Free-look Period in Health Insurance 

What is the Free-look period in Health Insurance?

The Free-look period is the stipulated time period in which a new Health Insurance policy holder can cancel the policy, free from penalties.

During the Free-look period, in case the Insured has dissatisfaction with policy terms and conditions, he can cancel the policy within the stipulated time of 15 days from the date of receipt of Policy document at the insured end . Free-look period is not available for the portability and renewal policies.

An overview of the Free-look period

The Free Look Period shall be applicable on new Individual Health Insurance Policies and not on renewals or at the time of porting/migrating the policy.

The insured person shall be allowed free look period of fifteen days from date of receipt of the policy document to review the terms and conditions of the policy, and to return the same if not acceptable.

How do Free-look periods work?

lf the insured has not made any claim during the Free Look Period, the insured shall be entitled to

i) A refund of the premium paid after deducting any expenses incurred by the Insurance Company for medical examination of the insured person and the stamp duty charges

ii) Where the coverage has already commenced and the option of return of the policy is exercised by the insured person, a deduction towards the proportionate risk premium for period of cover shall be made by the company

Conclusion

Please ensure to completely read the policy terms and conditions before purchasing the policy. By the time you purchase a Health Insurance policy, you are quite familiar with the important features of your insurance cover. Free-look period is a customer-protection feature that gives you a chance to review every policy detail and understand more about your coverage. This paves the way to get a refund of the initial premium and switch to other suitable policies catering to your needs. Hence, Insurance policies with a Free-look period are usually an advantage to the customer.