers prior to the financing of the move or the lesser removal.
People Also Asked: Frequently Asked Questions
What is the period it should take in canceling a health insurance policy?
Typically, accurate documents are taken in, accepted, and 7-14 days later, one gets the result.
Will I be getting GST amount back upon cancelling of the health insurance?
Refund of GST may only occur in case of cancellation during the free-look period. Once this is over, it is refunded only on unutilized premium base.
How long is the free-look period of a health insurance in India?
The policy has a 15 days grace period of cancellation upon receiving.
Is it possible to abandon my health insurance in less than one year?
Yes, cancellation can take place at any time in the middle. Refund of unused period on pro-rata basis shall be paid.
Will I be able to call Whatsapp or app in 2025 and cancel my health insurance?
WhatsApp and app feature now allows most of the biggest insurers and brokers including fincover.com to initiate and monitor cancellation.
What is the charge of cancelling health insurance after renewing?
Insurer will collect deduction of premium of the period used but not in penalty. No refund Where already claimed or impending.
Do I qualify to receive tax benefit in case I discontinue my policy in the middle?
There will be no problem only when you do not transfer 80D benefit earlier claimed in the future ITR.
Ditch or transfer my policy?
To keep waiting period and NCB, the option of porting out before renewal date should always be used.
What will occur when I cancel my family floater health policy?
All covered members are subjected to the end of entire policy. Discuss eliminating just a few of the members in case, it is necessary.
By following this 2025 dissolving health insurance account, you will be able to act consciously, not make the same mistakes as others and get improved or better coverage that fits your requirements. Use online advisory platforms like fincover.com to compare and act smartly!