Free Look Period - Terminology - Insurance
After having received the policy document, one may not want to continue with the policy.
After having received the policy document, one may not want to continue with the policy.
This could be if one is not
satisfied with coverage or the terms and conditions of the policy.
The policyholder has the option to
cancel the policy within fifteen (15) days of receiving it provided there is no
claim.
Remember, the 15-day period starts
from the date when the policy document is received by the policyholder (by
courier etc..) and not from the date of issuance of the policy.
The free look period is applicable
only in the initial year of purchase and not applicable on the renewal
policies.
To cancel, one has to communicate to
the company in writing and return the policy document.
The insurer refunds the premium
after adjusting for proportionate risk premium for the period already covered,
expenses incurred by the insurer on medical examination and stamp duty charges.
No comments:
Post a Comment