What is a cancellation in Health Insurance?

Know More About Health Insurance Cancellation

Cancellation of health insurance is the end of a policy prior to its expiration date, either by the insured person or the insurer.

The best way to invest in your health is to buy health insurance. A health insurance benefit starts from hospitalisation expenses, no-claim bonus and continuity benefits.

What will happen to the premium during the cancellation of the health insurance policy? Before diving into the answer. Let us get information about the cancellation of the policy.

The health insurance policy can be cancelled from either end. Either the insurance company or the policyholder can cancel the policy. It is essential to know about the cancellation processes. The policyholder has the liberty to cancel the policy at any time with prior notification. Now, one can raise the question: how to cancel a mediclaim policy? But before jumping into this question, let’s understand the policy cancellation definition in medical insurance.

What is policy cancellation in health insurance?

Let’s understand the insurance cancellation definition in health. Health insurance Policy cancellation is the way of terminating a health insurance plan and stopping the coverage.

What is a cancelable health policy?

A cancellable health policy is a policy that the insurer will be able to cancel at any time, even if the policyholder has been paying premiums on time.

Health insurance cancellation governed by Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers) Regulations, 2024 laws differ by state, but they hold some general guidelines. The medical insurance cancellation time period differs based on the type of policy and when the policy is cancelled

Also Read: Health Insurance Tax Benefit

How do I cancel a health insurance plan?

How to cancel my health insurance policy? Initially, inform your health insurer’s support team about your desire to terminate the health insurance plan. Next, send your insurer a written policy cancellation request either offline or online. The written request should have policy details and the reason for the cancellation of health insurance.

Types of Cancellation in Health Insurance

Can I cancel a health insurance policy at any time? Yes, you can cancel a health plan at any time. But different rules apply depending on when you cancel. So, let's dive into the types of cancellation which can reveal different rules applicable for different situations of cancellation of policy.

Cancellation in the free look period

Cancellation in the free look period is when the policyholder can cancel the policy within a free-look period of the policy mentioned in the policy document.

All health insurance policies come with a free look period. The free look period is the time given to the policyholder to reflect on the policy terms and conditions and decide whether to continue the policy or cancel it.

The insurance company can also cancel the policy under the following conditions:

• The policy can be cancelled in the event of misrepresentation or non-disclosure of the material facts.
• If the policyholder indulges infraudulent activities.

Make the right choice while buying the policy. Take the time to understand the policy’s inclusion and other benefits. Go for a policy that has comprehensive coverage and benefits.

What happens if I cancel my health insurance policy?

If you are unhappy with your existing policy, you can cancel it anytime. If you cancel your health insurance policy, then you'll not be able to be covered for medical expenses after the cancellation date. You might be eligible for a refund of a few or all of your premiums on proportionate basis, based on your cancellation time and the time period for which you've been insured. Although most health insurance plans are refundable health insurance but there are always certain terms and conditions associated with your plans. So, it is advised to review all terms and conditions before buying any health plans. 
 

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Summing up
 

Cancellation of the policy can be made both by the Insured and the Insurer. Reasons for cancellation can include nonpayment of premiums, fraud or changes in the policyholder’s health status, etc.

Cancellation of a policy can leave the policyholder without health insurance money back. So it is important to understand the terms of the policy and the cancellation process.