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IRDA announces 'free-look' period for health insurance
By siliconindia
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Friday, 04 September 2009, 18:36 IST
Bangalore: In a customer friendly move, the Insurance Regulatory and Development Authority (IRDA) has introduced a 15 day 'free-look' period for customers buying health insurance products of three years or more. This initiative will enable a health insurance policy holder to return the policy to the general insurance company within 15 days of subscription, if the holder is not satisfied with the terms and conditions.
After exiting, the policy holder can get a refund of the premium paid with only the expenses incurred by the insurer on medical examination of the insured person and the stamp duty charges deducted from the premium. In cases where the policy has already come into force, the proportionate risk premium for the period on the cover will also be deducted from the premium refund.
According to the IRDA, any failure to refund the premium by the general insurance companies would be liable to appropriate action under the provisions of the IRDA Act, 1999, the Insurance Act, 1938, and the regulations framed. The 'free-look' period is already available for life insurance policies and policy holders have the option of returning it within 15 days if they are not satisfied with the terms and conditions.