Every policyholder is allowed a free-look period of 15 days to enable him to go through the terms and conditions of the policy and reverse the purchase decision if he finds it unsuitable. During this period, he can cancel the policy, ask for a change in its features, or shift to another policy.
Time limit
This right can be exercised within 15 days of the receipt of the policy document. The onus of proving the date of receipt of the policy document is on the policyholder.
Form
The request for exercising the free look option must be made in writing to the insurance company. Many insurers prescribe a free-look request form, which can be downloaded from the company’s website.
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Details
The policyholder needs to provide details like date of receipt of policy document, agent information and reason for cancellation/change. The address and bank details must be provided for refund of premium.
Documents
The original policy document, along with the first premium receipt, an indemnity bond, if the original policy document is not available, and a cancelled cheque must be submitted with the form.
Premium refund
The premium refund is adjusted for the following:
• Proportionate risk premium for the period on cover.
• Expenses incurred by the insurer on medical examination.
• Stamp duty charges.
