If one acts quickly, a bad or unsuitable insurance purchase can be reversed. Here, we tell you about how you can use the free look period in life and health insurance policies to your benefit.
We have always underscored the importance of poring over the fine print when you buy insurance. But sometimes, despite our best efforts or a particularly convincing agent, we end up with a policy that we regret buying as soon as we get our hands on the policy document. Fortunately, if one acts quickly, a bad or unsuitable insurance purchase can be reversed. Here, we tell you about how you can use the free look period in life and health insurance policies to your benefit.
We’ve all bought that outfit that looked great under the flattering lighting in the store but turns out to be terrible once we get home. If you still have the receipt, the tags on the clothing and are within the stipulated time window, you can go and return it and get your money back.
This is essentially how the free look period works for insurance. The free look period is one of several measures put in place by the IRDAI to safeguard the interests of the policy holder. You have a free look period in both life and health insurance.
As per Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests) Regulations, 2017, “the insurer shall inform clearly by the letter forwarding the policy to the policyholder that he has a free look period of 15 days from the date of receipt of the policy document and period of 30 days in case of electronic policies and policies obtained through distance mode, to review the terms and conditions of the policy and where the policyholder disagrees to any of those terms or conditions, he has the option to return the policy to the insurer for cancellation, stating the reasons for his objection, then he shall be entitled to a refund of the premium paid subject only to a deduction of a proportionate risk premium for the period of cover and the expenses incurred by the insurer on medical examination of the proposer and stamp duty charges.”
Once you have bought a term plan, ensure you receive the policy document within a reasonable time. If not, flag it to the insurer so you can make sure it is not lost in transit.
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Insurers in the marine, aviation, cyber, and terrorism sectors are facing mounting underwriting pressures and potential accumulation losses amid escalating hostilities between Iran and Israel, according to Morningstar DBRS.
