15-day free-look period for people to surrender health insurance policy – IRDA
Insurance Regulator, Insurance Regulatory and Development Authority (IRDA) now allowed a policyholder to exit from health insurance with a cover for three years or more within 15 days, which is known as free-look period.
The policyholder can exit or surrender the policy if he is not satisfied with the terms and conditions of the agreement. The regular has mentioned the aforesaid in a circular sent to all insurance companies.
The circular further mentions that the policyholder would be entitled to a refund of the premium paid, however, expenses incurred by the insurer on medical examination of the insured persons and the stamp duty charges would be deducted. In an event where risk has already commenced, such proportionate risk premium shall be calculated as commensurate with the risk covered during such period
This notification will come in effect for all policies issued or renewed on or after October 1, 2009.
IRDA has also given option to insurance companies to opt for a free-look period even for those health insurance policies with duration less than three years.
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