What is the Free Look Period ?
What is the Free Look Period ?
When you purchase a health insurance policy, you are taking the right step to protect yourself and your family from potential financial challenges caused by a medical emergency or planned life-saving surgery. However, after buying the policy, you might realize that the coverage you chose isn't enough, or the additional benefits you need are not included in your plan. This can be a difficult situation, especially since you've already paid your premium and your policy term has started. But don't worry, your policy includes a mandatory Free Look Period during which you can review the terms and conditions. If the policy doesn't meet your needs or expectations, you have the right to cancel it within a specified period without facing penalties.
What is the Free Look Period?
Free Look Period can be defined as the period in which a policyholder of a new insurance policy can terminate the policy. According to the provisions made by IRDAI (Insurance Regulatory and Development Authority of India), a person is eligible to review the policy for a period of 30 days and return the same if not satisfied with the terms and conditions or the features of the policy. The free look period applies to new individual policies and not during renewals or porting of the policy.
Here are a few more things you need to know about the Free Look Period
The Time Frame:
Your free look period of 30 days starts from the date of receipt of your policy. During this period you can go through the policy documents, understand the clauses, inclusions and non-inclusions and exercise your right to terminate the policy within the speculated period if you aren’t satisfied with the same.
The Cancellation Process:
During your free look period, if you wish to terminate or cancel your policy you can call the customer support helpline and inform about the same. Additionally, you will need to write to the insurer via your registered email ID informing them about the same. Some insurers might need you to download a specific form and submit the same along with the original policy copy and a cancellation cheque.
Once your request is received, your insurer will start the process of cancellation and inform you about the same through email or other valid modes of communication (SMS or call).
The Refund Process:
Upon successful cancellation of the policy, the insurer will initiate a refund of the premium you paid, minus the deductions, if any, like the cost of administrative charges, medical examinations, and a proportionate amount for the period you were covered. You might also be charged for any claim that was processed during this period. The refund is typically processed within 7 to 10 working days from the date the insurer receives your cancellation request and the required documents. However, this period might vary from one company to another. The refunded amount is usually be credited to the bank account or credit card used to pay the premium.
Once your policy is cancelled during the free look period, you will no longer be covered under the policy. If you later wish to get another policy you will have to go through the application process again, including any medical examinations.
Conclusion
The Free Look Period is a beneficial provision that gives you the chance to review your insurance policy after purchase, ensuring that it meets your needs without any undue financial loss. It’s a crucial tool for consumer protection in insurance, offering peace of mind and the flexibility to make informed decisions. Always make sure to read your policy documents thoroughly and use the Free Look Period if needed to avoid being locked into an unsuitable policy. However, having health insurance is imperative in today’s world when medical inflation is skyrocketing and public health is at stake throughout the country. So, even if you cancel a policy during the free look period ensure that you get yourself and your family covered under a health insurance plan that meets your needs.
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