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Term of the day: Free look period

| Updated on December 30, 2019 Published on December 30, 2019

Free look period

The free look period is the time-frame within which a new policyholder can return his/her policy to the insurance company without paying any penalties. Under Insurance Regulatory and Development Authority of India (IRDAI) regulations, all insurance companies must provide the provisions and the requisite time for the policyholder to return the policy, if dissatisfied, and get a refund.

The free look period is usually 15 days (30 days for online policies). This is applicable to both life and general insurance policies. If a customer wishes to cancel the policy, he/she should submit a written request to the insurer. The premium will be refunded after deducting (if any) the proportionate risk premium for the coverage period, stamp duty charges and any expenses borne towards medical examinations. While the insurer may seek to resolve the issue rather than terminate the policy, it cannot force the applicant to retain it.

Published on December 30, 2019
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