The regulation allows 15 days as an unfastened-appearance period from the date of receipt of the policy report to the policyholder. The policyholder is permitted to cancel the coverage throughout this era and get a reimbursement Types of guidelines Free-look period is to be had most effective for existence coverage regulations. For medical health insurance policies, the period needs to be at least three years. Cancellation request Once the policyholder is satisfied that the policy terms do no longer fit his or her expectations, they should talk their aim to cancel the coverage in writing. Some coverage organizations prescribe a simplified form for cancellation of policy all through the free appearance duration. Policy information, date of receipt of coverage file, cause for cancellation and agent details must be noted within the application. The system On receiving the cancellation request, the coverage agency will get in contact with the policyholder to recognize the reasons for cancellation and try to provide answers. However, if one nevertheless needs to cancel the policy, the insurance organization will ought to the system the request and problem refund. What is refunded? Once the refund application manner is finished and authorized, the refund top rate is calculated after deducting the following: Pro-rated risk top rate for the length on cowl Medical examination expenses incurred with the aid of the insurance agency Stamp responsibility prices ULIPs refunds In case of repayment of a Ulip policy, because the coverage is marketplace-related, the refund top class will be as consistent with the triumphing NAV of the Ulip relevant at the date of policy cancellation (after deducting the above expenses).
Point to observe The policyholder should show the date of receipt of policy report. In the case of online sale of the policy, the loose-appearance length of 15 days is prolonged to 30 days.