Many people buy an insurance policy in a hurry and later realise that it does not suit them. The regulator has given you a safety net called the free look period.
What Is the Free Look Period?
It is a fixed period after you receive your policy document during which you can review the terms and cancel the policy if you do not agree. You get a refund after small deductions.
How Long Is It?
For most life and health policies in India, the free look period is 15 to 30 days from receipt of the policy document, depending on the product and current IRDAI norms. Policies bought through distance marketing may have a longer period. Always check your own policy document.
What Deductions May Apply?
The insurer can deduct:
- Proportionate risk premium for the days you were covered
- Medical examination costs, if any
- Stamp duty
- In ULIPs, the fund value changes due to the market
How to Cancel Within the Free Look Period
- Read the policy document carefully as soon as it arrives.
- If you disagree with any term, write to the insurer stating that you want to cancel and the reason.
- Send the request by email or post, along with the original policy document, if required.
- Keep the acknowledgement.
- The refund is credited after adjustments.
Reasons People Cancel
- Terms differ from what was promised
- Wrong plan or wrong sum insured
- Found a better plan
- Mis-selling by an agent
Important
If you want to cancel after the free look period, the insurer’s normal cancellation rules apply, and you may get a much lower refund.
Frequently Asked Questions
Does free look apply to motor insurance?
Motor policies usually do not have a free look period in the same way, so check the terms.
Can I get a full refund?
No. Some deductions apply.
What if the agent misled me?
Use the free look period and also complain to the insurer or the Ombudsman.
